The state broadcaster CyBC reported last night that four bankers in total, two Romanian and two Cypriot, were being investigated on the above charges.

Quoting the Athens News Agency, the broadcaster said that the two Cypriot employees from the Bank of Cyprus branch in Romania, allegedly passed on information to two Romanian colleagues that Banca Trasilvania was looking for a strategic investor and that the Cypriot bank planned to buy a significant number of shares in the Romanian bank. The bankers in question then allegedly bought shares worth millions, making huge profits.

The Romanian Legal Service has reportedly cleared the two banks in question of any wrongdoing, maintaining that the four bankers were acting for their own interests from May 15 to December 10, 2009.

The Bank of Cyprus released an announcement yesterday backing its employees, saying the bank has procedures in place to ensure personnel behave according to the rules and regulations that apply in each market where the bank operates, based on internationally recognised practices.

“The Bank of Cyprus and its staff operated in good faith and in full compliance with all the relevant laws and regulations in Romania,” it said, regarding the bank’s purchase of Banca Transilvania shares in December 2009.

The bank added it would cooperate with the Romanian investigative authorities and refrain from any further comment until the end of the procedure.

It expressed its certainty that in the end, “the full compliance of the bank with the relevant regulations will be confirmed”.