First Merchant Bank based in the occupied territories of northern Cyprus issued an announcement on Thursday denouncing the decision of the US Treasury Department according to which the bank - together with a bank based in Belarus - is operating as a financial institution of “primary money laundering concerns”.

The announcement reported that the bank operates pursuant to the “legislation” and under the control of the “Central Bank” of the occupied areas and has already filed an action against the US Treasury Department.

On the other hand, the US Treasury Department supported that the bank has a license to operate as an offshore bank in the occupied territories, where control for money laundering is not sufficient.