Man arrested with 7.5kg of cannabis
A 40-year-old man was arrested for possessing a total of 7.5 kilograms of cannabis after a routine traffic stop in the Famagusta district led to the discovery of the drug in his car and home.
investigation
Two arrested for money laundering
Police in Limassol arrested two individuals on Thursday for suspected money laundering. A property under surveillance for alleged financial crimes led to the arrests when a car arrived, and both occupants were detained. The individuals, a 33-year-old driver and a 34-year-old passenger, both third country nationals, were found with significant amounts of cash. The passenger had €161,425 in cash within 17 envelopes. A further search of the property revealed €706,300, ,539, and £1,375 in cash, along with two banknote counting machines and empty envelopes, leading to the arrest of a 41-year-old claiming partial ownership of the property. Additional searches at the 34-year-old’s house found €815 in cash, multiple mobile phones, and empty envelopes. The financial crime investigation unit in Limassol is continuing the investigation.
Child in intensive care after car crash
A seven-year-old girl is in intensive care after a car crash in Paphos, involving a collision between a car driven by a 21-year-old man and another driven by a 30-year-old woman with three children inside. The incident occurred around 7.40pm on Thursday. The 14-year-old was hospitalized overnight as a precaution, and the seven-year-old was taken to the paediatric intensive care unit at Makarios hospital in Nicosia. The 21-year-old driver’s drug test was negative, and the police investigation is ongoing.
UBS, ’s rescue of Credit Suisse creates new risks for Switzerland, OECD says
The Organisation for Economic Cooperation and Development (OECD) has stated that UBS’s rescue takeover of Credit Suisse has introduced new risks and challenges for the Swiss economy, despite stabilizing financial stability. The merger, which was the largest bank merger since the global financial crisis, has significantly increased UBS’s size, making it a more dominant force in the Swiss banking sector. The OECD has raised concerns about UBS’s domestic dominance and the potential need for stronger financial regulation. The Financial Stability Board has also highlighted the risks posed by UBS’s failure to Switzerland and has called for stronger bank controls. The Swiss government is considering proposals to enhance regulations for big banks. The OECD report also mentions that the merger could lead to significant job losses but believes the Swiss labor market can absorb these losses. Additionally, the report notes that the Swiss housing market, while showing signs of cooling, still has vulnerabilities with properties being overvalued by up to 40%. The average price for an apartment in Switzerland has risen to over 1 million Swiss francs, with prices in Zurich reaching 1.8 million francs. The OECD forecasts that the Swiss economy will grow by 0.9% in 2024 and 1.4% in 2025, which is below the country’s long-term average growth rate.
Our View: Political will to protect environment is nonexistant
Cyprus governments have historically not prioritized environmental protection, often disregarding their own regulations and laws to favor local communities, developers, and interest groups, despite pressure from the European Union. This has led to Cyprus being referred to the European Court for not adequately protecting Natura 2000 sites. All governments have failed to protect the environment, with a notable example being unauthorized road works in the Akamas area. Despite two investigations into these road works, the reasons behind the deviation from agreed specifications remain undisclosed, prompting a third investigation. The European Commission has criticized Cyprus for approving projects that could harm Natura 2000 areas without proper impact studies, despite a warning letter sent in 2019. Cyprus has designated 37 sites as Special Areas of Conservation, yet no conservation measures have been established for 28 of these. In response to the Commission’s report, the agriculture ministry claimed to have initiated inter-departmental working groups to complete the legal framework for managing Natura 2000 areas, aiming for full compliance with EU directives. However, the lack of political will is seen as a significant barrier to genuine environmental protection.
FCA signals watchdog open to ending to free banking in Britain
Britain’s Financial Conduct Authority (FCA) CEO, Nikhil Rathi, stated the FCA would not oppose changes to the UK’s free banking model if banks decide to introduce fees for account holding to offset rising regulation costs. Rathi emphasized the importance of protecting retail customers through the Consumer Duty rules and acknowledged concerns about regulation increasing pressure on banking business models and margins. He clarified that the current free banking model is a market choice, not a regulatory requirement, except for basic bank accounts. Consumer groups criticized Rathi’s comments, with Simon Youel from Positive Money highlighting banks’ record profits and opposing the reduction of free services. Rathi, leading the FCA since October 2020, mentioned the Consumer Duty could reduce compensation levies on financial firms and stressed a pragmatic approach to enforcing these rules. He highlighted the focus on the cash savings market and certain insurance products, and mentioned the FCA’s investigation into potential overcharging in motor finance, which could lead to significant redress costs for banks. Rathi also mentioned a cautious approach to regulating AI advancements in financial services.
‘Investigate church donations for money laundering’
The attorney-general’s office in Cyprus has appointed two investigators, Ninos Kekkos and George Papaioannou, to examine criminal offenses related to an ongoing scandal involving monks. MPs have urged the money laundering unit (Mokas) to investigate the church following revelations about monks paying for social media posts to increase cash flow. Justice Minister Marios Hartsiotis has committed to a thorough investigation of the scandal. Allegations have emerged involving the far-right Elam party leader Christos Christou, former police chief Kypros Michaelides, Mokas, and the police. Concerns were raised about €800,000 in cash found at the Osiou Avvakoum monastery and the handling of the money. MPs have suggested that the church might be involved in money laundering, citing donations from Russian oligarchs and Malaysian businessman Jho Low. The church’s financial dealings, including those with foreign donors, are under scrutiny, with calls for a more rigorous investigation into the source of the funds. There are also allegations of police misconduct in the handling of the money transfer operation related to the scandal.
Monastery implicated in environmental scandal
The Osiou Avakoum monastery was implicated in an environmental scandal for being built on land protected under the Natura 2000 environmental policy. Legal action has been taken against the monastery, the church committee, and Archimandrite Nektarios Georgiou for unauthorized constructions on the site. Investigations revealed illegal constructions and a lack of final approvals for various buildings. The monastery, constructed in 2020, is also under police investigation for claims of financial extortion.
‘We should ask why there are so many medical schools’
Turkish Cypriot Leader Ersin Tatar addressed the “fake diploma scandal” affecting the north’s higher education sector. He mentioned criticism regarding the excessive number of medical and dental schools relative to the population and suggested that the north’s higher education accreditation authority (Yodak) might have been negligent. Tatar had previously called for Yodak chairman Turgay Avci to resign due to allegations of bribery during the accreditation process of the Cyprus Health and Social Sciences University (KSTU)’s medicine school. The north’s ‘prime minister’ Unal Ustel stated the ‘government’ is actively addressing the issue to minimize negative impacts on the higher education sector and emphasized the importance of justice and maintaining the country’s reputation.
UK will change law to ban foreign states from owning newspapers
Britain’s government plans to prevent foreign states from owning newspapers, potentially blocking Abu Dhabi-backed RedBird IMI’s bid to buy the Telegraph. The proposed legislation amendment aims to stop newspaper and periodical news magazine mergers involving foreign state ownership, influence, or control. This move is in response to concerns over the independence of the media and foreign investors acquiring politically influential assets. The Telegraph, known for its connections with the Conservative Party, is at the center of this political struggle for ownership. The government’s plan includes referring relevant media mergers to the Competition and Markets Authority (CMA) for assessment of foreign state involvement, with the authority to block or unwind mergers based on the findings.