Cyprus granted licenses to export surveillance software abroad, evidence shows

Evidence obtained by Phileleftheros contradicts Ministry of Energy, Trade and Industry officials claiming Cyprus did not grant licenses for exporting surveillance software.

During a House Legal Affairs Committee session on two Ministry officials, including its deputy director, Loukis Simeonides, denied granting licences to export surveillance software from Cyprus.

The issue came to the fore after a European Parliament Committee of Inquiry (PEGA) found that Cyprus became an export hub for surveillance software and that the government granted licenses to sell spyware to oppressive regimes.

Also, in 2019 local media reported that a ‘black spy van‘ was used in Cyprus to intercept data. The van was owned by WiSpear Systems Limited whose CEO is Tal Dillian, a former Israeli intelligence officer.

Evidence shows Ministry not telling the truth

However, Phileleftheros has obtained documents which refute the Cypriot officials’ statements. The document shows that in December 2021, the Ministry of Energy, Trade and Industry granted a license to a Nicosia-based company to export surveillance software to Israel.

The document describes the software as a dual-use product, describing it as an “interception equipment designed for the extraction of client device or subscriber identifiers (e.g. IMSI, TIMSI of IMEI) signalling or other metadata transmitted over the air interface).” The equipment’s value exceeded €200,000.

According to the license, the foreign-owned company in Nicosia was authorised to ship the product to an Israeli-based business entity. Also, the Ministry document shows that the dual-use product was intended to be re-exported from Israel to a third country.

Ministry official retracts statement during House session

Loukis Simeonides, the Trade Ministry’s deputy director was forced to retract his statement that the state did not grant licences to sell surveillance software abroad when Akel MP Aristos Damianou presented PEGA’s findings, indicating that Cyprus became a spyware hub.

Despite this, Simeonides reiterated that export licenses were granted for dual-use software that was not malicious, clarifying that they fell into two categories.

Another Ministry official responsible for issuing export licenses acknowledged that the software could be used for legitimate purposes and maliciously.

It’s important to note that the issue of exports remains contentious within the European Union. Export licenses are only required when transferring the software to a third country, as within the EU, no such license is needed.

Draft law to strengthen regulatory framework

Invited to speak during the session, the director general of the Deputy Ministry of Research, Innovation, and Digital Policy, Stelios Chimonas said that authorities are working on a draft law to strengthen the framework regulating the production of such software. He highlighted the proposed legislation’s provisions, which include establishing two different registers: one for companies dealing with dual-use products and a second one for the software itself.

Black van case

In another development, Police Chief Stelios Papatheodorou provided details regarding allegations that the force bought surveillance software from Abraham Sahak Avni’s company, NCIS, which was then tasked to investigate for its involvement in the black spy van case. Avni was never prosecuted for his role in the case.

Papatheodorou revealed that in 2010, the police decided to purchase a data extraction tool for electronic devices (UFED) and obtained a license to use it until 2013 for which it paid €9,500 to a foreign company. He further stated that in 2014, the police bought another license to use surveillance software and trained an officer to operate it.

Then, the entity dealing with the software told the police to make the payments to NCIS, because it acted as its representative in Cyprus. Additionally, in 2015, the police collaborated with NCIS, to launch a tender aiming to obtain the means to extract data from cameras.

It is noted that the Attorney General, the Minister of Energy, Trade and Industry, as well as the Minister of Justice, were invited to participate in the House session but did not attend.

Read more:

Democracy is in grave danger, says surveillance scandal rapporteur after visiting Cyprus