Cyprus Mail
Business Cyprus

Administrative Court denies FBME application for an injunction

The Supreme Court

The Central Bank of Cyprus said that the Administrative Court rejected an ex parte application filed by FBME Bank for an injunction against the supervisory authority’s December 21, 2015 decision to revoke lender’s Cyprus branch licence.

“The court said in its ruling that FBME failed to substantiate its allegations in favour of suspending the Central Bank of Cyprus’s decision, while it noted that the Central Bank of Cyprus’s decision to revoke FBME’s licence was reasonable,” a spokesperson of the bank supervisor said in an emailed statement on Thursday.

The Central Bank of Cyprus announced its decision to revoke the banking licence of FBME, the Tanzania-based lender, ten days after it imposed a €1.2m fine citing the bank’s failure to comply with anti-money laundering regulations. The U.S. Finance Crimes Enforcement Network, a division of the Department of Treasury reaffirmed in March its decision to ban the country’s banks from opening or maintaining correspondent accounts with the bank it accused of dealing with Hezbollah, the Lebanese militant group linked to terrorism.

The administrative court adjudicates cases involving complaints against administrative bodies. Its rulings can be challenged at the Supreme Court.

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