Cypriot banks to be audited ahead of bailout decision

Cypriot banks are to be audited to see if they are laundering money before there is agreement on their request for an EU bailout.

However, disagreements between the EU and the IMF are threatening to derail a bailout, even as nervous depositors are withdrawing funds.

The small island nation lost out heavily when haircuts were applied to Greek bondholders last year, pitching the economy and its banks into trouble and putting them in line to be the fifth EU country needing a bailout.