  The characteristic property of the Z2XZ2 orbifold compactification is the
cyclic permutation symmetry between the three twisted sectors. We discuss how
this property, which is retained in a class of realistic free fermionic string
models, may be instrumental in enabling fermion mass hierarchy while ensuring
sfermion mass degeneracy, irrespective of the dominant source of supersymmetry
breaking. The cyclic symmetry is reflected in some models in the existence of a
family universal anomalous U(1)_A. We analyze the FCNC and CP violation effects
in a model with a dominant U(1)_A SUSY breaking. In this theories, new sources
of FC are always suppressed with respect to the average sfermion masses. We
make a phenomenological analysis of these effects and find that in most of the
cases they are in qualitative agreement with the phenomenological limits. The
most sensitive low-energy observables to these new FC sources are the
$\epsilon_K$ parameter, measuring indirect CP violation in neutral kaon mixing
and EDMs. These observables set important constraints on the structure of the
sfermion mass matrices, but do not require a large fine-tuning of the initial
parameters and can be satisfied in most realistic constructions.
