FBME Cyprus was for long time only visible for people with an interest or interference with offshore business and tax havens. The bank, which originated in Lebanon (hence the name Federal Bank of the Middle East) was huge in a specific segment of the market. With offices in Tanzania, Cyprus and a rep office in Moscow, the bank had presence in a specific part of the world. The banks' outgoing approach to corporate service providers, tax planners and trust offices made their appearance unique.
Although gossip and rumours got stronger, it took till 2013 that real action was taken. The FBME bank latest news is that over a few years period more than 4.500 suspicious wire transfers took place via American banks. When these numbers came out, the average amount per transfer was around 194.400 USD, Cyprus and Tanzania had to take action. There was no possibility to escape. Action had to be taken.
The Republic of Cyprus and its residents already had a hard time after Greece got into trouble. A second banking disasters would wipe away the position of Cyprus in the international financial world. Fortunately, Cyprus took professional action. The lack of information, and the propaganda by FBME Ltd. make it difficult for stakeholders to choose the correct side.
When you study the FinCEN report, which was the inducement for the Central Banks in Cyprus and Tanzania to place the bank under resolution, it gets clear that the only one to blame is FBME itself. It is insane that a bank can offer so many services that "normal" rated banks would not even think about to offer.
