US official: Cyprus on right track in money laundering fight

A US congresswoman says Cyprus is making headway in dispelling the notion that the east Mediterranean island nation's banks have acted as a laundry service for Russian oligarchs.

Rep. Maxine Waters, who chairs the House Financial Services Committee, says that US-Cyprus cooperation in tackling money laundering "is beginning to pay off."

She says although more work needs to be done, discussions with Cypriot officials during a bi-partisan visit to the country "leave us confident that Cyprus is up to the challenge."

Cyprus' finance minister on Friday hailed Waters' statement as recognition of Cyprus' progress and of its willingness work with other countries to combat money laundering.

Cyprus had been dogged by accusations that its banks were used to launder millions in ill-gotten gains, especially from Russia. [AP]