CYPRUS: CBC revokes FBME license, owners take legal action

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.”