Disputes - international:
hostilities in 1974 divided the island into two de facto autonomous entities, the internationally recognized Cypriot Government and a Turkish-Cypriot community (north Cyprus); the 1,000-strong UN Peacekeeping Force in Cyprus (UNFICYP) has served in Cyprus since 1964 and maintains the buffer zone between north and south; March 2003 reunification talks failed, but Turkish-Cypriots later opened their borders to temporary visits by Greek Cypriots; on 24 April 2004, the Greek Cypriot and Turkish Cypriot communities voted in simultaneous and parallel referenda on whether to approve the UN-brokered Annan Plan that would have ended the thirty-year division of the island by establishing a new "United Cyprus Republic," a majority of Greek Cypriots voted "no"; on 1 May 2004, Cyprus entered the European Union still divided, with the EU's body of legislation and standards (acquis communitaire) suspended in the north
Refugees and internally displaced persons:
IDPs: 265,000 (both Turkish and Greek Cypriots; many displaced for over 30 years) (2004)
Illicit drugs:
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