Procedures to file a claim for FBME DGS changed

Since the Deposit Guarantee Scheme for FBME Bank in Cyprus was activated in April 2016 not much happened towards payout. Employees of FBME started a strike, making it impossible to verify the correct balance on the account of the banks’ customers.

A peculiar situation since FBME Bank was placed under resolution in 2014. This means that the bank cannot make own decisions anymore and that effective management is executed by the central bank. It is notable that employees of the bank have power, especially having in mind that opening of the bank became impossible after the verdict in case 1:15-cv-01270 (FBME Bank Ltd. et al vs LEW et al) from October 2015.

Obviously all stakeholders want this tragedy to come to a positive end. It is therefore understandable that the central bank of Cyprus and the employees from FBME Bank try to find a workable solution. In order to be able to resolve the payout delays with the DGS, the procedures to file a claim for FBME DGS changed. Although this is a very strange situation because the DGS is an external guarantee where participating banks like FBME, should not be part of, it might bring payout to customers soon.

The payout procedures are explained in this article. In short, FBME Bank customers still have to present themselves in person at the central bank but they also need to visit FBME Bank to verify and authenticate their documents. It is at this stage in the process premature to make any conclusions.

In need of help to file your claim and pave your way unscathed through this labyrinth, contact us for our no cure no pay FBME recovery services.

It is based on the current circumstances highly unlikely that the Cyprus Deposit Protection Scheme for account holders of FBME Bank in Cyprus stays active for the proposed two year period. To avoid chaos it is recommended to solver your issues with the bank at shortest notice. Please keep in mind that the central bank and FBME Bank can request additional documents for verification purposes and that the changes in procedures might delay the payout processes further.