FlowBank Ltd. is making progress in its liquidation
process, with steps taken to repay creditors and clients. As of
November 30, 2024, the bank has repaid CHF 49.7 million, covering 91.3% of
secured deposits. However, 2,609 customers have yet to claim their deposits.
The transfer and sale of securities are progressing, with
27,981 out of 39,640 lines successfully transferred or sold. The bank offers
clients a platform to sell securities, with cash transfers available in EUR or
CHF.
FlowBank Seeks Buyers for Stake
As of October 31, 2024, FlowBank’s asset inventory is valued
at approximately CHF 360 million, including deposits with the Swiss National
Bank and other banks. The liquidation team is also looking for buyers for the
bank’s stake in London Capital Group.
Plans are in place for decommissioning IT infrastructure,
with a target completion date of mid-2025. Efforts to return assets to clients
continue, while office leases and employee contracts are being managed.
Earlier, Finance Magnates
reported that the liquidators of FlowBank launched a
new platform to allow clients to sell their securities directly before
November 15, 2024.
Walder Wyss facilitated client access to the platform for
securities liquidation until the specified date, aiming to speed up cash
retrieval and avoid the more time-consuming process of transferring securities.
The liquidators warned that failure to act could cause delays in accessing
funds. Clients are instructed to log in using their regular credentials to
initiate sales.
💥FLOWBANK SA DECLARES BANKRUPTCY💥FINMA Steps In to PROTECT ALL CLIENTS, INCLUDING CRYPTO and FOREX INVESTORS https://t.co/9vJInbeBag pic.twitter.com/MRaEXpU5yp
— ISO 20022…. LET’S DO IT (@Rohitku24694375) June 14, 2024
FINMA Revokes FlowBank License
Switzerland’s Financial Market Supervisory Authority (FINMA)
revoked
FlowBank’s operational license on June 13, 2024, and began bankruptcy
proceedings.
The regulatory action followed an investigation that began
in October 2021, focusing on alleged violations of supervisory laws,
particularly regarding capital requirements, organizational adequacy, and risk
management.
Despite the appointment of an external auditor in October
2022, FINMA claimed that the bank continued to breach capital ratio
requirements and showed deficiencies in several areas of its operations.
This article was written by Tareq Sikder at www.financemagnates.com.
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