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Imposition of fine on FBME Bank Ltd (Cyprus Branch)

Thursday, 10 December 2015

The Central Bank of Cyprus (CBC), within the remit of exercising its supervisory role, may take, under subsection (6) of section 59 of the Prevention and Suppression of Money Laundering Activities Laws of 2007 to 2013, all or any of the measures listed therein in the event of non-compliance by a supervised person with the legal and regulatory framework for preventing and combating money laundering. The decision is based on the procedures and principles of administrative law, therefore the CBC, inter-alia, provides the person concerned the opportunity to be heard before taking a final decision.

Therefore the CBC, by a decision dated 9 December 2015, decided to impose sanctions in the form of a fine on FBME Bank Ltd (Cyprus Branch) amounting to €1.200.000 for failure to comply with sections 58, 60(d), 61(1), 62(6), 64(1)(c), 64(2), 68C, and 68(1) of the Prevention and Suppression of Money Laundering Activities Law of 2007 to 2013, paragraphs 2, 3, 18(iv), 18(ix), 27, 28-30, 38, 42, 54, 55, 72-77, 87-95, 103, 104(viii), 124, 129(ii), 129 (iii), 149, 160, 162-168, 186 and 214 of the Directive issued by the CBC for the Prevention of Money Laundering and Terrorist Financing, December 2013 (Fourth Edition) and articles (4) and (5) of the Regulation (EC) No. 1781/2006 of the European Parliament and of the Council on information on the payer accompanying transfers of funds.

The omissions and / or weaknesses identified arise from the findings of the on-site inspection conducted in 2014, and relate to the level of compliance of the branch in relation to the legal and regulatory framework for the prevention of money laundering and terrorist financing.