Cyprus CB secures FBME deposits up to €100,000

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Cyprus CB secures FBME deposits up to €100,000
 © In-Cyprus 2020
The Central Bank of Cyprus announced on Monday afternoon that it was guaranteeing deposits of up to €100,000 at FBME while the treatment of deposits above that amount were dependent on the appointment of a judicial special paymaster.

“Despite the well established principle of the Central Bank of Cyprus (CBC) not to make moves while there are lawsuits in progress, the CBC states that it has activated the process to cover guaranteed deposits up to €100,000 per depositor in accordance with the law”, it said.

It added that “obstacles were created by FBME” for the return of guaranteed deposits but that “every effort is being made to remove them”.

As for amounts in excess of €100,000, legal proceedings were under way to appoint a Special Paymaster to undertake the liquidation of assets in order to repay obligations as provided in the law, the bank said.

The process has been subject to delays owing to objections that have been raised by the FBME, the CBC said.

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).

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This article was automatically added to our system 11-4-2016

Cyprus CB secures FBME deposits up to €100,000

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