Arab Today, arab today cyprus looks for buyers for bank in us laundering probe
Last Updated : GMT 00:51:37
Arab Today, arab today
Arab Today, arab today

Cyprus looks for buyers for bank in US laundering probe

Arab Today, arab today

Arab Today, arab today Cyprus looks for buyers for bank in US laundering probe

FBME bank
Nicosia - AFP

Cyprus was looking for buyers to take over branches on the island of Tanzania-based bank FBME, which faces a US money-laundering probe, after placing the operation under adminstration.
The move by the Cyprus central bank late on Monday came in the face of historical allegations by key European Union partners that the island's once-bloated banking sector had been engaged in laundering money for Russian interests.
International creditors imposed a massive shrinking of the island's banking system in March last year, in what Cypriots widely regarded as a punitive move in return for an emergency 10 billion euro (13.5 billion dollar) bailout of state finances.
"The Central Bank of Cyprus, as supervisory authority, recommended resolution measures ... relating to the sale of operations of FBME Bank Ltd, to protect depositors," government spokesman Nicos Christodoulides said.
"The above actions demonstrate the commitment of the independent institutions of the Republic of Cyprus to safeguard financial stability," he added.
FBME, whose twin branches on the island are estimated to hold 1.7 billion euros in deposits, denies all charges of wrongdoing and has challenged the allegations from Washington.
In a statement late on Monday the Cyprus central bank said: "The resolution authority has issued a decree, under the powers conferred to it... which places the branch of FBME Bank in Cyprus under resolution."
It said the aim was to sell the assets of the two local branches of FBME, after it froze them on Friday, following US Treasury allegations that the bank was a "primary money-laundering concern".
- Mitigate the impact -
It said it hoped the central bank (CBC) taking control –- which it said it had instigated -- would be just a temporary blip in its operations.
"CBC staff members have been present at FBME Cyprus since July 18, monitoring and approving payment instructions," the bank said on Monday.
"It is intended that this will be a temporary measure to resolve the situation arising from the US Department of the Treasury announcement and will serve to mitigate the impact on the bank of the allegations that have been made,” it added.
FBME transacts over 90 percent of its global banking business through branches in Cyprus, according to Washington.
The head of the US Treasury Department's financial crimes enforcement network, Jennifer Shasky Calvery, charged last week that the bank promoted itself "on the basis of its weak anti-money-laundering controls in order to attract illicit finance business from the darkest corners of the criminal underworld".
She said the Treasury move, which effectively cuts the bank off from the US financial system, was a "necessary step to disrupt the bank's efforts".
"FBME 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," said Calvery.
She said FBME has taken active steps to evade oversight by the Cypriot regulatory authorities in the recent past.
The bank said it was making strenuous efforts to allay US concerns.
"In an effort to address the matter the Bank has instructed specialist advisors to engage with the US authorities with a view to resolving the issues and to temper the adverse impact of the announcement,” FBME said.
The management of the Cypriot economy remains under regular review by international lenders following the 2013 bailout which imposed a swinging austerity programme as well as the closure of the island's second largest lender and an unprecedented levy on deposits.
German allegations that the Cyprus banking system was a "casino" for Russians trying to convert "black rubles" into "white euros" were widely seen by Cypriots as a key motive for the most punitive bailout so far of any eurozone economy.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today cyprus looks for buyers for bank in us laundering probe Arab Today, arab today cyprus looks for buyers for bank in us laundering probe

 



Arab Today, arab today
Arab Today, arab today Ideen Belmahdy happy to be part of “ Fashion Star”

GMT 17:00 2017 Sunday ,26 February

Ideen Belmahdy happy to be part of “ Fashion Star”
Arab Today, arab today 17.4m tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4m tourists visit UAE in 2016
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 14:48 2017 Sunday ,26 February

$100 billion wasted trying to beat the market

GMT 12:06 2017 Sunday ,26 February

Britain banks on robots, AI to boost growth

GMT 12:00 2017 Sunday ,26 February

China to allow more IPOs to attract capital

GMT 06:31 2017 Sunday ,26 February

Consumer prices up in Canada
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 13:47 2017 Friday ,24 February

Rabia Fatima reveals role of "Facebook" in her career

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday