On revocation of banking licence from credit institution CB CREDO FINANCE and appointment of provisional administration
By its Order No. OD-2405, dated 28 July 2016, the Bank of Russia revoked the banking licence of the Makhachkala-based credit institution Commercial bank CREDO FINANCE Ltd (Registration No. 793, the city of Makhachkala) from 28 July 2016.
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, because of the repeated violations within one 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’, and also the requirements of Bank of Russia regulations issued in pursuance of the said Federal Law, and taking into account the application of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
Commercial bank CREDO FINANCE Ltd failed to comply with the requirements of law and Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism with regard to submitting information to the authorised body on time and in full. Besides, the credit institution’s internal control rules concerning these issues were not in line with the Bank of Russia’s requirements. The management and owners of the credit institution did not take effective measures to normalise its activities.
By its Order No. OD-2406, dated 28 July 2016, the Bank of Russia has appointed a provisional administration to Commercial bank CREDO FINANCE Ltd 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.
Commercial bank CREDO FINANCE Ltd 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 the financial statements, as of 1 July 2016, Commercial bank CREDO FINANCE Ltd ranked 624th by assets in the Russian banking system.
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28.07.2016 00.00.00