FBME staff strike may delay deposit payouts

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FBME staff strike may delay deposit payouts
 © In-Cyprus 2020
The ongoing strike action by FBME Bank staff in Cyprus could spell delays in paying out deposits to FBME depositors.

According to a statement by the Management Committee of the Deposit Guarantee and Resolution of Credit and Other Institutions Scheme (DGS), due to the strike declared on 11 April at FBME Bank Ltd – Cyprus Branch “and the lack of cooperation by FBME, the Special Administrator is not at present able to proceed with the identification of the depositors and the certification of relevant documentation at the premises of FBME, as provided in the relevant activation procedure announced on 9 April 2016.”

The DGS has asked that depositors go in person directly to the offices of the Central Bank of Cyprus in Nicosia.

“Therefore, as a result of the above, the Management Committee of the DGS shall not be held responsible for any problems or delays arising from the said procedure which clearly emanate from the aforementioned events,” it said in the statement.

On 31 March, the bank’s Special Administrator delivered signed redundancy notices to 136 FBME Bank staff members in Cyprus, covering the major part of the remaining employee base of FBME in Cyprus, citing cost cutting for this decision.

The CBC took over FBME’s management operations and initially placed it under resolution in July 2014 following an announcement by the US Financial Crimes Enforcement Network (FinCEN) naming FBME as a “financial institution of primary money-laundering concern”.

The US Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a final ruling at the end of March prohibiting US financial institutions from opening or maintaining a correspondent account for, or on behalf of, FBME Bank Ltd (FBME).


This article was automatically added to our system 12-4-2016

FBME staff strike may delay deposit payouts

The contents of this article including any associated images are © In-Cyprus 2020
Views & opinions expressed in this article are those of the author and/or In-Cyprus .

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