On the revocation of banking licence and appointment of provisional administration
By Order No. OD—330, dated 18 March 2014, the Bank of Russia revoked the banking licence of the Moscow-based Joint-Stock commercial bank “Russian land bank” (JSCB Russian Land Bank) from 18 March 2014.
The Bank of Russia took such an extreme measure — revocation of the banking licence — because of JSCB Russian Land Bank’s failure to comply with federal banking laws and Bank of Russia regulations, as well as its repeated violations over the past 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’, and also taking into account the repeated application over the past year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
The bank did not comply with the requirements of legislation on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism in respect to proper identification of its customers and submitting to the authorised body data on operations subject to mandatory control. The internal control rules at JSCB Russian Land Bank did not correspond to Bank of Russia requirements. At the same time, the credit institution was involved in large-scale dubious cash and cashless transactions, the total amount of which stood at 15 billion roubles in 2013.
In pursuance of Bank of Russia Order No. OD—331, dated 18 March 2014, a provisional administration has been appointed to JSCB Russian Land Bank for a term until the appointment of a receiver in accordance with the Federal Law ‘On the Insolvency (Bankruptcy) of Credit Institutions’ or a liquidator in accordance with Article 23.1 of the Federal Law ‘On Banks and Banking Activities’. In compliance with federal laws the powers of the credit institution’s executive bodies have been suspended.
JSCB Russian Land Bank is a participant in the deposit insurance system. The revocation of the banking licence is recognised as an insured event stipulated by Federal Law No. 177‑FZ ‘On the Insurance of Household Deposits in Russian Banks’ with regard to the bank’s obligations to honour household deposits identified in accordance with the procedure established by law.
As of 1 March 2014, JSCB Russian Land Bank ranked 227th in the Russian banking system in terms of assets.
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