Customers of the Federal Bank of the Middle East (FBME) with an account in Cyprus can finally apply for a claim at the Cyprus Deposit Protection Scheme. This external guarantee works similar to an insurance policy and can pay victims of a bank failure when the insured event takes place. The insured event for FBME Bank Cyprus is the loss of the branch license of the bank and the situation where 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.
Due to the activation of the Cyprus Deposit Protection Scheme, customers of FBME Bank with an account in Cyprus can file their claim at the central bank of Cyprus. The central bank of Cyprus acts as the administrator of the Deposit Protection Scheme.
There is a lot of misunderstanding as to the role of the so called ‘Proxy’. A proxy is nothing more than the person holding the power of attorney from the company, whereas this power of attorney must be available in the administrative files of FBME Bank. It is from different perspectives, e.g. money laundering and identification, not possible to let a third person act on your behalf. If for whatever reason you are not able to travel to Cyprus to file your claim in person, the legal route during the liquidation stage of the bank can bring a solution. During this stage there are no further requirements for identification.
To create maximum certainty to receive the full amount on your account, you have to follow the rules and procedures. Sometimes it can be recommended to hire a thrid party for assistance with your claim. Having someone on your side who knows what they are doing is always beneficial.
When you need assistance to file your claim at the Deposit Protection Scheme for FBME Bank in Cyprus, you can follow this link for more information on no cure no pay recovery services in bank failures.