CBS takes over BMI Offshore Bank (BMIO) |12 November 2014

The Central Bank of Seychelles (CBS) has announced that it has taken control of BMI Offshore bank (BMIO) effective November 11, 2014.

This is in line with Schedule 3 of the Financial Institutions Act 2004 which empowers CBS to take such action where it is of the opinion that the continuation of a bank’s activities is detrimental to the interests of its depositors.

As stated in a press communiqué dated October 24, 2014, BMIO is not able to effect outward foreign currency transfers due to the loss of its correspondent banking relationship.  

Since then CBS has been in discussion with BMIO’s board of directors in order to resolve the issue.

However, in view that BMIO has not been able to establish a new correspondent banking relationship to date, CBS has decided to take control of the bank.

As such, the management and control of the affairs of BMIO is now temporarily vested with CBS.

During the time that CBS has control of BMIO, it will attempt to address the issues that are impeding the bank from re-establishing correspondent banking relationship.

CBS has reiterated that the issue is purely of an operational nature and that BMIO is financially sound. As such, BMIO’s deposits are not threatened by the lack of correspondent banking relationship.
 
CBS has said it will provide an update of the situation in due course.