By Stelios Orphanides
The Nicosia district court has rejected the Central Bank of Cyprus’s application to appoint a liquidator at the Cyprus branch of Tanzania’s FBME Bank Ltd, two sources familiar with the matter said.
The decision came five days after Tanzanian authorities decided to revoke the lender’s licence and liquidate it following the latest US court ruling. The April decision affirmed the decision of the Financial Crime Enforcement Network (FinCEN) to ban the lender from opening and maintaining correspondent accounts with FBME.
FinCEN considers FBME as a financial institution of primary money laundering concern with links to Hezbollah, the Lebanese militia deemed a terrorist organisation in both the US and the EU.
A Central Bank of Cyprus spokesperson said that the Resolution Authority, which consists of the bank supervisor’s board of directors, has not yet studied the court’s ruling and will decide the next steps after it does so.