On revocation of banking licence from credit institution Commercial Bank PREODOLENIE and appointment of provisional administration
By Order No. OD-3610, dated 22 December 2017, the Bank of Russia revoked the banking licence of the Moscow-based credit institution limited liability company Commercial Bank PREODOLENIE, or CB PREODOLENIE (Registration No. 2649) from 22 December 2017. According to the financial statements, as of 1 December 2017, the credit institution ranked 436th by assets in the Russian banking system.
The operations of CB PREODOLENIE were found to be non-compliant with the law and Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism with regard to the timely provision of information and credible notification of the authorised body about operations subject to obligatory control. The supervisory action on the bank’s activities established ‘shadow’ currency exchange operations which were not recorded in statements submitted to the Bank of Russia.
The management and owners of the bank failed to take any effective measures to normalise its activities. Under the circumstances the Bank of Russia took the decision to withdraw CB PREODOLENIE from the banking services market.
The Bank of Russia took such an extreme measure — revocation of the banking licence — because of the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, repeated violations within a year of Bank of Russia requirements stipulated by Article 6 and 7 (excluding Clause 3 of Article 7) of the Federal Law ’On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’ as well as Bank of Russia regulations issued in accordance with the said law and repeated application, within one year, of the measures stipulated by the Federal Law ’On the Central Bank of the Russian Federation (Bank of Russia)’, taking into account a real threat to the interests of creditors.
Following banking licence revocation, in accordance with Bank of Russia Order No. ОD-3610, dated 22 December 2017, CB PREODOLENIE’s professional securities market participant licence was revoked.
By its Order No. OD-3611, dated 22 December 2017, the Bank of Russia appointed a provisional administration to CB PREODOLENIE for the period until the appointment of a receiver pursuant to the Federal Law ‘On Insolvency (Bankruptcy)’ or a liquidator under Article 23.1 of the Federal Law ‘On Banks and Banking Activities’. In accordance with federal laws, the powers of the credit institution’s executive bodies have been suspended.
CB PREODOLENIE is a member of the deposit insurance system. The revocation of the banking licence is an insured event as stipulated by Federal Law No.
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