There is not much to say about Cypriot based FBME bank. Since June 2014, banking operations still go on but customers are not able to freely transfer deposits on their accounts. It is inclear how the future will look like for the bank and its thousands of customers. It is clear that the existance is uncertain. Though times, that don’t seem to be gone soon.
Based on the information provided in the article FBME Bank latest on the website on the official Legal Floris website, you can find a shortcut to news on FBME bank here:
What happened? FBME Bank is a non-traditional bank and serves many high net worth individuals and offshore businesses with their banking facilities. FinCEN, a department of the US Treasury did a study on the bank and its operations. The study came with a rather bizarre conclusion; FBME Bank in Cyprus facilitated money laundering and enabled terrorism to fund their operations. It’s quite a heavy accusation. But still the Central Bank of Cyprus made some drastic measures: they appointed an Administrator and blocked outgoing payments.
What did FBME do? Obviosuly FBME will be damaged by this situation. Current customers will stop trusting the bank and potential new clienst will think twice before they become a customer.
FBME went to the ICC arbitration penal in an effort to protect current customers of the bank. No response was enough (yet) to remove the limits on outgoing transfers.
The Central Bank of Cyprus: Having offices in Nicosia and Limasol, FBME is under scrutiny of the Central Bank of Cyprus. Cyprus has to show to the European Union and Trojka that it is more than just another “banana republic” and therefore took immediate action.
Although the interfearance of the Central Bank is questionable, it still is unclear what is going to happen in the near future. The situation goes on for months now and the daily payment levels set by the Administrator are lowered again and again to prevent a bankrun.
What’s next? Customers and other stakeholders are positioned in a chicken and egg scenario. Nobody knows what is going to happen and although there are some solutions to transfer funds from a bank account, it is not the most easy thing to do. Basically, people just have to wait for things to change and have the risk of losing everything. Not the most ideal situation. Therefore it is recommended that customers study all potential possibilities in order to prepare for different scenarios.