Banking licence of UMK bank revoked
By its Order No. OD-424, dated 19 March 2021, the Bank of Russia revoked the banking licence of the Krasnodar-based OOO (Limited Liability Company) Bank Ujnoy mnogootraslevoy korporation (OOO (LLC) UMK bank) (Registration No. 3495; hereinafter, UMK bank). The credit institution ranked 222nd by assets in the Russian banking system.1 UMK bank is not a member of the deposit insurance system.
The Bank of Russia made this decision in accordance with Clause 6.1 of Part 1 of Article 20 of the Federal Law ‘On Banks and Banking Activities’,2 based on the facts that UMK bank:
- failed to comply with the anti-money laundering and counter-terrorist financing laws.
UMK bank focused on serving the interests of its owners and their related companies accounting for a significant portion of the loan portfolio. In addition, over 70% of the outstanding loans recognised on the credit institution’s balance sheet were of low quality.
Furthermore, in the course of the inspection at UMK bank, the supervisory body detected cases of non-transparent transactions aimed at withdrawing funds abroad and concealing actual financial flows.
The Bank of Russia appointed a provisional administration3 to UMK bank for the period until the appointment of a receiver4 or a liquidator.5 In accordance with federal laws, the powers of the credit institution’s executive bodies were suspended.
1 According to the financial statements as of 1 March 2021.
2 The Bank of Russia made this decision due to repeated violations during one year of the requirements provided for by Article 7 (except Clause 3 of Article 7) of the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’.
3 In accordance with Bank of Russia Order No. OD-425, dated 19 March 2021.
4 In accordance with Articles 127 and 189.68 of the Federal Law ‘On Insolvency (Bankruptcy)’.
5 In accordance with Article 23.1 of the Federal Law ‘On Banks and Banking Activities’.
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19.03.2021 00.00.00