Saab, et al. v. The Republic of Cyprus

Analysis Group was retained by Curtis, Mallet-Prevost, Colt & Mosle LLP on behalf of the Republic of Cyprus, respondent in an arbitration proceeding before the International Chamber of Commerce International Court of Arbitration in Paris. The arbitration was filed by two individuals alleging losses of $1.4 billion as a result of actions the Central Bank of Cyprus (CBC) took in response to the designation of FBME Bank, Ltd. (FBME) as a financial institution of “primary money-laundering concern” by the US Treasury’s Financial Crimes Enforcement Network (FinCEN). As a result of this designation and the impact it had on the bank, the CBC moved to protect depositors in the bank’s Cypriot branches by taking managerial control of the branches and then placing them in the resolution process in preparation for sale or liquidation.

An Analysis Group team led by Managing Principal Kevin Gallagher and Vice President Steven Saeger supported two experts: Jean-Pierre Landau, an Analysis Group affiliate, who opined on the reasonableness of the CBC’s regulatory actions; and Pierre Mariani, who opined on issues related to quantum, including the value of FBME and the impact that FinCEN’s designation had on its operations. The case was dismissed in its entirety.