On revocation of banking licence from Raschetno-Kreditny Bank and appointment of provisional administration

By Order No. OD-242, dated 2 February 2018, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Limited Liability Company Raschetno-Kreditny Bank Co. Ltd., or RKB (Registration No. 103) from 2 February 2018.

Due to RKB’s inefficient internal control system, the bank on multiple occasions failed to comply with the laws and Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism, including with regard to identifying operations subject to obligatory control and submitting reliable information to the authorised body. RKB’s activities in 2016-2017 were largely focused on dubious transit operations, which posed a real threat to the interests of its creditors and depositors.

The Bank of Russia took supervisory action against the credit institution on more than one occasion.

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 RKB 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 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.

By its Order No. OD-243, dated 2 February 2018, the Bank of Russia appointed a provisional administration to RKB 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.

RKB is a member of the deposit insurance system. The revocation of the banking licence is an insured event as stipulated by Federal Law No. 177-FZ ‘On the Insurance of Household Deposits with Russian Banks’ in respect of the bank’s retail deposit obligations, as defined by law. The said Federal Law provides for the payment of indemnities to the bank’s depositors, including individual entrepreneurs, in the amount of 100% of the balance of funds but no more than a total of 1.4 million rubles per depositor.

According to the financial statements, as of 1 January 2018, the credit institution ranked 184^th by assets in the Russian banking system.

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