The Central Bank of Cyprus (CBC) announced on Friday it has taken over the administration of FBME Bank’s operations in Cyprus after the US government named the lender as a financial institution of primary money laundering concern.
“The Central Bank of Cyprus (CBC) announces that, based on the powers afforded to it by the relevant legislation, starting today, it has taken over the administration of the FBME Bank branch’s operations in Cyprus,” the CBC said in a three-line statement.
FBME, formerly known as the Federal Bank of the Middle East, is based in Tanzania, but, according to the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN), it transacts 90 per cent of its global banking business through branches in Cyprus.
FBME said it was “shocked” by the content of the US Department of the Treasury notice “that sets out unexplained allegations of weak AML controls,” which, the bank said, it had not been given any opportunity to comment on or refute.
The bank denied money laundering allegations, saying it had commissioned the German division of an international accountancy firm to carry out a detailed assessment into its operations and practices over the past two years. FBME, it said, was found in compliance with applicable rules on AML regulations of both Cyprus and the European Union.
(source: cyprus-mail)
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