FBME Bank

History

The bank was founded in 1952 in Lebanon, as the Federal Bank of Lebanon SAL. In 1982 Federal Bank of the Middle East was established in Cyprus as a subsidiary of the Federal Bank of Lebanon SAL. In 1986 Federal Bank of the Middle East changed its country of incorporation to the Cayman Islands and its banking presence in Cyprus was transformed to that of a branch of the Cayman Islands entity. Since 1993 it had maintained a Representative Office in Moscow.

In 2003, Federal Bank of the Middle East terminated its banking presence in the Cayman Islands and established its parent company and operational headquarters in Tanzania. At the same time, its Cyprus operations became a branch of Federal Bank of the Middle East, Tanzania.

In 2005 the Federal Bank of the Middle East Changed its name to FBME Bank. FBME Card Services Limited (FBMECS) was incorporated in 2002 and in 2004/5 took over the Card Services operations of FBME Bank.

Controversy

In 2014 the Financial Crimes Enforcement Network accused FBME, which operates primarily in Cyprus, of facilitating financial transactions for multinational organised crime organizations and Hezbollah. The Central Bank of Cyprus took over management of the bank and appointed Mr. Dinos Christofides as administrator, who was later replaced by Andrew Andronicou and thereafter Andronicou was replaced by Chris Iacovides.

In May 2015, the International Chamber of Commerce's Arbitral Tribunal called on Cypriot banking authorities to abstain from taking any measures that would destroy irrevocably the business of FBME Cyprus pending completion of arbitration. The request for Interim Measures had been filed by Ayoub-Farid Michel Saab and Fadi Michel Saab, owners of the bank and claimants in the dispute against the Republic of Cyprus. FBME Bank said this confirmed Procedural Order No. 1 by inviting the Republic of Cyprus to refrain from proceeding to the sale or the resolution of FBME Bank before the end of this arbitration and put Cypriot financial authorities under obligation to notify any further measure regarding FBME Cyprus 30 days in advance, and that Cyprus could no longer act in isolation and put all interested parties before a fait accompli. Further, FBME, the Arbitral Tribunal, and Messrs. Saab, owners would be in a position to react before a decision was final, and have an opportunity to take all measures and legal actions that they deemed appropriate.

On December 21, 2015, the Central Bank of Cyprus revoked the branch license of FBME bank in Cyprus.

After the deposit guarantee scheme was activated for customers with accounts in Cyprus, the bank's staff in Cyprus started a strike. In June 2016, staff agreed to assist with the administration of the deposit guarantee scheme and customers start receiving their money up to €100,000. There are in 2016 numerous court cases ongoing. The verdicts show a sense of predictability.

In April 2017, the bank appealed a ruling from a Washington, D.C. federal court which in effect cut off the bank from the American financial system.

On May 5, 2017, the Bank of Tanzania discontinued all banking operations of FBME Bank Ltd, revoked its banking business license, placed it under liquidation and appointed the Deposit Insurance Board as a liquidator.

On December 24, 2017, The Guardian reported that the United States Federal Bureau of Investigation – in connection with Robert S. Mueller III's investigation (into possible connections between the Russian government and the 2016 U.S. presidential campaign of Donald Trump) – had asked the Central Bank of Cyprus for financial information about FBME, specifically into information that the bank was used by wealthy Russians with political connections accused by the US government of money laundering. Bloomberg further reports that the Russia-related investigation into FBME was connected to a flow of illegal Russian funds into the New York real estate market.

A court order to liquidate the Cyprus branch of FBME Bank Ltd. was presented on June 29th 2023 by Judge Y. Kyriakidou of the Nicosia District Court.

Ownership

The shares of stock of FBME Bank were owned by Lebanese bankers Ayoub-Farid M Saab (50%) and Fady M Saab (50%).

Branch network

The bank maintains the following branches: ; Cyprus

1. Nicosia Branch - 90 Archbishop Makarios III Avenue, 1077 Nicosia, Cyprus Cyprus
2. Limassol Branch - Omiros & Araouzos Tower, 25 Olympion Street, 3035 Limassol, Cyprus Cyprus ; Tanzania
3. Main Branch at Samora Avenue, Dar es Salaam, Tanzania Tanzania
4. Zanzibar Branch - 19-1 Kisiwandui, Zanzibar, Tanzania Zanzibar
5. Arusha Branch - 47 Old Moshi/Haile Selasie Road, Arusha, Tanzania Tanzania
6. Mwanza Branch - Station Road, Mwanza, Tanzania Tanzania

; Russia

1. Moscow Representative Office - 7/11, 3rd Lusinovsky Lane, 119049 Moscow, Russia Russia

References

References

1. "Members of The Board of Directors".
2. "Business Times - News for business owners".
3. (8 August 2014). "Supreme Court clears path for FBME sale". [[Cyprus Mail]].
4. "FBME Bank latest news".
5. "Cyprus Weekly as quoted in In Cyprus.com: ICC asks Cyprus not to take further FBME measures (22 May 2015)".
6. "Gold News Cyprus: FBME says ICC decision positive (22 May 2015)".
7. "Response to the FBME Bank Ltd. White Paper - Legal Floris {{!}} Legal Floris". www.legalfloris.com.
8. "Only logical verdicts in FBME Bank court cases - Legal Floris LLC | Legal Floris LLC".
9. Rubenfeld, Samuel. (April 18, 2017). "Tanzania Bank Seeks to Avoid Being Cut Off From U.S.". [[The Wall Street Journal]].
10. (2017-12-24). "FBI investigates Russian-linked Cyprus bank accused of money laundering: Request for financial information may be connected to inquiries into possible conspiracy between Trump and Kremlin.". The Guardian.
11. (2017-12-16). "Banned Over Terror Clients, FBME Has Added Woe: U.S. Probe". Bloomberg.com.
12. (June 30, 2023). "FBME Bank Liquidation Approved".
13. "FBME Bank Profile".
14. "FBME homepage".