Central Bank activates deposit guarantee scheme for FBME

The Central Bank of Cyprus (CBC) announced on Saturday the activation of the deposit guarantee scheme for deposits held in FBME Bank Ltd – Cyprus Branch.

According to an announcement, the move was deemed necessary by the management committee on deposit guarantee schemes for banks (SEK).

“After taking note of the findings of the Central Bank of Cyprus that FBME Bank Ltd-Cyprus Branch does not seem at present able to return deposits to customers for reasons directly related to its financial situation and believes that it will not be able to do so in the near future, it proceeded to the activation of the Deposit Guarantee Fund for Banks and will pay compensation to the beneficiaries of FBME BANK Ltd-Cyprus Branch,” an announcement said.

The committee informs everyone affected that it has taken all necessary measures for the smooth process for the compensation of beneficiaries, as required by law. It added that the Deposit Guarantee Fund for Banks have sufficient resources to compensate all beneficiaries.

The maximum compensation amount for each depositor is €100,000 the announcement said, and the amount will be decided by the committee, depending on each person’s deposits but also on their obligations toward FBME bank.

The bank had its licence suspended in 2014 and revoked last December, by the CBC without naming the reason for its decision. On December 10, the central bank imposed a €1.2m fine on FBME citing money laundering and financing of terrorism, allegations the Tanzania-based lender also faces in the US. A special administrator was appointed to oversee the scope of CBC’s investigations into money laundering allegations.

The committee will accept applications for compensation as of Monday.

For more information, depositors of FBME BANK Ltd-Cyprus Branch may call 22 714100, 22 714570, 22 714572 as of Monday. Office hours 11am until 1pm and from 3.30 pm to 5pm.

For online enquiries: [email protected]

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.