Curtain falls for FBME as court denies request for rehearing

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By Stelios Orphanides

A US appeals court rejected the application of the owners of Tanzania’s FBME Bank for a rehearing of their rejected appeal on Tuesday.

“Upon consideration of the appellant’s petition for panel rehearing filed on October 25, 2017, it is ordered that the petition be denied,” the United States Court of Appeals of the District of Columbia said.

In April, the bank and the owners of FBME challenged the decision of the court of first instance not to overthrow the decision of the Finance Crime Enforcement Network (FinCEN), a division of the US Treasury, to ban the lender from transacting in dollars. In early October, the Bank of Tanzania, which five months earlier revoked the bank’s licence and placed it under liquidation, instructed FBME Bank to withdraw from the appeal, leaving FBME Ltd, the Cayman Islands-based holding company as the sole appellant.

Days later, a lawyer of FBME informed the appeals court that the Cayman company had been struck off the company register and could so not sue or be sued. The court dismissed the appeal on October 24 as FBME Ltd had no capacity to sue. The owners of FBME informed the court that they reinstated the company the following day and requested the rehearing.

FinCEN blacklisted FBME Bank after it described it as a financial institution of primarily money laundering concern. The lender maintained a branch in Cyprus which had its licence revoked by the Central Bank of Cyprus almost two years ago.

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About Author

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

  • Peter G

    So, the main culprit of money laundering in Cyprus is out of existence.

  • Bystander

    Shameful story of robbing a bank by country authorities with help of another country authorities.

    • Pc

      You obviously did not read the multiple stories of fraud and money laundering that went on in that bank. Also, what robbery? All the depositors get their money back and any loans will remain and can be paid back as per contract. If there are any funds that remain after liquidation, the money goes to the shareholders.

      As it stands, no-one will lose, except the people who committed the fraud.

      • Nemisis

        What fraud? Even your jaundiced comment only refers to ” the multiple stories”…Stories being a fictitious tale..Which this is…NOTHING EVER PROVEN

      • Mary O Connor

        When will the depositors get their money back?

        • Pc

          Up to 100,000 that has already been returned, provided the depositor filed the necessary paperwork (you can still do it). Any amounts above 100,000 will be given back after the bankruptcy has been sorted and the company has been wound down.