FBME calls on CBC to rescind decision to sell branch
FBME Bank Cyprus has called on the Central Bank of Cyprus to rescind its decision to shut the branch and sell its assets.
In a public comment from FBME’s lawyers, Hogan Lovells, in relation to the submission to the US Department of the Treasury’s FinCEN bureau in Washington, it said that the the forensic accountants from Ernst and Young in their assessment of FBME’s compliance programme observed that the bank’s procedures “incorporate the requirements” of the relevant laws.
“These laws are the EU’s Third Money Laundering Directive and the fourth issue of the Central Bank of Cyprus’ directive to credit institutions”, said the announcement.
The EU assessment further reported that the FBME has “protocols in place that allow the bank to continuously keep the programme aligned with these legal requirements”.
As the public statement makes clear, the FBME has restated its commitment to continuing to cooperate with the governments of the US, Cyprus and Tanzania in the fight against money laundering and terrorist financing.
“Recommendations have been made in areas where its compliance programme can be improved, which the bank has already committed to implementing”, says the statement.
The submission of the full forensics report is expected to take place over the next 60 days.
At the same time, FBME’s shareholders called for a change of policy on the part of the Central Bank of Cyprus.
“The Central Bank needs to rescind the Resolution measures on the Cyprus branch, to allow depositors to have access to their funds on a proper basis, and to abandon ideas of an expropriation and sale of the Cyprus branch”, the announcement said.
On July 21 the Resolution Authority issued a Decree, which placed the branch of FBME Bank Ltd in Cyprus under resolution, with the purpose to sell the operations of the branch “with the aim of protecting FBME depositors”, after a US Treasury report implicated the bank in money laundering.