Country Reports on Terrorism 2012 - Cyprus

Overview: Despite limited resources, Cyprus took a clear stand against terrorism, particularly with its arrest, investigation, and prosecution of a Lebanese Hizballah suspect. The Republic of Cyprus government was responsive to efforts to block and freeze terrorist assets, sought to implement Financial Action Task Force (FATF) recommendations, and made significant efforts to conform to EU counterterrorism directives. The Government of Cyprus viewed counterterrorism as a foreign policy priority and partnered with other governments, bilaterally and multilaterally, to fight terrorism. Cyprus' counterterrorism partnership with the United States included regular, routine protection for transiting U.S. military personnel, aircraft and naval vessels throughout 2012, and participation in the Department of State's Antiterrorism Assistance and Regional Security Initiative programs, which strengthened the government's capacity to counter terrorism.

Since 1974, Cyprus has been divided de facto into the Republic of Cyprus-controlled area, composed of the southern two-thirds of the island, and a northern third, administered by the Turkish Cypriots; the Republic of Cyprus does not exercise effective control over the area administered by the Turkish Cypriots. In 1983, the Turkish Cypriots declared the northern part an independent "Turkish Republic of Northern Cyprus" (TRNC). The United States does not recognize the "TRNC," nor does any country other than Turkey. The UN Peacekeeping Force in Cyprus patrols the buffer zone separating the two sides, but people, narcotics, and other illicit goods routinely cross uncontrolled.

The division of the island has obstructed counterterrorism cooperation between the two communities' law enforcement authorities, and between Cyprus and Turkey. In the Turkish Cypriot-administered area, issues of status and recognition inevitably restricted the ability of authorities to cooperate on counterterrorism with international organizations and countries other than Turkey. Turkish Cypriots cannot sign treaties, UN conventions, or other international agreements; and lacked the legal and institutional framework necessary to counter money laundering and terrorist financing effectively. Within these limitations, however, Turkish Cypriots cooperated in pursuing specific counterterrorism objectives.

Legislation, Law Enforcement, and Border Security: The Cypriot government remained committed to conforming to all European Council guidelines for countering terrorism. The Cypriot government invoked its Counter Terrorism Act of 2010 for the first time with the case of a suspected Hizballah operative detained by the Cypriot authorities in July for allegedly helping plan an attack against Israeli tourists in Cyprus. The prosecution subsequently dropped the terrorism-related charges, in part since Hizballah is not currently listed within the EU as a terrorist organization, to pursue conviction under the penal code for eight other charges, including: conspiracy, consent to commit a criminal offense, and participation in a criminal organization. On March 21, 2013, a Cyprus court found the Hizballah operative guilty of charges stemming from his surveillance activities of Israeli tourist targets.

In 2012, Cyprus' National Counterterrorism Coordinator led an ongoing interagency process to develop a new National Counterterrorism Strategy for Cyprus. The strategy is reportedly based on the four EU counterterrorism pillars of "Prevent, Protect, Pursue, and Respond." Security measures were put in place for the protection of western interests and soft targets, especially during Cyprus's Presidency of the Council of the EU.

Authorities issued a number of search warrants in response to suspected terrorist activity but found no evidence of terrorism. Although there were anecdotal reports of a low-level Kurdistan Workers' Party (PKK) presence, there was no noticeable activity in 2012. Cyprus maintained it was fulfilling all responsibilities with respect to the EU designation of the PKK as a terrorist organization.

Cypriot Police created and put into practice a screening watchlist mechanism. The Police's Counterterrorism Office is watchlisting, among others, all the persons subject to travel bans and asset freezing sanctions by UNSCRs and EU decisions concerning terrorism.

Countering Terrorist Finance: Cyprus is a member of Moneyval, the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism, a Financial Action Task Force-style regional body, and its Financial Intelligence Unit is a member of the Egmont Group. The United States and Cyprus cooperated closely on anti-money laundering/ combating the financing of terrorism. Cypriot authorities have taken legislative steps to counter and suppress such activities. The Cypriot Anti-Money Laundering Authority implemented new UNSCR 1267/1989 and 1988 listings immediately and informally tracked suspect names listed under U.S. E.O.s. The Cypriot government maintained a "Prevention and Suppression of Money-Laundering Activities Law" that contained provisions on tracing and confiscating assets. For further information on money laundering and financial crimes, we refer you to the 2013 International Narcotics Control Strategy Report (INCSR), Volume 2, Money Laundering and Financial Crimes: http://www.state.gov/j/inl/rls/nrcrpt/index.htm.

Regional and International Cooperation: Cyprus participated in counterterrorism initiatives by regional and multilateral organizations, including the UN, the OSCE, and the Global Initiative to Combat Nuclear Terrorism. During the Cypriot presidency of the Council of the EU, from July to December 2012, Cyprus chaired the Working Party on International Aspects of Terrorism (COTER) and the Terrorism Working Party (TWP).

The Cyprus COTER chair focused discussions on cooperation in capacity building, intelligence and threat analysis briefings; developments in the Global Counterterrorism Forum; and promotion of human rights while countering terrorism. Other priorities of Cyprus' presidency included exchanging views on international developments, such as the outcome of the Third Review of the UN Global Counter-Terrorism Strategy, and the prospect of creating a single UN Counterterrorism Coordinator position. Progress was made towards finalizing the EU Counterterrorism Action Plan for the Horn of Africa and Yemen. As COTER chair, Cyprus also participated in EU political dialogues held under the European External Action Service Chairmanship, including: individual counterterrorism dialogues with Russia, the United States, and the UN; and the counterterrorist finance dialogue with the United States.

Cyprus' Presidency Program for the TWP led to approval by the EU Council of Ministers of updated EU implementation plans and documents in a number of areas, including protection of soft targets, countering violent extremism, and aviation security. Cyprus' TWP Chair organized an EU conference in Nicosia on October 31, to raise awareness about the importance of protecting aviation from terrorist attacks, and to strengthen cooperation between all public and private services to collectively address this risk. The Cypriot Police's Counterterrorism Office also participated in the EU Police Working Group on Terrorism.

Countering Radicalization and Violent Extremism: One of the initiatives of Cyprus' EU presidency in the TWP was revising the EU implementation plan for its Radicalization and Recruitment Action Plan and assessing implementation by each member state. Cypriot Police (CNP) started to implement the different measures of the Action Plan, and also focused on educating police officers about violent extremism. The Counterterrorism Office participated as a partner to the Community Policing and the Prevention of Radicalization (COPPRA) project that was initiated by the Belgian presidency of the European Council; the COPPRA training manuals were fully incorporated into the training programs on violent extremism that were created and implemented by the CNP's Counterterrorism Office.

The CNP Counterterrorism Office provided training programs to prison staff to identify violent extremism in prisons. Under the Radicalization and Awareness Network, the European Commission also provided special training programs and seminars to social workers, health care officials, and other service providers.