ANNOUNCEMENT BY THE MANAGEMENT COMMITTEE OF THE DEPOSIT GUARANTEE AND RESOLUTION OF CREDIT AND OTHER INSTITUTIONS SCHEME

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1 This is an unofficial translation, for information purposes only ANNOUNCEMENT BY THE MANAGEMENT COMMITTEE OF THE DEPOSIT GUARANTEE AND RESOLUTION OF Activation of the procedure for the payment of compensation from the Deposit Guarantee Fund for Banks for deposits held in FBME Bank Ltd Cyprus Branch With reference to the provisions of the Deposit Guarantee and Resolution of Credit and Other Institutions Scheme Law of 2016 ( the Law ), in particular sections 4(a)(i) και 10(1)(a) of the Law, and the provisions of the Deposit Guarantee and Resolution of Credit and Other Institutions Scheme Regulations of 2016 as amended ( the Regulations ), the Management Committee of the Deposit Guarantee and Resolution of Credit and other Institutions Scheme («the Committee») announces the following pursuant to Regulation 12: 1. The Central Bank of Cyprus has established and has informed the Committee that FBME Bank Ltd Cyprus Branch for reasons relating to its financial condition does not appear for the time being able to repay deposits to its clients and also deems that FBME Bank Ltd Cyprus Branch will not be able to do so in future. 2. The Deposit Guarantee and Resolution of Credit and Other Institutions Scheme which has been established by Law ( the DGS ) will pay via the Deposit Guarantee Fund for Banks compensation to the depositors of FBME Bank Ltd Cyprus Branch in relation to their deposits at FBME Bank Ltd Cyprus Branch which are covered by the DGS, as specifically provided in the Law, the Regulations and the present announcement as this may be amended via subsequent announcements. The DGS covers all deposits at FBME Bank Ltd Cyprus Branch, in euro or in other currencies, which belong to natural or legal persons except of the deposits which are mentioned in Regulation 7 and which are also included for information at the end of this announcement for ease of reference. 3. Pursuant to Section 20 of the Law, the Central Bank of Cyprus will provide secretariat and other administrative or technical support to the DGS in order for the latter Λεωφόρος Κέννεντυ 80, 1076 Λευκωσία Τ.Θ , 1395 Λευκωσία Τηλέφωνο: Ιστοσελίδα:

2 to pay through the Deposit Guarantee Fund for Banks compensation to the depositors of FBME Bank Ltd Cyprus Branch. As regards to the provision of this support, no obligation nor responsibility arises for the Central Bank of Cyprus towards the depositors of FBME Bank Ltd Cyprus Branch. 4. The Committee establishes the following arrangements for the submission of particulars by the depositors of FBME Bank Ltd Cyprus Branch, as well as the necessary evidence that should accompany them: (1) The depositors of FBME Bank Ltd Cyprus Branch whose deposits are covered by the DGS are invited to submit the required information using the standardised statement of particulars that is electronically available on the website of the Central Bank of Cyprus and as from Monday 11 April 2016 at the offices of the Central Bank of Cyprus at 80 Kennedy Avenue, 1076 Nicosia, Cyprus. Meanwhile efforts will be made so that the statement of particulars form is also available as of the same date at the offices of FBME Bank Ltd Cyprus Branch, 90 Archbishop Makarios III Avenue, 1077 Nicosia, Cyprus. No statement of particulars will be accepted other than the standardised template. The information provided shall be verified by the Special Administrator of FBME Bank Ltd Cyprus Branch or authorised persons by him and then submitted by the depositors at the offices of the Central Bank of Cyprus, 80, Kennedy Avenue, 1076 Nicosia. More specifically, statements of particulars together with the necessary accompanying documentation will be accepted as from Monday 11 April 2016, from 11:00 to 13:00 and 15:30 to 17:00 at the offices of the Central Bank of Cyprus. Depositors may submit their particulars from 08:00 to 13:00 during bank working days with the exception of Monday 11 April 2016 as mentioned above. (2) Depositors who will submit their statement of particulars and provided this is accepted, will be compensated within 7 working days. (3) Upon submission of the statement of particulars, documentary evidence shall be displayed and supporting evidence provided as follows: (A) Documentary evidence for the identification of depositors 2/10

