On revocation of banking licence from credit institution JSC NCO Service Financial House and appointment of provisional administration

By Order No. OD-1622, dated 19.06.2017, the Bank of Russia revoked the banking licence from the St. Petersburg-based credit institution Joint-Stock Company Nonbank Credit Organisation Service Financial House (JSC NCO Service Financial House, Registration NO. 3430-K), further referred to as the credit institution. According to the financial statements, as of 01.06.2017, the credit institution ranked 570^th by assets in the Russian banking system. The credit institution is not a member of the deposit insurance system.

Since late 2016, the credit institution has been focused on sham transactions. Besides, the credit institution failed to comply with legislative requirements on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism. The credit institution’s management and owners have failed to take appropriate measures to prevent the credit institution from becoming involved in dubious operations of its clients. Under the circumstances, the Bank of Russia took the decision to withdraw JSC NCO Service Financial House 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 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-1623, dated 19.06.2016, the Bank of Russia has 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.

The reference to the Press Service is mandatory if you intend to use this material.