Central Bank of Cyprus as regards press reports on FBME Bank Ltd (Cyprus brach) in administration

Regarding recent press reports in connection with the FBME Bank Ltd Cyprus branch, which has been under resolution since July 2014, due to the adverse effects sustained by its operations as a result of the Financial Crimes Enforcement Network’s (FinCEN) action, of the US Department of Treasury, of naming the bank as a primary money laundering concern, the Central Bank of Cyprus (CBC) – in its capacity as the Resolution Authority – in its recent statement reiterates that all measures and actions taken in handling the situation stem from the existing national and European legal framework and aim, inter alia, at maintaining financial stability, safeguarding public interest and protecting depositors. Moreover, the CBC clarifies that it has taken initiatives and continues to exert efforts in cooperating with all stakeholders so as to reach an optimum solution, at the soonest possible, in order to service the aforesaid purposes, always within the framework of the relevant legislation.

The CBC regretfully notes that despite its repeated attempts, up until today there has been no desire for cooperation either from the bank in question or from persons connected to it, or from the Tanzanian supervisory authority, which is the country of incorporation of the branch. On the contrary, the CBC is faced with repeated actions that do not contribute in the right direction. Specifically, the bank and its connected persons have issued public announcements and attacks against the CBC and its personnel, which are totally outside every banking practice and norm. For the purpose of protecting the interests of the Republic, the CBC did not comment on the specific allegations that have been stated in press reports, as well as by the bank directly, as these are subject to judicial and international arbitration proceedings, which are in progress.