Cyprus Financial Crisis Creates Scrutiny on the Banking Activity of Bad Actors

The financial crisis that enveloped Cyprus, in connection with the broader EU financial crisis, has created the potential for market scrutiny of bad actors — particularly Russian — that might be using Cyprus as a safe haven or financial hub.  The disclosure of such entities could impact the risk assessments of other financial institutions and safe havens, calling into question their market eligibility for rescue packages, insurance coverage and official credit guarantees by disclosing their direct and indirect interactions with non-state entities and/or individuals that are bad actors.