On revocation of banking licence from commercial bank ELBIN and appointment of provisional administration
By its Order No. OD-1077, dated 26 April 2018, the Bank of Russia has revoked the banking licence from the Makhachkala-based credit institution Joint-stock Commercial Bank ELBIN (joint-stock company) or JSC JSCB ELBIN (Registration No. 2267) from 26 April 2018. According to its financial statements, as of 1 April 2018, the credit institution ranked 483rd by assets in the Russian banking system.
The operations of JSC JSCB ELBIN were found 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 completeness and reliability of information provided to the authorised body about operations subject to obligatory control.
The supervisory body also established that JSC JSCB ELBIN conducted foreign exchange operations that were not recorded in its statements submitted to the Bank of Russia. The Bank of Russia submitted the information about these facts bearing signs of a criminal offence to law enforcement agencies.
The Bank of Russia repeatedly applied supervisory measures to JSC JSCB ELBIN, including restrictions on certain operations. 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 JSC JSCB ELBIN 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-1078, dated 26 April 2018, the Bank of Russia has appointed a provisional administration to JSC JSCB ELBIN 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.
JSC JSCB ELBIN 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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