On revocation of banking licence and appointment of provisional administration
By Order No. OD-1886, dated 25 July 2014, the Bank of Russia revoked the banking licence of the Makhachkala-based credit institution NEW COMMERCIAL BANK, LIMITED LIABILITY COMPANY, or NEW COMMERCIAL BANK LLC (Reg. No. 347) from 25 July 2014.
The Bank of Russia took such an extreme measure — revocation of the banking licence — because of the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, repeated violations within a year of requirements of Article 7 (except for Clause 3 of Article 7) of the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’ and 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 credit institution implemented high-risk lending policy and did not create loan loss provisions adequate to risks assumed. The bank did not comply with the requirements of the legislation on anti-money laundering and the financing of terrorism in terms of appropriate identification of its customers and timely notification of the authorised body of operations subject to obligatory control. Besides, NEW COMMERCIAL BANK LLC was involved in dubious cash transactions with the total amount exceeding 1 billion rubles as of 2013.
By its Order No. OD-1887, dated 25 July 2014, the Bank of Russia has appointed a provisional administration to NEW COMMERCIAL BANK 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.
As of 1 July 2014, NEW COMMERCIAL BANK LLC ranked 829th by assets in the Russian banking system.
The reference to the Press Service is mandatory if you intend to use this material.
25.07.2014 00.00.00