On Revocation of Banking Licence and Appointment of Provisional Administration
By its Order No. OD-186, dated February 24, 2014, the Bank of Russia has revoked the banking licence of credit institution Commercial Bank SUNZHA (Limited Liability Company) or CB Sunzha LLC (Republic of Ingushetia, Sunzhensky District, Ordzhonikidzevskaya Village) with effect from February 24, 2014.
The Bank of Russia has made a decision on revoking the banking licence due to a failure by the credit institution to meet federal banking laws and Bank of Russia regulations, as well as a repeated violation during a year of the requirements specified by Article 7 (except for Point 3 of Article 7) of the Federal Law “On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism” (AML/CFT), taking into account repeated imposition during the year of sanctions stipulated by the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)”.
CB Sunzha LLC pursued a high-risk credit policy and did not make any loan loss provisions that were adequate to assumed risks. In addition, the bank failed to comply with AML/CFT requirements in terms of timely reporting to an authorised body operations subject to mandatory control and duly identifying its customers. Furthermore, the credit institution was involved in dubious large-volume operations with cash. In 2013, the total value of such operations exceeded 1.8 billion rubles. The executives and owners of the credit institution did not take any measures required to normalize its activities.
By its Order No. OD-187, dated February 24, 2014, the Bank of Russia has appointed a provisional administration to CB Sunzha LLC for the period until the appointment of a receiver pursuant to the Federal Law “On the Insolvency (Bankruptcy) of Credit Institutions” 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 are suspended.
CB Sunzha 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.
As of February 1, 2014, CB Sunzha LLC was ranked 858th by assets in the Russian banking system.
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24.02.2014 00.00.00