CBC request to appoint FBME liquidator rejected

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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.

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About Author

Stelios Orphanides is a journalist at CyprusBusinessMail.com. To contact Stelios Orphanides: [email protected]

  • Nemisis

    I think it’s about time the author of this article began to print the whole story and not the bits his friends at the CBC want him to, something which is commonly called misinformation.
    This little passage: “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.” seems to appear in every article and appears to be a mantra held high and proudly as some sort of justification for it actions by the CBC and it’s tame journalists, yet after almost 3 years WHERE IS THE HARD PROOF?
    Why have no criminal charges ever been brought? Could the answer be that in a criminal court evidence has to be produced

    From other sources it seems that the Cypriot judge who rejected Central Bank of Cyprus’s application to appoint a liquidator also called into question both the lack of evidence regarding the allegations of money laundering made against the FBME Bank, and also the integrity of the CBC witnesses….I bet the Resolution Authority are “studying” the courts ruling!!!

    Happily it looks like the curtain is going to be drawn back on this disgraceful affair, in many countries journalists would be actively investigating how a Central Bank could oversee a bank for 30+ years yet quickly close it at the first suggestion of money laundering…Of course IF people in that Central Bank stood to gain from it’s closure and disposal of assets it would then be a different kind of investigation.

    • Theodoros D

      Used to send this author a couple of times the court proceedings in the US, but after I saw the way he presents his articles have stopped. I have formed the personal opinion that he might be biased and stopped providing official court documents.

      • Nemisis

        “might”…LOL

  • disqus_ZPlOdQqScB

    Stink gets worse daily