Business Corruption in Cyprus
Corruption is not an obstacle to business in Cyprus. There exists a strong legal framework to combat corruption: Bribery, facilitation payments and giving or receiving gifts are criminal offences under Cypriot law. The government implemented anti-corruption laws effectively and has developed effective e-governance systems (the Point of Single Contact and the e-Government Gateway project) to assist businesses. Nevertheless, the banking sector and politicians have a relationship that some sources claim has resulted in the economic crisis that Cyprus is facing today and that has contributed to corruption in some areas. There is also a lack of transparency in government tenders, and bias in the awarding of public tenders has been identified. Investors should take into consideration the political situation of the country, which divides the island into two parts: one controlled by the Cypriot government and a northern part under the administration of Turkish Cypriots.
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