‘TRNC’ acts as crime hub: Global report exposes sex trafficking and cocaine money laundering

A biennial expert report compiling the Global Organized Crime Index paints a damaging picture of the Turkish Republic of Northern Cyprus (“TRNC”).

One characteristic finding labels TRNC a “hub for sexual services trafficking.” This discovery concerning trafficking in human beings forms only one piece of a puzzle; a puzzle, unfortunately, constructed from a host of reports demonstrating that illegal activities in north Cyprus pose a severe threat to the Republic of Cyprus.

The Global Initiative Report

The Global Initiative Against Transnational Organized Crime based its analysis for Cyprus on Interpol statistics, compiled by 350 experts. The report documents a situation in northern Cyprus that threatens the Republic of Cyprus.

Almost every paragraph analysing crime sectors references north Cyprus. Human trafficking, illegal immigration, smuggling, and money laundering derived from cocaine distribution stand as just a few of the crimes attributed to the island’s northern section.

Illegal Immigration

Experts present “illegal migration” as one of two crime sectors where Cyprus records a high prevalence, placing the island 38th among 193 countries.

The experts pointedly address the negative impact of north Cyprus: «Migrants often enter Turkey legally before proceeding to the ‘TRNC,’ exploiting student visas issued by universities. Many then cross the UN Buffer Zone into the south of Cyprus to seek asylum. Authorities have tried to limit the inflow, intercepting vessels and tightening asylum policies, but smuggling networks remain resilient.»

Human Trafficking

The analysis of “human trafficking” gives north Cyprus significant mention. The report notes:

«Cyprus remains primarily a destination for human trafficking, with victims suffering sexual exploitation, forced labour, and other forms of criminal coercion. The country’s geographic location, at the crossroads of Europe, Western Asia, and Africa, makes it especially vulnerable to organised criminal networks involved in trafficking. Sexual exploitation remains the most prevalent form of trafficking, with victims mainly originating from Eastern Europe, Sub-Saharan Africa, Central Asia, and South and Southeast Asia. The ‘TRNC’ operates as a significant hub for sexual services trafficking, particularly in nightclubs that exploit women under coercive conditions. Forced labour also affects various sectors, including construction, domestic work, agriculture, and retail, with traffickers using debt bondage and threats of deportation to maintain control over victims.»

Cocaine and Casinos

How does a casino in north Cyprus link to cocaine distribution in Cyprus? Global Initiative experts interpreted the Interpol data as follows:

«Cyprus’s cocaine market remains significant but not pivotal in the global chain. Despite a reduction in overall seizures in recent years, criminal groups such as Turkish Cypriot gangs remain active in distribution. The tourism sector bolsters demand, with Limassol serving as a consumption hub. The ‘TRNC’ has become a central hub for laundering cocaine profits through casinos and gambling.»

The actions of criminal groups in Cyprus and the involvement of foreign individuals directly connect to north Cyprus, which maintains close ties with Turkey, a country ranked 10th on the Global Organized Crime Index.

The following verbatim notes from the report intensify existing concerns and confirm the overall findings:

«The ‘TRNC’ plays a crucial role in facilitating mafia-style activities, particularly as a drug transit point. Growing evidence suggests a link between Cypriot groups and international criminal organisations, including Russian and Polish networks.»

«The administration in the ‘TRNC’ has historically operated as a refuge for fugitives, tax evaders, and other criminals avoiding prosecution in their home countries.»

«Foreign actors/perpetrators play a significant role in the organised crime landscape in Cyprus, with individuals from Eastern Europe, Turkey, and the rest of Western Asia actively participating in various illegal markets. Russian criminal organisations remain influential in financial crimes, often linked to high-profile money laundering cases and offshore financial structures. Turkish criminals exert significant control over migrant smuggling, counterfeit goods trade, smuggling of excisable consumer goods, fuel smuggling, and cocaine trafficking. The ‘TRNC’ regions act as a primary hub for these activities, where limited regulatory oversight allows cross-border criminal activities to flourish.»

