DAR ES SALAAM May 8 Tanzania's central bank
said on Monday it revoked the business licence of FBME Bank and
placed it under liquidation after it was accused by the U.S.
government of large-scale money laundering.
The central bank took over the management of FBME Bank in
July 2014 following a report from the U.S. Treasury's Financial
Crimes Enforcement Network (FinCEN) describing the bank as a
"primary money laundering concern."
The Tanzanian-registered bank mounted a legal challenge
against the allegations, but a U.S. court ruled in favour of
FinCEN in April, allowing it to shut the bank out of accessing
the U.S. financial system.
The decision also paved the way for the central bank to
revoke the bank's license, officials said.
"The Bank of Tanzania has discontinued all banking
operations of FBME Bank Ltd, revoked its banking business
license and placed it under liquidation," the central bank said
in a statement.
It said it had appointed the Deposit Insurance Board as a
FBME, which according to its website specialises in
cross-border transactions, commercial trading and foreign
exchange services, did not respond immediately to a request for
FBME Bank is registered in the East African country but has
been conducting most of its business operations elsewhere,
notably in Cyprus.
(Reporting by Fumbuka Ng'wanakila; editing by John Stonestreet)