Customers of FBME Bank in Cyprus can finally recover a substantial sum from their blocked account. Since the summer of 2014 the Tanzania based bank with a branch license in Cyprus was placed under resolution by the central banks due to suspected facilitation of a platform that enables customers to engage in fraudulent transactions, money laundering and even financing of terrorism. These accusations are drastic and had quite an impact on the customers, employees and even the general public.
Studying the minimal information that is available, there is some evidence that shows a lack of constant due diligence on behalf of FBME. Though, the questions that keeps on coming up is if FBME is not punished in an excessive way. Only a judge can decide if closing the bank is the best and only measure.
Since the Deposit Protection Scheme for FBME Bank Cyprus is activated, bank customers are invited to visit the central bank of Cyprus at their earliest convenience. The first two months were rather easy to be approved for payout. The 14th of July all changed though with stricter rules for application and additional requirements.
It is uncertain whether the Deposit Protection Scheme will stay open as initially expected. Especially now rules and requirements to file a claim seem to change periodically.