FBME Bank Cyprus is a branch of the Tanzania head office. The 18th of April 2016, the central bank of Cyprus in their position as controlling agency of banks and other financial institutions in the country, activated the Cyprus Deposit Protection Scheme that covers customer deposits at participating banks and branches of foreign banks in the country up to 100.000 Euro.
In an official statement the central bank said: ‘The Central Bank of Cyprus has established and has informed the Committee that FBME Bank Ltd – Cyprus Branch for reasons relating to its financial condition does not appear for the time being able to repay deposits to its clients and also deems that FBME Bank Ltd – Cyprus Branch will not be able to do so in future.’
The Cyprus Deposit Protection Scheme is initially opened for a period of two years. Due to the stubborn attitude and unwillingness of FBME employees to assist the administrator in his duties, it is recommended to file a claim with the Cyprus Deposit Protection Scheme as quickly as possible.
There are rumours that the central bank of Cyprus plans to apply a haircut and confiscate funds on FBME accounts that exceed the 100.000 Euro level. There are no pointers or leads towards this scenario. It seems to be part of the strategy of one of the stakeholders in an effort to discredit the central bank:
- FBME Bank customers cannot claim more than 100.000 Euro from the Deposit Protection Scheme.
- FBME Bank customers cannot claim this 100.000 Euro twice (once from the deposit protection scheme and once during the liquidation of the bank).
- The central bank of Cyprus took over control of FBME Bank in 2014 as one of their responsibilities to protect customer deposits and prevent a bank run. Part of this resolution is that the central bank is in control of FBME and can act as management of the bank without having to ask for any approval of any stakeholder. The statement of particulars that needs to be completed to receive payout from the DGS therefore does not violate any law.
To conclude; FBME customers in Cyprus with funds that exceed the 100.000 Euro level will not receive the surplus from the central bank. The regular liquidation of FBME Bank has to be agreed upon by court. The judge appoints a liquidator and then the processes to payout the depositors that have more than 100.000 Euro can start. Since there is short term liquidity, long term liquidity and blocked assets, payout will happen in tranches.
Claim your funds via the Cyprus Deposit Protection Scheme
To successfully file a claim at the Cyprus Deposit Protection Scheme, the beneficial owner of the account has to present himself and his original passport in person at the administrator of the Cyprus Deposit Protection Scheme, the central bank of Cyprus.
If the beneficiary of the account at FBME Bank is a company, then the person known in the records of FBME Bank as the ultimate beneficial owner of the company and account is allowed to act as a proxy on behalf of the company. A proxy does not mean that someone else can represent the beneficial owner.
To validate the authenticity of the company, the beneficial owner needs to present official documents containing the name and registration number of the company, the date of incorporation, the address and obviously the beneficial owner of the company. It is often not necessary to order new company documents. Original incorporation documents with the right information is sufficient. It is however recommended that you verify the documents upfront with a trusted and reliable source with experience in bank failures.
The central bank of Cyprus is located at John Kennedy 80 in Nicosia. The Deposit Guarantee Scheme is open on weekdays between 8am and 13pm. Before you plan your trip, check the public holidays or bank holidays in Cyprus to avoid disappointments.
Contact us for No Cure No Pay Recovery Services
Deposit Guarantee Claim is founded to assist customers who experience losses in bank failures with the recovery process of their funds. Due to background and experience we are confident enough to charge you a no cure no pay recovery fee based on the results we deliver.
The recovery process covers the initial deposit on the FBME Bank accounts. If the balance on the account at FBME exceeds the insured amount, we will assist during the liquidation stage as well. At the end of the process we will issue a claim of liability on your behalf. Each stage in this process is handled under the same strict financial parameters, our invoice is send afterwards.
Obviously we choose our clientele with care. We cannot work for everyone and therefore reserve the right to reject your wish for representation. Leave your contact information in the contactform below and one of our representatives will call you at short notice.