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FOR IMMEDIATE RELEASE
U.S. Embassy
AUGUST 24, 2004
U.S. proposes to take action against a north Cyprus offshore bank
The U.S. Government is proposing to take action against an offshore bank in north Cyprus, the First Merchant Bank, under Section 311 of the U.S. Patriot Act as a financial institution of primary money laundering concern. On August 24, the U.S. Government published in the Federal Register a Notice of Proposed Rule Making beginning a 30-day public comment period after which a notice of Final Rulemaking can be issued. This would require all U.S. financial institutions to close any correspondent account with this bank as well as any correspondent account maintained by another financial institution that is used by this bank. The rule would also prohibit the opening or maintaining of such an account. The proposed action is in regard only to this one particular financial institution. The U.S. Embassy notes that the integrity of financial institutions will be an essential element of sustainable economic growth in north Cyprus. Thus, it is important that the Turkish Cypriot financial sector meet European and international standards.
For more information, follow this link to the U.S. Department of Treasury
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