On the revocation of banking licence and appointment of provisional administration
By Order No. OD-406, dated 26 March 2014, the Bank of Russia revoked the banking licence of the Yekaterinburg-based closed joint-stock company Saving Investment Bank (JSC Saving Investment Bank) (Registration Number: 1743) from 26 March 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, 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 measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
JSC Saving Investment Bank implemented a high-risk lending policy and failed to make loan loss provisions commensurate with the risks assumed. Moreover, 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, as well as taking measures to set financial and economic goals, establish financial status and business reputations of customers and identify their beneficial owners.
The credit institution was involved in large-scale dubious cash transactions, the amount of which totalled 4.6 billion rubles in 2013. 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-407, dated 26 March 2014, a provisional administration has been appointed to JSC Saving Investment 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.
JSC Saving Investment 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.
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26.03.2014 00.00.00