FBME Ltd. Bank has two branches in Cyprus and Tanzania, but now Cyprus beach is closed due to the multi-factors. FBME Ltd. Bank originally is a private company but gained importance in the European Union through its services and products offered by FBME Ltd. This bank is attracted mainly by the international offshore customers and clients. This bank entertains both individual clients and cooperative groups.
The whole journey was going smoothly up to July 2014. In July 2015 FinCEN (Financial Crimes Enforcement Network) a bureau of the United States Department of the Treasury collected a data about the transactions of FBME. In its report, FinCEN stated that FBME is involved in international money laundering, financing terrorist activities and other financial crimes through with its clients through these transactions.
After these accusations, FBME faced acute crises and problems. Because of the revealing report by FinCEN, customers start their deposits withdrawal from FBME. Many national and international banks refused to cooperate with FBME due to some reservation about the transfer of money and trading of money. Bank was suffering from acute loss as customers and clients started the withdrawal of their deposits while income or input of bank was minimum, causing a situation of the bank run. In this situation, while input was minimum, the bank is spending much more on operation and management. Further people lost their interest in FBME Cyprus branch.
In this situation, central banks of Cyprus and Tanzania assumed the responsibility and administration. In the scenario of complex situation central bank of Cyprus and Tanzania decided to resolve the bank and selling its services to private sector. But the ownership of FBME Cyprus presented their case in front of ICC (international chamber of commerce) in the Republic of Cyprus against the resolution of the bank. Initially, ICC abandons the central bank of Cyprus and Tanzania from the resolution of the bank in August 2015.
FBME made many efforts to regain its reputation and trust of its customers and clients but of no vein. Bank was considered closed since July after the report of FinCEN in 2014. Insufficient clues and proves by FinCEN license of FBME Cyprus branch was canceled on 21, December. The Central bank of Cyprus and Tanzania restrict the transfer of money in and out of FBME for both Freudian and innocent clients just to restrict money laundering through transactions.
In this situation, account holder was unable to withdraw their deposits from banks. Different insurance schemes and policies offered by the central bank of Cyprus and Tanzania enabled true account holders to draw their deposits from banks other than FBME Cyprus branch.