FBME Bank Update: Liquidation and Asset Recovery

FBME Bank was an international commercial bank. It offered commercial banking services and products to corporate and individual clients. FBME serviced clients worldwide through its Cyprus and Tanzanian branches.

As of September 2013, FBME was the largest commercial bank in Tanzania, with a total asset base valued at approximately TSh 4.4 trillion (US$2.716 billion), with shareholders’ equity of approximately TSh 291 billion (US$179.63 million)

In 2014 the Financial Crimes Enforcement Network accused FBME, which operates primarily in Cyprus, of facilitating financial transactions for multinational organised crime organizations.

The Central Bank of Cyprus took over management of the bank at that point. Funds were frozen for all bank accounts.

9 years on a Court Order has finally been issued on 29/6/2023, ordering the liquidation of the branch of FBME Bank Ltd in Cyprus and appointing Petros Ioannides as the liquidator of the branch of FBME Bank Ltd in Cyprus (the “Liquidator”) and as agent of the Deposit Insurance Board of the United Republic of Tanzania in Cyprus.

It is expected to liquidate and distribute all assets within a 6-month period.

Many offshore companies had bank accounts with FBME bank. Some have let their companies lapse (as they did not expect to receive any funds back), some have maintained them in good standing.

At Octopus, we are in direct contact with the liquidators to assist clients recover as many funds as possible.

We have several options available for clients looking to recover their funds.

If you need assistance, please do not hesitate in contacting us on +350 200 77779 or email us on info@octopus.gi

By Phil Cartwright

Frequently Asked Questions

What led to the liquidation of FBME Bank's Cyprus branch in 2023?

The liquidation of FBME Bank's Cyprus branch followed a court order issued on 29 June 2023, nearly nine years after the Central Bank of Cyprus took control due to financial crime allegations. The court appointed Petros Ioannides as the liquidator, aiming to liquidate and distribute all assets within a six-month period.

What was the main reason for FBME Bank's assets and accounts being frozen in 2014?

FBME Bank's assets and accounts were frozen in 2014 after the Financial Crimes Enforcement Network accused the bank of facilitating financial transactions for multinational organised crime organizations. This prompted the Central Bank of Cyprus to take over management of the bank.

How is the liquidation process for FBME Bank expected to proceed?

The liquidation process is expected to liquidate and distribute all assets of FBME Bank's Cyprus branch within a six-month period following the June 2023 court order. Petros Ioannides has been appointed to oversee the process as liquidator and agent of the Deposit Insurance Board of the United Republic of Tanzania in Cyprus.

How did the suspension of FBME Bank's operations impact offshore companies with accounts at the bank?

The suspension led some offshore companies with FBME bank accounts to let their companies lapse due to expectations of not receiving their funds back, while others maintained their companies in good standing in anticipation of possible asset recovery. The situation created uncertainty for account holders for several years.