On revocation of banking licence of credit institution Centrcombank and appointment of provisional administration
By its Order No. OD-3256, dated 26 September 2016, the Bank of Russia revoked a banking licence of the Moscow-based credit institution Central Commercial Bank, limited liability company, or Centrcombank LLC (Registration No. 2983) from 26 September 2016.
The Bank of Russia took such an extreme measure — revocation of the banking licence — due to the credit institution’s failure to comply with the federal banking laws and the Bank of Russia regulations, repeated violations within a year of requirements, stipulated in Article 7, except for clause 3, Article 7, of the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’ and the requirements of the Bank of Russia regulations issued in compliance with the said Federal Law, and the repeated application within a year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’, considering a real threat to the creditors’ and depositors’ interests.
Centrcombank LLC implemented high-risk lending policy connected with placement of funds into low-quality assets. Creation of loss provisions adequate to the risks assumed as required by the supervisor resulted in the grounds for the credit institution to implement measures to prevent the bank’s insolvency (bankruptcy). Centrcombank LLC did not comply with the legislative requirements and Bank of Russia regulations as regards countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism in terms of submitting consistent information on operations subject to mandatory control to the authorised body. Besides, the bank was involved in dubious transit operations. Management and owners of Centrcombank LLC did not take any efficient and sufficient measures to bring its activities back to normal. Under the circumstances the Bank of Russia took a decision to withdraw the credit institution from the banking services market.
By its Order No. OD-3257, dated 26 September 2016, the Bank of Russia has appointed a provisional administration to Centrcombank LLC for the period until the appointment of a receiver pursuant to the Federal Law ‘On the 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 are suspended.
Centrcombank LLC is a member of the deposit insurance system. The revocation of the banking licence is an insured event as stipulated by Federal Law No.
According to reporting data, as of 1 September 2016, Centrcombank LLC ranked 206th in terms of assets in the Russian banking system.
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26.09.2016 00.00.00