FBME bank is accused of large-scale money laundering. PHOTO | THE CITIZEN
By AGENCIES
In Summary
Tanzania’s central bank has revoked the banking licence for
troubled international lender FBME and placed it under liquidation after
it was accused of money laundering.
The Bank of Tanzania (BoT) appointed the Deposit Insurance Board
as the liquidator and appealed to FBME’s clients to be patient as the
Board puts in place a compensation plan.
"The liquidator shall, in due course, inform depositors,
creditors and debtors on pay out plan, debt collection and other similar
arrangements in line with the provisions of the law," said BoT said in a
statement on Monday.
In 2014, the US government accused the Dar es
Salaam-headquartered FBME of large-scale money laundering, sparking a
protracted legal battle between the two parties.
On March 25, 2016, the US Treasury's Financial Crimes
Enforcement Network (FinCEN) issued its final ruling, confirming FBME as
an institution of "primary money laundering concern."
On April 14, this year, a US court in Washington ruled in favour of FinCEN. The ruling put FBME out of business.
FBME said it would appeal the decision of the US court to uphold a ban on its operations in the country.
FBME is said to have been conducting most of its business in
Cyprus. It also maintains a representative office in Moscow and is
reportedly owned by two Lebanese brothers.
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