Banking licence of SNCI WEST revoked

By its Order No. OD-2672, dated 22 November 2019, the Bank of Russia revoked the banking licence of the Moscow-based Settlement Non-bank Credit Institution WEST Limited Liability Company (SNCI WEST LLC) (Reg. No. 2605-K; hereinafter, SNCI WEST). The credit institution ranked 443^rd 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 SNCI WEST:

• Failed to comply with the anti-money laundering and counter-terrorist financing laws. The credit institution failed to identify operations subject to mandatory control and submitted incorrect information to the authorised body;
• Conducted dubious foreign exchange transactions;
• Violated federal banking laws and Bank of Russia regulations, due to which the regulator repeatedly applied supervisory measures against it over the last 12 months.

The core activity of SNCI WEST was foreign exchange transactions. In addition, the inspection carried out by the Bank of Russia revealed multiple breaches of the cash handling procedure in the credit institution’s operations.

The Bank of Russia appointed a provisional administration³ to SNCI WEST 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.

SNCI WEST is not a member of the deposit insurance system.

¹ According to the financial statements as of 1 November 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-2673, dated 22 November 2019.

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’.

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