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Authorities committed to protecting financial stability

July 22, 2014



The decision to place FBME Bank under administration showed the authorities’ commitment to protect financial stability, the government said on Tuesday.

The Central Bank (CBC) announced late on Monday that it was placing FBME Bank in resolution to protect depositors after a US Treasury implicated the lender in money laundering activities.

The announcement came out after the Resolution Authority – including the finance minister and the Central Bank governor – issued a decree on the sale of FBME Bank's operations in Cyprus.

The “actions demonstrate the commitment of the Republic's independent institutions to safeguard financial stability," government spokesman Nicos Christodoulides said in a written statement.

Last Thursday the US Treasury accused FBME, which though chartered in Tanzania operates primarily in Cyprus, of facilitating financial activity for transnational organised crime and Hezbollah, calling it a "primary money laundering concern."

 

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Source: Cyprus Mail


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