Nicosia, Cyprus. Cypriot authorities have not conducted investigations or taken interrogation measures in connection with an ongoing European VAT fraud probe, limiting their involvement to information sharing, according to sources familiar with the matter.
The investigation concerns suspected VAT carousel fraud involving small electronic goods and alleged money laundering across several EU member states.
Cyprus cooperation
Sources cited by the Cyprus News Agency said Cypriot authorities have cooperated through European Public Prosecutor’s Office mechanisms operating in EU member states and with EPPO’s central offices in Luxembourg.
Their assistance has so far been limited to sharing information, the sources said. Cyprus police have not carried out investigations on the island, nor have investigative or interrogation measures been taken.
The sources did not rule out further requests for assistance from European authorities.
Investigation in Greece
EPPO said its Athens office conducted searches and seizures at several locations in Attica and Kastoria last week as part of an investigation into suspected VAT carousel fraud and the laundering of criminal proceeds.
The investigation began nearly a year ago and identified a network of companies established in Bulgaria, Cyprus, the Czech Republic and Greece that were allegedly used to trade small electronic goods across the European Union.
Alleged losses and asset freezes
According to EPPO, suspects allegedly used chains of so-called missing traders between 2021 and 2025 to distribute electronic goods in Greece and other EU countries while avoiding VAT payments or enabling fraudulent VAT reimbursements.
Investigators estimate that unpaid VAT caused losses of at least €46.9 million to the EU and Greek budgets. They also identified indications that a further €24.2 million in VAT was either not paid or incorrectly declared.
The investigation led to the freezing of cryptocurrencies worth about €900,000 and other digital assets valued at around €4.5 million. Greek authorities said this was the largest freezing of digital assets carried out at national level.
Freezing orders were also issued for 88 real estate properties estimated to be worth more than €4.5 million, as well as multiple bank accounts.
