On revocation of banking licence from credit institution ARSENAL and appointment of provisional administration
By its Order No. OD-2725, dated 21 September 2017, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Commercial Bank ARSENAL Limited Liability Company, or CB ARSENAL LLC (Registration No. 3000), further referred to as the credit institution. According to the financial statements, as of 1 September 2017, the credit institution ranked 495th by assets in the Russian banking system.
The credit institution failed to comply with regulatory requirements on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism in the part of identification of operations which are subject to mandatory control, as well as mandatory submission of the true and accurate information on them to the authorised body. The credit institution’s business operations have since 2016 been largely focused on dubious transit transactions.
Furthermore, its operations are built on a risky business model, with a substantial part of its assets being of low quality. The credit institution failed to assess its risks properly.
The Bank of Russia took on more than one occasion supervisory action against the credit institution including the introduction of restrictions on household deposits.
The credit institution’s management and owners failed to take effective action to ensure that their bank be not involved in its clients’ dubious activities. As it stands, the Bank of Russia decided to deny the credit institution the right to operate in the banking market.
The Bank of Russia took this decision in connection with the credit institution’s failure to comply with federal banking laws and Bank of Russia statutory requirements, its repeated violations, within a year, of the Federal Law ’On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’ (Articles 6 and 7 except for Clause 3 of Article 7), as well as Bank of Russia regulations issued in accordance with the said law, and in connection with multiple instances of 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 and depositors.
By its Order No. OD-2726, dated 21 September 2017, the Bank of Russia 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 credit institution is a member of the deposit insurance system. The revocation of the banking licence is an insured event as stipulated by Federal Law No.
The reference to the Press Service is mandatory if you intend to use this material.
21.09.2017 00.00.00