Turkish Foreign Minister Flags Israeli Property Acquisitions in Northern Cyprus

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urkish Foreign Minister Hakan Fidan has expressed concerns over Israeli nationals purchasing property in the Turkish Republic of Northern Cyprus (TRNC), a matter he intends to discuss with the Turkish Cypriot authorities. Addressing the Turkish Parliamentary Budget Committee, Fidan acknowledged the investigation into claims of substantial land acquisitions by Israelis and intermediaries related to Israel.

Fidan noted that the Turkish National Intelligence Organization (MIT) is monitoring the situation but also highlighted that Israelis rank 12th among all nationalities buying property in the TRNC since 2000. He contrasted this with the UK and Iran, which lead the foreign property ownership stakes over the past five years and since 2000, respectively.

While Fidan seeks to address the issue through the proper Turkish Cypriot channels, considering each property sale in the north requires approval from the local ‘cabinet,’ concerns extend beyond just the nationality of the buyers.

Calls for legislative reform

The north faces scrutiny over potential money laundering activities linked to property purchases by third-country nationals. Cafer Gurcafer, the chairman of the Cyprus Turkish construction contractors’ association, warned of the risks of the TRNC being excluded from the Swift banking system due to non-compliance with global anti-money laundering standards. He urged the Turkish Cypriot Central Bank to take immediate action to avoid international sanctions.

Gurcafer expressed concern that the current laxity in money movement compared to European countries has made the region vulnerable to abuses by those exploiting loopholes in the system. The lack of state action against such vulnerabilities, he warned, risks tarnishing the region’s global reputation.

Emphasizing the importance of updating legislation to reflect contemporary standards, Gurcafer called on the Central Bank and parliament to swiftly enact necessary reforms. His vision for Northern Cyprus is to become a destination for legitimate holiday home purchases rather than a haven for money laundering activities.

Preventing money laundry

Echoing these sentiments, Huseyin Sadeghi, a board member of the Real Estate Agents’ Association, underscored the importance of a nuanced approach. While acknowledging the need for regulatory measures to prevent money laundering, Sadeghi warned against broad generalizations that could harm the region’s vital real estate sector.

Failure to pass such legislation could result in Northern Cyprus being placed on the global “grey list” for anti-money laundering, joining the ranks of Bulgaria, Croatia, and Turkey, among others. This inclusion could have significant implications for the region’s financial relations and could further increase scrutiny and restrictions.

The “black list,” featuring countries like North Korea, Iran, and Myanmar, represents an even more severe level of non-compliance, highlighting the urgent need for Northern Cyprus to align its financial regulations with international standards.

Source: Cyprus Mail.