Following a US Treasury report last week that implicated FBME bank in money-laundering activities, the Cyprus branch of the bank is under resolution – something that Government Spokesman Nicos Christodoulides has said displays commitment to the protection of the island’s financial stability.
A decree was issued Monday night by the Central Bank of Cyprus (CBC) with the objective of selling the operations of the branch in order to protect depositors.
The bank has said it commissioned a detailed assessment by the German office of a leading international accountancy firm into its operations and practices, which found the bank’s services in compliance with applicable anti-money laundering rules of the Central Bank of Cyprus and the European Union.
Mr Christodoulides said: “The Central Bank of Cyprus, as the Supervisory Authority, recommended to the Resolution Authority the taking of resolution measures related to the selling of FBME Bank’s operations, to protect the depositors. The Resolution Authority agreed with the recommendation and has taken the relevant decision. The above actions show the commitment of the independent institutions of Cyprus to safeguard financial stability.”
