The Shareholders of FBME have filed for an arbitration with the Arbitral Tribunal of the International Chamber of Commerce.
According to the announcement:
"This is in reference to the unilateral decision of the Central Bank of Cyprus to sell FBME Bank’s Cyprus branch, which the owners regard as a hostile takeover.
The arbitration invokes the Lebanese-Cyprus Convention on the reciprocal promotion and protection of investment, dated 5 June 2002 (law number 399). Article 6 of this Convention prohibits any nationalisation or expropriation of the assets of the citizens of either country. Article 12 states clearly that in any dispute the parties will endeavor to settle amicably, which has opened this route to the Paris-based International Chamber of Commerce, one of the world’s foremost professional bodies for arbitration.
The shareholders seek a resolution of the actions of the Central Bank of Cyprus and its Special Administrator in line with internationally recognised bi-lateral treaties.
Measures for the sale of the Cyprus branch of FBME Bank clearly come as an obvious and unjustified infringement of this Convention, especially in the absence of any litigation or conviction against the Bank.
These measures were issued under the Special Resolution Decree of the Central Bank of Cyprus which was designed for insolvent banks or those facing serious liquidity problems, not a healthy financial institution such as FBME Bank, where the financial position is sound and fully in line with capital adequacy and solvency requirements of the European Central Bank."
Supreme Court rejects FBME appeal
12 August 2014
The Central Bank of Cyprus has announced that the Supreme Court of Cyprus has rejected an appeal by FBME Bank Ltd for a preliminary injunction against the sale of its Cyprus branch operations.
The Central Bank took control of the bank's operations in July following money laundering allegations and intends to proceed with the sale of its operations.
Central Bank of Cyprus suspends sale of FBME Bank
5 August 2014
The Central Bank of Cyprus has announced it will suspend the sale of the operations of FBME Bank Ltd in Cyprus pending an appeal submitted to the Court by FBME.
FBME shall remain under resolution, announced the CBC and negotiations with interested buyers shall continue.
Central Bank of Cyprus extends suspension of operations of FBME Bank
25 July 2014
The Central Bank of Cyprus has announced it will extend the suspension of operations of FBME Bank Ltd in Cyprus by two working days, from 25 till 28 of July.
Hence, the branch of FBME Bank Ltd in Cyprus will not execute any client orders for transfers or other payments during the aforementioned period.
Central Bank of Cyprus suspends operations of FBME Bank
24 July 2014
Further to placing FBME Bank under Resolution, the Central Bank of Cyprus has decided to suspend the operations of the bank for two days, as of July 23.
No orders or money transfers shall be executed during this period.
Central Bank of Cyprus places FBME Bank under Resolution
23 July 2014
The Central Bank of Cyprus (“CBC”) has placed the Cyprus branch of the Federal Bank of the Middle East (“FBME”) under Resolution, following a report from the Financial Crimes Enforcement Network of the US Treasury that claims the bank is engaged in money laundering activities.
On the 18th of July, the CBC had taken over the management of the operations of the bank and announced its intention to sell the operations of the Cyprus branch of FBME with the aim of protecting the bank’s depositors.
Totalserve is closely monitoring developments concerning the bank and will be posting updates as soon as these become available.