On revocation of banking licence from credit institution Kontinent Finans and appointment of provisional administration

By its Order No. OD-2242, dated 9 August 2017, the Bank of Russia revoked the banking licence from the Moscow-based credit institution non-bank credit institution Kontinent Finans (public joint-stock company) or NCI Kontinent Finans (PJSC) (Registration No. 149-K) from 9 August 2017. According to the financial statements, as of 1 July 2017, the credit institution ranked 568^th by assets in the Russian banking system. NCI Kontinent Finans (PJSC) is not a member of the deposit insurance system.

Besides, the NCI failed to comply with law on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism, including, but not limited to, the credible notification of the authorised body about operations subject to obligatory control. Furthermore, the credit institution carried out dubious cash out transactions to purchase and sale investment-grade coins of precious metals. The management and owners of NCI Kontinent Finans (PJSC) have failed to take appropriate measures to prevent the credit institution from becoming involved in dubious operations of its customers. Under the circumstances, the Bank of Russia took the decision to withdraw NCI Kontinent Finans (PJSC) 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 Article 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 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)’.

By its Order No. OD-2243, dated 9 August 2017, the Bank of Russia has appointed a provisional administration to NCI Kontinent Finans (PJSC) 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 bodies have been suspended.

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