(BEIRUT, LEBANON) — The Cypriot Central Bank (CBC) says it has took control of Lebanese-owned FBME Bank’s operations in Cyprus after the United States Treasury Department blacklisted it over money laundering concerns.
“The Central Bank of Cyprus (CBC) announces that, under the powers conferred by law, starting today (Friday), it has taken over the administration of the FBME Bank branch’s operations in Cyprus,” the CBC said in a statement.
FBME, formerly known as the Federal Bank of the Middle East, is based in Tanzania, but primarily operates in Cyprus as a subsidiary of the Federal Bank of Lebanon SAL.
The two banks are part of “Saab’s Financial Group.”
FBME is said to promote “itself on the basis of its weak Anti-Money Laundering (AML) controls in order to attract illicit finance business from the darkest corners of the criminal underworld.”
In June, the U.S. House Foreign Affairs Committee unanimously approved a sanctions bill that prevents any financial and logistic institutions from funding Hezbollah.
In 2013, Obama renewed a “national emergency” which imposes a freeze on assets of people linked to Hezbollah, stressing that they still “undermine Lebanon’s stability.”
In August 2007, President George W. Bush ordered a freeze on U.S. assets of anyone Washington deems to be undermining the Lebanese government.