Wanted tax-dodger Michalis Voudouris will be spending the next three months in a cell in the north, according to Turkish Cypriot media.
Voudouris is being held awaiting trial on charges relating to a case of identity theft and illegal entry.
According to reports in the north, Voudouris crossed in 2012, showing fake travel documents to the officers at Ayios Dhometios checkpoint in Nicosia.
If found guilty, Voudouris is expected to be expelled to Turkey where he would face extradition back to the UK. Britain does not have an extradition treaty with the north.
According to Scottish news reports, British authorities are seeking to confiscate over €10m worth of his assets.
An arrest warrant for the 46-year-old was issued in 2012 after Voudouris failed to appear in an Edinburgh court to hear his sentence after pleading guilty to two cases of money laundering.
The British Cypriot had confessed in November 2012 to hiding over £10m (€12m) in accounts in Cyprus, Greece and Switzerland, collected from claiming VAT on bogus transactions. He originally faced charges of money laundering involving £45m (€54.4m), which was reduced following his confession.
Voudouris also pleaded guilty to a separate charge of hiding £1.2m (€1.5m) from the taxman.
He was released on bail but ended up skipping bail, doing a runner reportedly to the breakaway regime in the north which has no extradition treaty with Britain.