Central Bank search FBME offices (Updated)

Central Bank of Cyprus (CBC) officers on Thursday carried out an investigation at the Cyprus branch of FBME Bank, seizing documents.
“The Central Bank of Cyprus, acting in its capacity as supervisory authority, has today commenced an onsite examination at the premises of the Cyprus branch of FBME Bank Ltd and FBME Card Services Ltd,” a short statement by the CBC read.
A police spokesman confirmed that, at the request of the CBC, police officers were present during the search. Various documents were taken, he added.
In a statement later in the day, the FBME shareholders confirmed the spot-check.
“Central Bank of Cyprus (CBC) has appointed a new set of investigators to audit the anti money laundering procedures at the Cyprus Branch of FBME. The advisers appointed by the Central Bank are international law firm DLA Piper, financial investigators Kroll and Cypriot lawyers Georgiades & Pelides,” the statement read.
The bank would “extend full cooperation to them in a further effort to clear the bank of allegations made last July,” it added.
“It hardly goes without saying that this action should have been taken nine months ago. Much damage to FBME depositors, associated companies, employees and to the bank itself could perhaps have been avoided. Additionally, the substantial expense incurred by the CBC on behalf of taxpayers in Cyprus could have been significantly reduced as well.”
The shareholders noted that by the end of last year the CBC conducted five separate investigations into the same subject carried out by auditors, including PwC.
“No results of these investigations have been ever made public by CBC. This is in addition to the usual annual audit by the Bank’s external auditors K Treppides and Co., and a special investigation carried out in 2013 by KPMG Germany.”
The statement revealed also that the Central bank has appointed Andrew Andronikou, a London-based turnaround specialist with UHY Hacker Young chartered accountants, as joint-Special Administrator of the Cyprus branch of FBME Bank following the earlier appointment of Dinos Christofides last July.
The CBC took over the Cyprus branch of the Tanzania-based bank last year, placed its operations under resolution and embarked on finding a buyer after the US Department of the Treasury named FBME as “a financial institution of primary money laundering concern”.
To date, FBME shareholders deny the allegations and have resorted to the arbitration court to have the liquidation and resolution orders lifted.

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