Financial Crimes

The self-styled “TRNC” again features prominently in the sub-chapter on financial crimes in Cyprus:

«Law firms, real estate companies, and financial service providers have become involved in facilitating money laundering activities, exploiting regulatory loopholes. In the ‘TRNC’, casinos and hotels operate as the primary vehicles for laundering proceeds from drug trafficking and other criminal enterprises. Reports suggest these activities extended into areas under the Republic of Cyprus’s effective control; however, regulatory measures remain inadequate to combat financial crimes effectively.»

Arms, Fuel, and Other Smuggling

North Cyprus receive similar attention in the analysis of smuggling in Cyprus, with the pseudostate being charged with arms trading, illicitly traded goods, cigarette smuggling, and, of course, fuel smuggling.

The experts’ exact findings regarding this large-scale global crime mapping programme, which the European Union funds and the US supports, are as follows:

Arms Trade: «Illegal weapons originate mainly from ‘TRNC’ areas and are smuggled into government-controlled areas via unofficial crossings.»

Illicitly Traded Goods: «Illicitly traded goods remain widely available in Cyprus, with the ‘TRNC’ acting as a main entry point for counterfeit products smuggled from Turkey. Criminal networks actively engage in this trade, primarily involving cosmetics, personal care products, clothing, accessories, electronics, and toys. Despite efforts to enforce regulations and cross-border cooperation, the market remains active due to demand and porous borders.»

Excise Goods: «The illicit trade in excisable consumer goods (e.g., tobacco) has surged due to economic differences between the ‘TRNC’ and areas under the Republic of Cyprus’s control. The Turkish Lira’s low exchange rate encourages the smuggling of tobacco products through the UN Buffer Zone, with most illegal tobacco products originating from the north. Seizures continue, with authorities regularly intercepting smuggling attempts at crossing points and unregulated routes.»

Fuel Smuggling: «Fuel smuggling constitutes the most significant form of non-renewable resource crime, driven by price differences between the ‘TRNC’ and areas under the Republic of Cyprus’s control. Smugglers exploit weak border controls and economic disparities to transfer fuel through the UN Buffer Zone, causing significant tax revenue losses. Authorities have strengthened enforcement measures, but the practice remains prevalent due to high demand.»

Illegal Timber

Crime concerning the environment includes a finding on illegal timber imports from Turkey: «Illegal logging occurs in protected areas, although under-reporting is suggested. Local traditions and timber needs fuel the demand for illegal wood. Although Cyprus represents a minor source of illegal wood, the market remains small compared to other environmental crimes. Recently, the increase in processed wood imports from Turkey has raised concerns regarding compliance with European environmental standards.»

Corruption and Resilience

Every one of the 193 countries is assessed on its resilience—a “resilience index” that reveals a country’s capacity to confront and recover from the effects of organised crime. Cyprus showed an improved picture in its 2025 assessment compared to 2023. However, the occupied territories remain the vulnerable point.

The report notes: «Cyprus has demonstrated an ability to maintain stability in leadership and governance.» It adds, «However, concerns remain regarding the extent of organized crime’s influence in the country. The leadership in the ‘TRNC’ has publicly committed to a “zero tolerance” stance towards organised crime, yet evidence suggests a high level of criminal activity within the administration.»

Transparency and accountability remain significant issues. Opinion polls show corruption is widely viewed as a serious problem, with a significant percentage of Cypriots expressing distrust towards state institutions. The establishment of an Anti-Corruption Authority and legislative provisions for whistleblower protection represent efforts to address these issues. Nevertheless, critics question the effectiveness of anti-corruption initiatives, particularly regarding enforcement and oversight mechanisms. In the ‘TRNC’, corruption and bribery are considered primary obstacles to effective governance, with reports of favouritism and nepotism in public sector appointments.

The Green Line Problem

The assessment of Cyprus refers to “ongoing challenges, particularly along the UN Buffer Zone (the Green Line) and maritime borders.” It explains that «the separation between areas under the Republic of Cyprus’s effective control and the ‘TRNC’ complicates territorial integrity, with the Buffer Zone acting as a corridor for smuggling and other illegal activities. Despite the implementation of technological surveillance measures, geopolitical constraints limit their effectiveness. The deployment of additional police personnel to patrol the Green Line attempts to bolster control, but smuggling activities persist.»