On the revocation of banking licence and appointment of provisional administration
By Order No. OD-803, dated 24 April 2014, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Commercial Bank Mestny Credit, a limited liability company (LLC CB MC Bank) (Registration No. 3370), from 24 April 2014.
The Bank of Russia took such an extreme measure — revocation of the banking licence — because of the LLC CB MC Bank’s failure to comply with federal banking laws and Bank of Russia regulations, as well as 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’, taking into account the repeated application over the past year of supervisory measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
The bank failed to comply with the requirements of legislation on anti-money laundering and combatting the financing of terrorism, including with respect to the timely submitting to the authorised body of data on operations subject to mandatory control. The credit institution was involved in dubious transactions. In 2013, the amount of suspicious operations by customers to withdraw funds abroad under foreign trade contracts exceeded 5.5 billion rubles. Internal control rules with regard to anti-money laundering and combatting the financing of terrorism at the LLC CB MC Bank did not correspond to Bank of Russia requirements. The management and owners of the credit institution failed to take effective measures to bring the situation back to normal.
In pursuance of Bank of Russia Order No. OD-804, dated 24 April 2014, a provisional administration has been appointed to the LLC CB MC 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.
As of 1 April 2014, the LLC CB MC Bank ranked 699th in the Russian banking system in terms of assets.
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24.04.2014 00.00.00