DIB extends time for FBME depositors, creditors to submit claims

DAR ES SALAAM: THE Deposit Insurance Board (DIB) has extended the time for submission of claims for two months to depositors and other creditors of the FBME Bank Limited under liquidation.

According to the notice issued by DIB in Dar es Salaam at the weekend, the depositors and other creditors of FBME Bank have been given two months from January 1st to February 29th this year.

The DIB, which is the Liquidator of FBME Bank Limited said local depositors with deposits above 1.5m/- are required to submit their respective claims against FBME Bank Limited to DIB by delivering a dully completed claim form along with a copy of the National Identity Card or any other valid ID at FBME Bank Limited former branch, Samora Avenue in Dar es Salaam, the BoT Zanzibar sub-office or BoT branches in Mwanza and Arusha.

The claim forms are available at FBME Bank Limited former branch in Dar es Salaam, BoT Sub- Head office in Zanzibar or Bank of Tanzania branches in Mwanza and Arusha as well as DIB.

The statement said further that the international depositors (TIB depositors) are required to submit their claims to Mr Petros Ionnides, the DIB’s appointed agent in Cyprus.

Ten years ago, BoT took over the management of FBME Bank Limited as a result of the USA’s Financial Crimes Enforcement Network (FinCEN) notice of findings issued identifying FBME as a financial institution of primary money laundering concern and the action by the Central Bank of Cyprus to take-over the operations of the branch of FBME Bank Limited in Cyprus.

FinCEN then issued a Notice proposing to impose special prohibition measures against FBME.

Since the issuance of the Notice, FinCEN and FBME embarked on a court case at the US District Court for the District of Columbia, which was finally ruled in favour of FinCEN in April 2017.

The court ruling allowed FinCEN to proceed with implementing the final rule which effectively bans FBME from accessing the US financial system.

In 2017, the BoT revoked the business licence of the FBME placing it under liquidation after being accused by the United States government of involvement in money laundering.

The BoT decision has paved the way for regulators to cancel all banks’ operations in the country.

In September last year, the DIB said that it was on the verge of paying 341bn/- to large depositors of the ill-fated FBME Bank.

The amount was to be paid to roughly more than 6000 large customers who had deposited 7.0m/- and above by the time the bank collapsed over six years ago.

The central bank got the financial muscles after winning the case that granted it the official liquidator for the FBME.

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