3 Natural persons (resident in Cyprus or abroad) Adults - Demonstration of a valid identity card of the Republic of Cyprus or of another country and of a valid passport with a clear photograph of the actual beneficiary, and submission of a photocopy of each. Minors (the application is submitted by the parent/guardian) - Demonstration of a valid identity card (if the minor possesses one) of the Republic of Cyprus or of another country and/or of a valid passport with a clear photograph of the actual beneficiary, and submission of a photocopy of each. - Provision of an original or certified copy of a birth certificate (in English if Greek is not available) provided by the parent/guardian, - Identity card and passport for the identification of the parent/guardian as per the point above referring to the identification of adults as well as provision of a photocopy of his/her identity card and passport. - Provision of an original or certified copy of a court order (in English if Greek is not available) regarding the management of the minor s account. Legal persons - Provision of an original or certified copy issued by the Registrar of Companies and Official Receiver («Registrar of Companies») showing the registration number of the legal person and the registered office address. - The persons appearing as authorised by the legal person (proxies), must exhibit an identity card and passport as referred to above in the identification of natural persons and to provide a photocopy of each. - With regard to companies registered outside Cyprus that have not been registered with the Registrar of Companies, documents and evidence must be submitted similar to those referred to above in English which are certified by the embassy or the consulate in Cyprus of the country of origin of each applicant or the Special Administrator. (B) Account details for the payment of compensation Natural persons 3/10

4 Signed confirmation by a credit institution of the EEA 1 to which the payment transfer will be made. This confirmation must include the o ΙΒΑΝ, o BIC and o the same name of the depositor as the one on the application (the account may be joint). Legal persons Signed confirmation by a credit institution of the EEA 2 to which the payment transfer will be made. This confirmation must include the o ΙΒΑΝ, o BIC and o the same name of the legal person as the one on the application. (C) Special cases of depositors With regard to the following cases, the following procedures will be adopted in addition to the aforementioned: Client accounts: The Special Administrator specifies that the particular account is of that kind on the statement of particulars. The Management Committee of the DGS will decide, in consultation with the Special Administrator, on the payment and the amount of compensation. Trust accounts: The Special Administrator specifies that the particular account is of that kind on the statement of particulars. The Management Committee of the DGS will decide, in consultation with the Special Administrator, on the payment and the amount of compensation. Beneficiaries who are represented by the same corporate service providers: the authorised persons may communicate via electronic mail (dps@centralbank.gov.cy) in order to arrange for the submission of the 1 European Economic Area: the 28 countries of the European Union (Austria, Belgium, Bulgaria, Republic of Cyprus, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom), Iceland, Lichtenstein and Norway. 2 See footnote 1. 4/10

5 relevant statement of particulars of their customers at the Central Bank of Cyprus. Partnerships: The partnership constitutes a separate entity from the persons (natural or legal) holding the partner position on that entity. The handling of such cases is no different from the handling of any other case of a legal person which is entitled to compensation. Therefore, partnerships need to submit the relevant documents (i.e. registration certificate from the Registrar of Companies) to prove their establishment. Similar documentation should be submitted for partnerships which have been established abroad. Joint accounts: Joint account at FBME Bank Ltd Cyprus Branch: each depositor that is beneficiary in a joint account is entitled to compensation based on the total amount of the deposit divided by the number of beneficiaries, unless specific evidence or special contractual terms determining the particular amount belonging to each of the beneficiaries of the joint account so exist. Statement of particulars must be submitted by each beneficiary of the joint account. In all cases, the Committee acts on the basis of data maintained at FBME Bank Ltd Cyprus Branch until 9 April Documentation regarding the status of a person as depositor (as transferee or otherwise) or as to the nature of the bank account (deposit-loan, joint, client account, trust account etc), which differs from the files of FBME Bank Ltd Cyprus Branch on 9 April 2016 are not taken into consideration by the Committee. (4) The Committee reserves the right to examine the documentary evidence that accompany the statement of particulars, to verify their validity and to request further documentary evidence. Pursuant to Regulation 13, the Committee may defer the compensation payment of a particular deposit, in the following cases, among others: (a) if it is uncertain whether a person is legally entitled to receive repayment or the deposit is subject to a dispute; (b) if the deposit is subject to restrictive measures imposed by national governments or international bodies; (5) A depositor s right to compensation shall not be forfeited until 9 April /10

