Cyprus & World News

Cyprus says FBME bank resolution shows commitment to protect depositors

22 July, 2014

The decision to place the Cyprus branch of FBME Bank under resolution shows the commitment of the Cypriot independent institutions to safeguard financial stability, Government Spokesman Nicos Christodoulides stressed on Tuesday.
The Central Bank of Cyprus issued an announcement late Monday saying it had issued a decree by which it has placed the Cyprus branch of FBME Bank Ltd. under a state of resolution.
“The purpose of the decree is the sale of the operations of the branch with the aim of the protection of depositors,” said the decree, published in the official Gazette of the Republic and signed by the Governor Chrystalla Georghadji, CBC Council member Stelios Koiliaris and Senior Manager Yiorgos Syrichas.
“The above actions show the commitment of the independent institutions of the Republic of Cyprus to safeguard financial stability,” the government spokesman noted.
Last week, a US Treasury report implicated the bank in money laundering.
The lender sought to clarify its position with an announcement saying that “as a result of the financial uncertainty in Cyprus in the past two years, FBME Bank commissioned a detailed assessment by the German office of a leading international accountancy firm into its operations and practices, which found that the Bank’s services are indeed in compliance with applicable anti-money laundering rules of the Central Bank of Cyprus and the European Union”.
A response is expected from FBME Cyprus.

See Monday's report: Central bank takes over FBME Cyprus, bank says it's "shocked"