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Disputes - international:
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hostilities in 1974 divided the island into two de facto autonomous areas, a Greek Cypriot area controlled by the internationally recognized Cypriot Government and a Turkish-Cypriot area, separated by a UN buffer zone; March 2003 reunification talks failed, but Turkish-Cypriots later opened their borders to temporary visits by Greek Cypriots; a UN-brokered peace plan attempts to break the stalemate over final status before the Greek Cypriot area enters the EU in May 2004
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Illicit drugs:
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minor transit point for heroin and hashish via air routes and container traffic to Europe, especially from Lebanon and Turkey; some cocaine transits as well; despite a strengthening of anti-money laundering legislation, remains highly vulnerable to money laundering; identification of benefiting owners and reporting of suspicious transactions by nonresident-controlled companies in offshore sector remains weak
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