6 5. The Committee shall determine the compensation amount to be paid by the DGS to each depositor with regard to a deposit covered by the DGS and for which a duly completed statement of particulars has been submitted together with all necessary supporting evidence in accordance with point 4. above. For this purpose, the Committee will ensure the implementation of the relevant provisions of the Law and the Regulations, particularly Regulations 8 and 12. According to Regulation 8, the compensation which is payable by the DGS via the Deposit Protection Fund for Banks to a depositor does not exceed the amount of (one hundred thousand euro). The obligations of each depositor against FBME Bank Ltd Cyprus Branch are taken into consideration in the calculation of the payable amount in accordance with Section 35 of the Bankruptcy Law and the relevant provisions which determine the contract between FBME Bank Ltd Cyprus Branch and the depositor. This amount includes compensation for the initial capital and accrued interest as specifically defined in Regulation 6(1). In the case of deposits denominated in a currency other than the euro, the Committee shall determine the calculated amount and will compensate the payable amount in euro, by using the foreign exchange reference rate of the relevant currency against the euro as this is published on the website of the European Central Bank on 8 April In case that it is brought to the attention of the Committee that a depositor or any other person entitled to or having an interest in sums held in an account has been charged with an offence arising out of or in relation to money laundering in accordance with the provisions of the Prevention and Suppression of Money Laundering Activities Law, the DGS suspends any payment pending the judgement of the court. In case of conviction, the said deposit is considered as not covered by the DGS as per the provisions of Regulation 7(1)(c). (7) Without prejudice to paragraph 6, the Committee will ensure the transmission of a notification to the corresponding depositor regarding the compensation amount calculated in accordance with paragraph 5. The notification will be transmitted via electronic mail at the electronic mailing address specified by each depositor on the statement of particulars. The depositor is deemed to have received the notification if the Central Bank of Cyprus 6/10

7 does not receive an automated mail message of failed transmission of the electronic message. The depositor is deemed to agree with the calculation of compensation and that, as of the payment of the amount stated on the notification, he/she has no further claim against the DGS as depositor of FBME Bank Ltd Cyprus Branch, unless he/she informs the Committee of the contrary within 30 calendar days from the date on which the notification for the calculated amount of compensation is transmitted via electronic mail. 8. The Committee will ensure for the payment of compensation within seven (7) working days as of Monday 11 April 2016 to depositors of FBME Bank Ltd Cyprus Branch who will have submitted a duly completed statement of particulars and the necessary supporting evidence. As regards to the payment of compensation in particular, the following apply: (1) The payment of compensation will be exclusively carried out via credit transfers, in euro and to an account belonging to the depositor at a credit institution in a country of the European Economic Area, i.e. a member state of the European Union, Iceland, Norway or Liechtenstein («the credit institution of destination»). This account will be specified by each depositor on their statement of particulars. (2) The DGS pays to the depositor the amount of credit transfer as at the moment on which the account of the credit institution of destination is credited with this amount. Further credit to the account that the depositor of FBME Bank Ltd Cyprus Branch maintains at the credit institution of destination and the availability of this amount at the depositor s disposal, including any conversion of this amount from euro into the currency of the account, are under the exclusive control of the credit institution of destination and do not affect the payment by the DGS. (3) The DGS and the depositor to whom the compensation is paid each bear the charges for the credit transfer attributed to them in settlement (SHA) of credit transfers. (4) In cases where the amount of credit transfer is returned to the DGS for reasons that are possibly related to money laundering activities or terrorist financing, paragraph 6. of this announcement applies. (5) In cases where the amount of credit transfer is returned to the Scheme for reasons other than those mentioned in point (4), the Committee shall ensure that the depositor is informed accordingly and a suitable arrangement is found. In any case, the compensation payment will be exclusively made via credit transfers, in euro and to an account belonging to the depositor with a credit institution in a country of the European Economic Area. 7/10

