FBME Bank

Overview

As of September 2013, FBME is the largest commercial bank in Tanzania, with a total asset base valued at approximately US$2.716 billion (TZS:4.4 trillion), with shareholders' equity of approximately US$179.63 million (TZS:291 billion).

History

The bank was founded in 1952 in Lebanon, as the Federal Bank of Lebanon SAL. In 1982 Federal Bank of the Middle East was established in Cyprus as a subsidiary of the Federal Bank of Lebanon SAL. In 1986 Federal Bank of the Middle East changed its country of incorporation to the Cayman Islands and its banking presence in Cyprus was transformed to that of a branch of the Cayman Islands entity. Since 1993 it has maintained a Representative Office in Moscow.

In 2003, as part of its strategic planning, Federal Bank of the Middle East terminated its banking presence in the Cayman Islands and established its parent company and operational headquarters in Tanzania. At the same time, its Cyprus operations became a branch of Federal Bank of the Middle East, Tanzania.

In 2005 the Federal Bank of the Middle East Changed its name to FBME Bank. FBME Card Services Limited (FBMECS) was incorporated in 2002 and in 2004/5 took over the Card Services operations of FBME Bank.

In 2014 the Financial Crimes Enforcement Network (FinCEN), a bureau of the United States Department of the Treasury, which collects financial transactional data and information in order to combat domestic and international money laundering, terrorist financing, and other financial crimes, accused FBME which operates primarily in Cyprus, of facilitating financial transactions for multinational organised crime organizations and Hezbollah. The Central Bank of Cyprus took over management of the bank and appointed Mr. Dinos Christofides as administrator, who was later replaced by Andrew Andronicou and thereafter the latter replaced by Chris Iacovides.

In May 2015, the International Chamber of Commerce's Arbitral Tribunal called on Cypriot banking authorities to abstain from taking any measures that would destroy irrevocably the business of FBME Cyprus pending completion of arbitration. The request for Interim Measures had been filed by Ayoub-Farid Michel Saab and Fadi Michel Saab, owners of the band and claimants in the dispute against the Republic of Cyprus. FBME Bank said this confirms Procedural Order No. 1 by inviting the Republic of Cyprus to refrain from proceeding to the sale or the resolution of FBME Bank before the end of this arbitration. and puts Cypriot financial authorities under obligation to notify any further measure regarding FBME Cyprus 30 days in advance, and that Cyprus can no longer act in isolation and put all interested parties before a fait accompli. Further, FBME, the Arbitral Tribunal and that Messrs. Saab, owners, will be in a position to react before a decision is final, and have an opportunity to take all measures and legal actions that they deem appropriate.

The 21st of December 2015, the central bank of Cyprus revoked the branch license of FBME bank in Cyprus.

After the deposit guarantee scheme was activated for customers with accounts in Cyprus, the banks staff in Cyprus started a strike. In June 2016, staff agreed to assist with the administration of the deposit guarantee scheme and customers start receiving their money up to 100.000 Euro. There are in 2016 numerous court cases ongoing. The verdicts show a sense of predictability.

Ownership

The shares of stock of FBME Bank are owned by Ayoub-Farid M Saab (50%) and Fady M Saab (50%).

Branch network

The bank maintains the following branches:

1. Nicosia Branch - 90 Archbishop Makarios III Avenue, 1077 Nicosia, Cyprus
2. Limassol Branch - Omiros & Araouzos Tower, 25 Olympion Street, 3035 Limassol, Cyprus

1. Main Branch at Samora Avenue, Dar es Salaam, Tanzania
2. Zanzibar Branch - 19-1 Kisiwandui, Zanzibar, Tanzania
3. Arusha Branch - 47 Old Moshi/Haile Selasie Road, Arusha, Tanzania
4. Mwanza Branch - Station Road, Mwanza, Tanzania

1. Moscow Representative Office - 7/11, 3rd Lusinovsky Lane, 119049 Moscow, Russia