Banking licence of PIR Bank revoked and provisional administration appointed
By Order No. OD-2646, dated 12.10.2018, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Limited Liability Company Bank of Industrial and Investment Settlements, or PIR Bank LLC (Registration No. 2655) from 12 October 2018. According to its financial statements, as of 1 October 2018, the credit institution ranked 296th by assets in the Russian banking system.
The operations of PIR Bank LLC 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 completeness and reliability of information provided to the authorised body about operations subject to obligatory control.
PIR Bank LLC has long been in the purview of the Bank of Russia due to the bank’s suspicious transit transactions. The decrease in the volume of the said operations was solely the result of the restrictive measures imposed by the regulator. Therefore, AML/CFT activity of PIR Bank LLC internal controls cannot be recognised as effective. These circumstances showed that the management and owners of PIR Bank LLC were reluctant to take any efficient measures to preclude the bank’s involvement in suspicious activity of its customers.
The Bank of Russia had repeatedly (4 times over the last 12 months) applied supervisory measures against PIR Bank LLC, including two impositions of restrictions on household deposit taking.
Under these circumstances, the Bank of Russia took the decision to revoke the banking licence from PIR Bank LLC.
The Bank of Russia took this decision due the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, repeated violations within one year of the requirements stipulated by Articles 6 and 7 (except for Clause 3 of Article 7) of the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’, and the requirements of Bank of Russia regulations issued in pursuance thereof, and taking into account repeated applications within one year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
By its Order No. OD-2647, dated 12.10.2018, the Bank of Russia appointed a provisional administration to PIR Bank LLC 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 were suspended.
PIR Bank LLC 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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