Roman Abramovich investigated by Cyprus police over $672m tax claims

Police in Cyprus have launched a formal investigation into the financial activities of Russian billionaire Roman Abramovich following allegations of tax evasion and document falsification. The probe was triggered by revelations from a BBC Panorama report, which suggested that the professional services firm Deloitte assisted Abramovich in hiding wealth from authorities. A Ministry of Justice official in Cyprus confirmed that the investigation aims to determine whether criminal acts occurred during these financial transactions.

The core of the investigation involves the alleged disappearance of $672 million in assets from Abramovich’s accounts. The report suggests that Deloitte provided guidance on various tax evasion schemes, which facilitated the movement of these funds while keeping them out of the sight of regulators. The Financial Crime Unit of the Cyprus police is now tasked with examining a significant volume of evidence related to these claims, a process that officials expect will last for several months.

In their defense, lawyers for Roman Abramovich have issued a firm denial of any wrongdoing, asserting that he consistently relied on professional advice to manage his global financial interests. Deloitte has also responded to the allegations, claiming that the firm has remained in compliance with all relevant laws. The accounting giant noted that the documents under scrutiny are older records and maintained that their practices met the legal standards required at the time.

This investigation comes at a time when Cyprus is under heightened international pressure to reform its financial sector and distance itself from its reputation as a haven for offshore wealth. The probe into Abramovich's affairs is viewed as part of a larger crackdown on money laundering and financial malpractice within the country. As the Financial Crime Unit continues its work, the outcome could have significant implications for how foreign investments and professional advisory services are regulated in Cyprus.