On revocation of banking licence from non-bank credit institution LEADER and appointment of provisional administration
By Order No. OD-938, dated 13 April 2018, effective the same date, the Bank of Russia revoked the banking licence of the Moscow-based non-bank credit institution Joint-stock Company LEADER (Registration No.
The operations of the credit institution were found multiple times 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 timely provision, completeness and accuracy of information submitted to the authorised body about operations subject to obligatory control. Furthermore, there arose a considerable amount of non-core assets and bad debt in the credit institution’s balance sheet. The due diligence check of credit risk at the Bank of Russia’s request established a substantial loss of capital and entailed the need for action to prevent the credit institution’s insolvency (bankruptcy), which created a real threat to its creditors’ interests.
The Bank of Russia took supervisory action against the credit institution on more than one occasion.
The management and owners of the credit institution failed to take effective measures to normalise its activities. Under the circumstances the Bank of Russia took the decision to withdraw the non-bank credit institution LEADER from the banking services market.
The Bank of Russia took this measure following the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, repeated violations within a year of the 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 application 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-939, dated 13 April 2018, the Bank of Russia appointed a provisional administration to the credit institution 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.
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