Jho Low scandal

Cyprus’ reputation has been negatively affected for over seven years due to the Jho Low scandal, where the Malaysian criminal obtained a Cypriot passport through real estate investments and donations to the Church of Cyprus. The late archbishop admitted to assisting Jho Low in obtaining citizenship, claiming ignorance of his past. The 2021 OCCRP report highlighted Jho Low as the face of the 1MDB embezzlement scandal, stealing billions from Malaysia’s sovereign wealth fund. The Cypriot “golden passport” program, officially known as Citizenship by Investment, aimed to attract wealthy foreigners but was criticized for facilitating access for kleptocrats and criminals to the EU. The program was lucrative for lawyers and financial service providers in Cyprus. The new president of Cyprus has committed to reforming these practices to restore the country’s reputation as a legitimate investment and financial services destination. A proposal suggests assigning regulatory responsibilities to the Cyprus Securities and Exchange Commission (CySEC) to ensure independence and effectiveness in supervision, despite opposition from the Cyprus Bar Association. CySEC, under the leadership of Chairman George Theocharides, acknowledges the need for additional resources and expertise to take on this challenge. Demetra Kalogerou, former CySEC chair, supports the government’s decision for a single regulator, criticizing the lack of independence in the current system where professional associations regulate their own members.