Category Archives: Uncategorized

FBME Ltd refutes fake news

7 July 2017

Recent articles published in both online press and local media make unsubstantiated and false claims alleging various wrongdoings by FBME. We, as FBME Ltd, totally refute the general sentiment of these articles as well as the specific accusations.

In the instances of claims being made with reference to third party audits, FBME Ltd would like to clarify, for the record, that all independent audits commissioned by the Bank or by Regulators completely exonerate the Bank of any general and/or specific wrong doings. Any claims to the contrary are deliberately misleading and intentionally false, with a clear aim of creating a false impression with both the public and official bodies.

We reserve our legal rights against these publications as well as against any entity that has illegally divulged confidential reports which are the property of the Bank. FBME Ltd will be taking all available legal actions against these publications who are publishing fake news. This fake news is unfortunately harmful to both the reputation of the Republic of Cyprus as well as to the Bank and its clients.

Update on D.C. Circuit Appeal

1 May, 2017

 On April 28, following expedited briefing and a week of deliberation, the D.C. Circuit denied FBME Bank’s request for emergency stay pending appeal.  Consistent with the extraordinary nature of the requested relief, the D.C. Circuit noted simply that FBME Bank had “not satisfied the stringent requirements for a stay pending appeal,” without addressing any of the specific merits questions that remain before it.  A copy of the order denying emergency stay is linked here.  It is worth emphasizing that the D.C. Circuit, in denying emergency stay, did not purport to resolve the merits of FBME Bank’s pending appeal of the judgment upholding FinCEN’s latest rule.  To the contrary, it the very same day issued an order setting forth a schedule for FBME Bank to brief its appeal.  A copy of that order is linked here.  FBME Bank is currently arranging for its appeal to proceed on an expedited basis so that the merits can be decided this fall.  In the meantime, FBME Bank respectfully asks that all concerned be patient and await decision by the appellate tribunal before considering the outcome of FBME Bank’s challenge in the United States to be final.

Stay Pending Appeal

25 April 2017

 On Friday, April 14, 2017, Judge Cooper of the U.S. District Court for the District of Columbia issued his final judgment in favor of FinCEN, upholding its Second Final Rule and denying reconsideration that FBME Bank had sought on certain points. To read, press here.  At the same time, Judge Cooper lifted his preexisting stay and denied a full stay pending appeal. To read, press here.  Consistent with its rights to seek appellate relief from the U.S. Court of Appeals for the D.C. Circuit, FBME then sought and obtained from Judge Cooper on Monday, April 17, a temporary, administrative stay of the Second Final Rule that will remain in place for at least 14 days (i.e., through Monday, May 1); that temporary stay ensures that the D.C. Circuit has time and opportunity to consider FBME’s stay request. To read, press here. Also on Monday, April 17, FBME initiated its appeal to the D.C. Circuit, press here, and filed an emergency motion asking the D.C. Circuit to reinstate a full stay pending appeal; if granted, such a stay would remain in place and protect FBME against implementation of the Second Final Rule until its appeal is resolved. To read, press here.  The D.C. Circuit quickly ordered FinCEN to respond to FBME’s request for emergency stay by Friday, April 21, and FBME to reply by Monday, April 24. To read, press here.  Consistent with that schedule, FinCEN has filed its stay opposition, press here, and FBME has filed its reply, press here, such that FBME’s request for stay pending appeal is now fully briefed, under submission, and awaiting ruling by the D.C. Circuit.  FBME will report further on developments surrounding its stay request at the D.C. Circuit.

Update on US Proceedings

April 19, 2017

On Friday, April 14, 2017, Judge Cooper of the U.S. District Court for the District of Columbia issued his final judgment in favor of FinCEN, upholding its Second Final Rule and denying reconsideration that FBME Bank had sought on certain points. To read, press here.  At the same time, Judge Cooper lifted his preexisting stay and denied a full stay pending appeal. To read, press here.  Consistent with its rights to seek appellate relief from the U.S. Court of Appeals for the D.C. Circuit, FBME then sought and obtained from Judge Cooper on Monday, April 17, a temporary, administrative stay of the Second Final Rule that will remain in place for at least 14 days (i.e., through Monday, May 1); that temporary stay ensures that the D.C. Circuit has time and opportunity to consider FBME’s stay request. To read, press here. Also on Monday, April 17, FBME initiated its appeal to the D.C. Circuit, press here, and filed an emergency motion asking the D.C. Circuit to reinstate a full stay pending appeal; if granted, such a stay would remain in place and protect FBME against implementation of the Second Final Rule until its appeal is resolved. To read, press here.  The D.C. Circuit has ordered FinCEN to respond to FBME’s request for emergency stay by this Friday, April 21, and FBME to reply by this Monday, April 24, such that briefing will be completed a week before the temporary stay expires. To read, press here.  FBME will report further on developments surrounding its stay request at the D.C. Circuit.

Cyprus Administrative Court Orders Access to Relevant Documentation to FBME’s Lawyers

4 December 2016

On 29 November 2016 Cyprus’s Administrative Court, hearing the FBME case against the Central Bank of Cyprus (CBC), has ordered CBC, as the Republic’s Resolution Authority and Resolution Committee, to allow FBME’s lawyers to have access to key documents related to CBC’s takeover of the Cyprus branch of FBME in July 2014.

CBC has been given seven days to comply with the order.

The order, which represents an important breakthrough in the legal proceedings, gives the FBME legal team the opportunity make a review of correspondence, reports and other documentation related to the case.

This is part of the continuing of legal actions regarding measures taken against FBME in 2014 and subsequently.

Proceedings in the Cyprus courts, at the Arbitral Tribunal of the ICC in Paris, and legal action in the US, are underway.

FBME welcomes U.S. Court’s decision to remand back to FinCEN while continuing to stay final rule

21 September 2016

 We welcome the Court’s decision to continue to stay FinCEN’s Final Rule against FBME Bank while recognizing persisting questions as to its validity.  All along, FBME has contended that FinCEN failed to provide proper notice and substantively justify its damaging measures against FBME.  Following Judge Cooper’s latest ruling, we remain committed to pursuing fast, successful resolution—or else, failing that, to carry our legal challenge through to the finish.  FBME’s foremost goal is to put this matter behind it and resume its orderly operations, for the sake of its depositors, its employees, and countless others who depend on it.  Towards that end, the Bank remains ready and eager to work constructively with FinCEN along with all other responsible regulators.

Ayoub Farid Michel Saab

Chairman FBME Ltd

Clarification: The ICC’s International Arbitral tribunal orders the Republic of Cyprus to permit access to FBME’s Premises to the Bank’s Owners and Directors

7 August 2016

By two decisions dated 27 May and 26 July 2016, the Arbitral Tribunal constituted in the ICC arbitration opposing Messrs. Ayoub Farid Michel Saab and Fadi Saab, the owners of FBME, to the Republic of Cyprus, decided that the Claimants shall be granted access to the premises of the Branch during regular business hours.  Various public statements have recently been issued by the Cypriot authorities in relation to these decisions.  These statements can only be characterised as misleading.

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ICC’s Arbitral Tribunal Orders CBC to Permit Access to FBME’s Premises to the Bank’s Owners and Directors

1 August 2016

The Arbitral Tribunal at the International Chamber of Commerce (ICC) in Paris has ordered the Republic of Cyprus to grant the shareholders and directors of FBME Bank access to the FBME premises in Cyprus. They were excluded on 31 March 2016 at the same time as the Central Bank of Cyprus (CBC) sacked 140 FBME employees in Cyprus.

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