about 0.6 times the size of Connecticut
the ROC financial system is vulnerable to money laundering by domestic and foreign criminals; proceeds generated by illicit activity abroad pose a greater threat; primary sources of illicit proceeds are investment fraud, corruption, advance fee fraud, tax evasion, illegal drugs, and tobacco smuggling. Additionally, cybercrime, especially phishing, e-mail hacking, and ransomware use, continues to increase. Criminals have reportedly used ROC banks to launder proceeds, particularly from Russian and Ukrainian illicit activity.
hostilities in 1974 divided the island into two de facto autonomous entities, the internationally recognized Cypriot Government and a Turkish-Cypriot community (north Cyprus); the 1,000-strong UN Peacekeeping Force in Cyprus (UNFICYP) has served in Cyprus since 1964 and maintains the buffer zone between north and south; on 1 May 2004, Cyprus entered the EU still divided, with the EU's body of legislation and standards (acquis communitaire) suspended in the north; has had maritime/economic exclusion zone disputes with Turkey, particularly over energy exploration