Banking licence from Rial Credit Bank revoked and provisional administration appointed
By its Order No. OD-2717, dated 19.10.2018, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Commercial Bank RIAL CREDIT Limited Liability Company, or CB RIAL CREDIT LLC (Registration No. 3393). According to financial statements, as of 1 October 2018, the credit institution ranked 417th by assets in the Russian banking system. CB RIAL CREDIT LLC is not a member of the deposit insurance system.
CB RIAL CREDIT LLC business model was focused on deriving commission income from currency exchange operations and individual money transfers. The share of the credit portfolio in the bank’s asset structure accounted for no more than 17% and was characterised by low quality: about 50% of issued loans were bad or impaired.
The operations of CB RIAL CREDIT LLC were found to be non-compliant with the law and Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism with regard to the completeness and reliability of information provided to the authorised body about operations subject to obligatory control. In 2018 Q3, the bank was largely involved in suspicious transit cash-out transactions. Given the situation, the bank’s AML/CFT internal control system did not correspond to the risks related to servicing the shadow sector of the economy.
The Bank of Russia repeatedly (3 times over the last 12 months) applied supervisory measures against CB RIAL CREDIT LLC.
Under these circumstances, the Bank of Russia took the decision to revoke the banking licence from CB RIAL CREDIT LLC.
The Bank of Russia took this decision due 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 Article 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’, and the requirements of Bank of Russia regulations issued in compliance with the indicated Federal Law, and taking into account repeated applications within one year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
By its Order No. OD-2718, dated 19.10.2018, the Bank of Russia appointed a provisional administration to CB RIAL CREDIT LLC 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 were suspended.
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