19 August 2014

Shareholders of FBME Bank will use every legal avenue available to challenge the legality of Central Bank of Cyprus’ decision to mandate the sale of its Cyprus branch.

This is a clear case of the Central Bank of Cyprus exceeding its powers.

The Central Bank has ignored recent audits showing that FBME Bank is compliant with anti-money laundering requirements of both the Central Bank of Cyprus and all relevant EU Directives.

The Central Bank’s decision is highly damaging not just to FBME Bank but to the banking sector of Cyprus as a whole.  We believe that the spurious justification for putting FBME Bank up for sale masks an effort by other parties to achieve a hostile takeover of the healthiest and most liquid financial institution in Cyprus using the powers of the state.

We will use every legal avenue available to prevent the sale and hereby place on notice any potential buyers that they should be aware of these circumstances.