FBME : Court rejects request for rehearing

A US appeals court has rejected the application for a rehearing of their rejected appeal by the owners of Tanzania’s FBME Bank.

In April, the bank and the owners of FBME disputed the court’s decision in the first instance in order to not overthrow the decision of the Finance Crime Enforcement Network (FinCEN) but to restrict the lender from transacting in dollars.

The Bank of Tanzania advised the FBME Bank to withdraw from the appeal in early October, which left FBME Ltd, the Cayman Islands-based holding company, as the only remaining appellant.

A few days later, a lawyer from FBME told the court that the Cayman company had been removed from the company register and so, could not sue or be sued. However, the court rejected the appeal as FBME Ltd had no capacity to sue. Following this, the owners of FBME notified the court that they had reinstated the company the next day and requested the rehearing.

FinCEN has blacklisted the FBME Bank after it classed the bank predominantly as a money laundering concern. Nevertheless, the lender kept a branch in Cyprus which had its licence annulled by the Central Bank of Cyprus nearly two years ago.


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