Banking licence of CB PFC-BANK PJSC revoked
By its Order No. OD-64, dated 17 January 2020, the Bank of Russia revoked the banking licence of Moscow-based Public Joint-stock Company Commercial Bank Industrial Financial Cooperation (CB PFC-BANK PJSC) (Reg. No. 2410; hereinafter, PFC-BANK). The credit institution ranked 348th by assets in the Russian banking system.1
The Bank of Russia took this decision in accordance with Clauses 6 and 6.1, Part 1, Article 20 of the Federal Law ‘On Banks and Banking Activities’,2 based on the facts that PFC-BANK:
- failed to comply with the anti-money laundering and counter-terrorist financing laws. The credit institution failed to keep record of operations subject to obligatory control and submit to the authorised body information thereon in a timely manner;
- was mainly engaged in dubious cash operations and dubious transit operations;
- violated federal banking laws and Bank of Russia regulations, making the regulator repeatedly apply supervisory measures over the last 12 months.
The Bank of Russia appointed a provisional administration3 to PFC-BANK for the period until the appointment of a receiver4 or a liquidator.5 In accordance with federal laws, the powers of the credit institution’s executive bodies were suspended.
Information for depositors: PFC-BANK is a participant in the deposit insurance system; therefore, depositors6 will be compensated for their deposits in the amount of 100% of the balance of funds but no more than a total of 1.4 million rubles per depositor (including interest accrued).
Deposits are to be repaid by the State Corporation Deposit Insurance Agency (hereinafter, the Agency). For details of the repayment procedure, depositors may call the Agency’s 24/7 hotline
1 According to the financial statements as of 1 December 2019.
2 The Bank of Russia took this decision due to the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, repeated violations within one year of the requirements stipulated by Articles 6 and 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’, taking into account repeated application within one year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
3 In accordance with Bank of Russia Order No. OD-65, dated 17 January 2020.
4 In accordance with Articles 127 and 189.68 of the Federal Law ‘On Insolvency (Bankruptcy)’.
5 In accordance with Article 23.1 of the Federal Law ‘On Banks and Banking Activities’.
6 Depositors mean individuals, including those who are engaged in entrepreneurial activity (individual entrepreneurs), and legal entities that are considered small businesses in accordance with the Federal Law ‘On the Development of Small and Medium-sized Enterprises in the Russian Federation’.
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