FBME bank Cyprus branch possessed diversely distributed international clients and customers. Most of its customers run a legitimate company. FBME always remained an interesting business partner to companies founded or located in fiscally friendly jurisdictions and making use of sophisticated tax planning. The products offered by the FBME are totally according to the needs of this specific group. An additional advantage is that its many years of experience in this area of activities give an edge to FBME over other competitors of the same locality.
Most consumers not within the target clients of FBME probably are not familiar with the bank. This indicates that the bank takes its standard within the market very seriously, by only targeting its marketing toward potential clients. Most clients of FBME are offshore businesses and upper-class people who are introduced to the bank via a vast network of intermediaries.
In order to facilitate its international clients, FBME offers:
- Swift account services
- International money transfer services
- Credit facilities
- Finance trading
- Forex trading facilities
- Investment services
- Online banking
- International card services
FBME was well known for credit cards, back to back loans means loaning money back to the clients to generate Tex deductions in the residential country.
After the report of FinCEN in July 2014, FBME Cyprus faced many crucial circumstances. Central banks of Cyprus and Tanzania assumed the administration of bank. Bank was alleged by the FinCEN that it has been involved in money laundering and many other terrorist activities through its clients. Due to these circumstances, most of the international banks refused to allow any type of transaction and transfer of money with FBME. Many customers and clients preferred to withdraw their deposits from the bank due to the unusual circumstances. Further, due to rapid withdrawal of deposits (bank) run bank suffered loss as there was no input but the withdrawal was maximum.
On 21, December 2015 license of FBME canceled. But ICC and central banks of Cyprus and Tanzania as administration group ensured the account holders that their deposits are safe and they can withdraw their money via check up to December 2015 but at the not more than 1,000 Euros per week. Deposit insurance scheme like that of Deposit guarantee scheme (DGS) in European Unions, is activated by the central bank of Cyprus and Tanzania for the customers of FBME in April 2016. European Union banks offer Deposit Guarantee Scheme to their customers, meaning that in the case of the downfall of bank deposits of account holders remain safe. DGS not only favors account holder but also protect the bank from the bank run (rapid withdrawal of money by account holder), by restricting abrupt withdrawal by an account holder. Cyprus being part of European Unions also offers DGS. But customers must have render deposits of about 100,000 Euros’ in the bank. Customers can take their money via check from any bank; this service is started from April 2015.