By its Order No. OD-139, dated 21 January 2016, the Bank of Russia revoked a banking licence from the Saint Petersburg-based credit institution Joint-stock Commercial Bank Turbobank, joint-stock company, or JSC JSCB Turbobank (Registration number 3203) from 21 January 2016.
The Bank of Russia took such an extreme measure — revocation of the banking licence — due to the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, repeated violations within one year of Bank of Russia requirements stipulated by Articles 6, 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 Federal Law, and application of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
JSC JSCB Turbobank failed to comply with legislation requirements as regards countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism, including but not limited to timely and detailed reporting to the authorised body. Besides, the credit institution was involved in large-value dubious transit operations. The management and owners of the credit institution did not take effective measures to normalise its activities.
By its Order No. OD-140, dated 21 January 2016, the Bank of Russia has appointed a provisional administration to JSC JSCB Turbobank for the period until the appointment of a receiver pursuant to the federal law ‘On the 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 body are suspended.
JSC JSCB Turbobank is a member of the deposit insurance system. The revocation of the banking licence is an insured event envisaged by Federal Law No. 177-FZ ‘On Insurance of Household Deposits with Russian Banks’ regarding the banks’ obligations on deposits of households determined in accordance with legislation. This Federal Law provides for the payment of insurance indemnity to the bank’s depositors, including individual entrepreneurs, in the amount of 100% of their balances but not exceeding the total of 1.4 million rubles per depositor.
According to financial statements, as of 1 January 2016, JSC JSCB Turbobank ranked 662nd by assets in the Russian banking system.