The Central Bank (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.
The lender changed its country of incorporation numerous times, partly due to its inability to adhere to regulatory requirements.
“It has established itself with a nominal headquarters in Tanzania. However, FBME transacts over 90 per cent of its global banking business through branches in Cyprus,” FinCEN said. ...read more
