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 Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term 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.