FinCen Severs Access of FBME Bank to U.S. Financial System

The Financial Crimes Enforcement Network of the U.S. Department of Treasury ("FinCen") issued a final rule pursuant to Section 311 of the USA Patriot Act, which imposes "special measure five" against FBME Bank Ltd. ("FBME"), formerly known as the Federal Bank of the Middle East. Special measure five prohibits U.S. financial institutions from opening or maintaining correspondent accounts payable through accounts for or on behalf of the FBME.

"The finalization of this rule is significant," stated FinCEN Director Jennifer Shasky Calvery, "because it demonstrates that the United States will not allow a compromised foreign bank to send dirty funds through the U.S. financial system."