CBC re­voked FBME li­cense, as own­ers take le­gal ac­tion

Financial Mirror (Cyprus) - - FRONT PAGE -

The Cen­tral Bank of Cyprus an­nounced on Mon­day that it had re­voked the bank­ing op­er­a­tion li­cense of the Cyprus branch of FBME Bank, end­ing a long dis­pute over the Tan­za­nia-based bank’s sus­pected deal­ing with money laun­der­ing, ac­cord­ing to the US Trea­sury con­clu­sions.

But the bank, which had al­ready con­tested the CBC’s sus­pen­sion and ap­pealed to the Paris-based In­ter­na­tional Cham­ber of Commerce, re­sponded with a state­ment say­ing that it will launch a le­gal fight against the “un­founded CBC li­cense re­vo­ca­tion.”

“FBME Lim­ited has an­nounced that im­me­di­ate le­gal ac­tion is be­ing launched to con­test the re­vo­ca­tion by the Cen­tral Bank of Cyprus (CBC) of FBME Bank’s li­cense for its branch in Cyprus and is chal­leng­ing this De­ci­sion in front of Cyprus Courts,” it said.

“The re­vo­ca­tion, com­mu­ni­cated in a nine-page dec­la­ra­tion (on Mon­day), blames oth­ers for ac­tions caused and taken by the CBC Board over the past 17 months, which stem from CBC’s uni­lat­eral takeover and at­tempted sale of FBME Bank’s branch in Cyprus. FBME re­jects this Re­vo­ca­tion of Li­cence in its en­tirety.”

“CBC’s il­le­gal mea­sures against FBME, of which this is the lat­est, have led to law­suits in Cyprus and abroad, ex­pos­ing the Cyprus au­thor­i­ties to a spi­ral of claims for sub­stan­tial dam­ages and com­pen­sa­tion.”

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