On revocation of banking licence from FINANCIAL-INDUSTRIAL CAPITAL BANK and appointment of provisional administration
By its Order No. OD-320, dated 9 February 2018, the Bank of Russia revoked the banking licence of the Moscow-based credit institution COMMERCIAL BANK FINANCIAL-INDUSTRIAL CAPITAL (LIMITED LIABILITY COMPANY), or CB FPK (LLC) (Registration No. 3295) from 9 February 2018. According to the financial statements, as of 1 January 2018, the credit institution ranked 297th by assets in the Russian banking system.
It was revealed that CB FPK (LLC) repeatedly violated the statutory requirements on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism in respect of the reliability of information submitted to the authorised body, including operations subject to mandatory control, and completeness of information recorded in settlement documents. The supervisory action against the bank’s activities established ‘shadow’ currency exchange operations which were not recorded in its accounting records and statements submitted to the Bank of Russia.
The Bank of Russia repeatedly applied supervisory measures to CB FPK (LLC), including restrictions on household deposit taking.
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 FPK (LLC) from the banking services market.
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 7 (except for Clause 3 of Article 7) and 7.2 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 compliance with the indicated Federal Law, 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)’.
Following banking licence revocation, in accordance with Bank of Russia Order No. ОD-320, dated 9 February 2018, professional securities market participant licence of CB FPK (LLC) was revoked.
By its Order No. OD-321, dated 9 February 2018, the Bank of Russia appointed a provisional administration to CB FPK (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 have been suspended.
CB FPK (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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