8 (6) The DGS is not responsible for any acts or omissions of the credit institution of destination. (7) The DGS is not responsible for any delays in the process until the payment of compensation that are due to force majeure or to malfunctioning of the interbank infrastructure for payment services. 9. As specifically described in the statement of particulars, the depositor is accumulatively considered that- (1) without prejudice of article 27(3) of the Law, has granted to the DGS, to the extent of the amount of compensation payment, the claim of the depositor against FBME Bank Ltd Cyprus Branch from the deposit that he/she maintains there (hence this deposit is still considered as covered deposit in the hands of the DGS), (2) will not seek any other claim against FBME Bank Ltd Cyprus Branch until the DGS recovers the compensation amount from FBME Bank Ltd Cyprus Branch, and (3) has authorised the Committee of the DGS to act on his/her behalf and for his/her own account in acts, presentations and contractual commitments which are necessary in order to implement points (1) and (2) above. 10. By activating the process of payment of compensation from the Deposit Guarantee Fund for Banks in accordance with the present announcement, the obligations of the DGS towards FBME Bank Ltd Cyprus Branch until the date of the present announcement are fulfilled. Without prejudice to a different and specific provision that may be introduced within the functional framework of the DGS, possible functioning of FBME Bank Ltd Cyprus Branch from now on bear no obligation for the DGS. 11. The DGS may use to its benefit possible functioning of FBME Bank Ltd Cyprus Branch or possible change in its situation or records which takes place after the publication of the present announcement. 12. Deposits that are exempted from the payment of compensation In accordance with Regulation 7 the following categories of deposits are exempted from the payment of compensation: (a) deposits made by other banks and cooperative credit institutions on their own behalf and for their own account; (b) own funds; 8/10

9 (c) deposits arising out of transactions in connection with which there has been a criminal conviction for money laundering; (d) deposits by credit institutions; (e) deposits by investment firms; (f) deposits the holder of which has never been identified pursuant to the provisions of the of the Prevention and Suppression of Money Laundering Activities Law, as this is amended or replaced, when these become unavailable ; (g) deposits by insurance undertakings and by re-insurance undertakings ; (h) deposits by collective investment undertakings; (i) deposits by pension and retirement funds; (j) deposits by public authorities; (k) debt securities issued by a credit institution and liabilities arising out of own acceptances and promissory notes. It is noted that irrespective of the provisions of subparagraph (i), deposits from individual pension schemes and occupational pension schemes or small-medium enterprises funds, including collective schemes or Occupational Retirement Benefit Funds of which the members are employees of one and/or more small-medium enterprises and which are either registered with the Registrar of Occupational Retirement Benefit Funds according to the provisions of the Establishment, Activities and Supervision of Occupational Retirement Benefit Funds Law or are integrated through an insurance contract with an insurance company in Sector 7 of the Life Insurance, in accordance with the provisions of the Insurance Services and Other Related Issues Law, are covered by the DGS, subject to the provisions of Regulation 8(1) and Regulation 10(2)(e). In light of the above, applications from depositors that fall within the categories (a)- (k) will not be taken into consideration excluding the special cases described above. 13. Depositor Information For any further information or clarifications the depositors of FBME Bank Ltd Cyprus Branch may contact / / or electronically: dps@centralbank.gov.cy 9/10

10 The Law and the Regulations which govern the operation of the DGS are available on the website of the Central Bank of Cyprus (Greek only): Nicosia, 9 April 2016 For the Committee of the Deposit Guarantee and Resolution of Credit and Other Institutions Scheme, Chrystalla Georghadji Chairperson 10/10