In its edition of 24 March, 2003, the Russian newspaper “Kommersant” repeats the allegation first made on 18 March, 2003, that the Chairman of the Federal Commission for the Securities Market of Russia, during a conference held in Geneva, Switzerland, revealed that “the Central Bank of Cyprus is giving the Federal Commission for the Securities Market of Russia, all the information relating to the beneficial owners of Russian companies registered in Cyprus”. In support of the above, “Kommersant” refers to an alleged transcript of a questions and answers session between the Chairman of the Federal Commission for the Securities Market of Russia and one of the participants at the above conference.
In this connection, the Central Bank of Cyprus has already issued a detailed press release on Wednesday 19 March, 2003 and calls upon all interested parties to refer to it. In addition, the Central Bank of Cyprus wishes to state the following:
- No “panic” whatsoever has been created among Russian businessmen operating from Cyprus and, certainly, not a single Russian businessman has left Cyprus “in a hurry” as “Kommersant” is wishing or imagining or inventing to be happening. The above newspaper also refers to the “fear” that has, apparently, overtaken Russian businessmen in general as well as to an outbreak of a “truly international scandal”!
- The relationship between the Central Bank of Cyprus and the Federal Commission for the Securities Market of Russia, is strictly governed by the provisions of the “Memorandum of Understanding” signed on 21 March, 2003. The purpose as well as the contents of the “Memorandum of Understanding” cannot be subject to any misinterpretation. The object of the “Memorandum of Understanding” is the regulation of the provision of financial/investment services to the public at large by Cypriot owned companies established in Russia and by Russian owned companies established in Cyprus. The provisions of the “Memorandum of Understanding” do not apply to companies either in Cyprus or in Russia, which do not fall into the above special category of a very small number of companies for which it is necessary to have transparency as regards their ownership.
- In view of Cyprus’s forthcoming accession to the European Union, the country’s tax system has been modified in order to comply fully with the European acquis and, at the same time, introduce important advantages compared to many other countries. The new tax regime combined with Cyprus’s well known non-tax advantages as well as the great potential which is being created, as a result of the accession to the European Union, render Cyprus a most sought after location among international businessmen.
- The Chairman of the Federal Commission for the Securities Market of Russia, has already denied the alleged statements attributed to him by “Kommersant” which appears to have undertaken the task of distorting all relevant facts, apparently, with a view of harming Cyprus’s constant and on-going development as a respectable and successful international financial centre.