FBME bank problems

This blog is started due to the fact that there are still some FBME bank problems. Halfway Summer 2013 the Nicosia branch of FBME came under strict scrutiny by the Central Bank of Cyprus who mainly took over management and control. It is unclear whether what is going to happen with the bank, a bank which once was a strong and stable financial institution.

Founded in 1952 and rebranded in 1953 the Federal Bank of the Middle East became popular for offshore activities. It was one of the easiest European banks (outside the City) to park the bank account of an offshore company or other tax friendly vehicle.

The flexible introduction to offshore made the bank a welcome partner for thousands of businesses and wealthy individuals over the years. According to the latest numbers, the total asset base is valued at approximately US$2.716 billion. These numbers make a lot of financial institutions jealous instantly.

FBME bank problems mainly have to do with the way they enabled criminals to use the bank as a money laundering vehicle. The US Treasury – via FinCEN – even thinks the bank is involved in terrorism financing. Obviously this is not something corresponding banks want to deal with or have anything to do with. Therefore the banking operations simply stopped.

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