On revocation of banking licence from Kredit Express and appointment of provisional administration
By Order No. OD-629, dated 15 March 2018, the Bank of Russia revoked the banking licence of the Rostov-on-Don-based credit institution limited liability company Commercial Bank Kredit Express or LLC CB Kredit Express (Registration No. 3186) from 15 March 2018. According to the financial statements, as of 1 March 2018, the credit institution ranked 372nd by assets in the Russian banking system.
It was revealed that LLC CB Kredit Express repeatedly violated law on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism, including, but not limited to, the complete and reliable notification of the authorised body about, among other things, operations subject to obligatory control.
The due diligence check of the accepted credit risk at the regulator’s request established a substantial loss of capital and entailed the need for action to prevent the credit institution’s insolvency (bankruptcy), which created a real threat to its creditors’ and depositors’ interests.
The Bank of Russia repeatedly applied supervisory measures to LLC CB Kredit Express, including two impositions of restrictions on household deposit taking.
The credit institution’s management and owners failed to take effective measures to normalise its activities. As it stands, the Bank of Russia took the decision to withdraw LLC CB Kredit Express from the banking services market.
The Bank of Russia took such an extreme measure 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 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’ as well as Bank of Russia regulations issued in accordance with the said law and application of the measures stipulated by the Federal Law ’On the Central Bank of the Russian Federation (Bank of Russia)’, taking into account a real threat to the interests of creditors and depositors.
By its Order No. OD-630, dated 15 March 2018, the Bank of Russia appointed a provisional administration to LLC CB Kredit Express for the period until the appointment of a receiver pursuant to the Federal Law ‘On 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 have been suspended.
LLC CB Kredit Express is a member of the deposit insurance system. The revocation of the banking licence is an insured event as stipulated by Federal Law No.
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