Banking licence of SOYUZNY Bank revoked and provisional administration appointed
By its Order No. OD-2787, dated 25 October 2018, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Commercial Bank SOYUZNY Limited Liability Company or Bank SOYUZNY Ltd (Registration No. 3236) from 25 October 2018. According to its financial statements, as of 1 October 2018, the credit institution ranked 239th by assets in the Russian banking system.
The business model of Bank SOYUZNY Ltd was focused on issuing loans and bank guarantees to legal entities. The supervisor revealed underestimation of credit risk on a regular basis; this called for repeated supervisory measures aimed at the adequate assessment of the risks assumed by the bank.
Furthermore, the operations of Bank SOYUZNY Ltd 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.
Bank SOYUZNY Ltd has long been in the purview of the Bank of Russia due to the bank’s suspicious transit transactions. The bank failed to reduce these transactions despite the supervisor’s efforts. Moreover, in the third quarter of 2018 the bank carried out high-risk customer transactions associated with sales of cash revenues by retailers. These circumstances showed that the management and owners of the credit institution were reluctant to take any efficient measures to preclude the bank’s involvement in suspicious activity of its customers.
The Bank of Russia repeatedly (6 times over the last 12 months) applied supervisory measures against Bank SOYUZNY Ltd, including the imposition of restriction on household deposit taking.
Under these circumstances, the Bank of Russia took the decision to revoke the banking licence from Bank SOYUZNY Ltd.
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)’.
Following banking licence revocation, Bank SOYUZNY Ltd’s professional securities market participant licence was cancelled.
By its Order No. OD-2788, dated 25 October 2018, the Bank of Russia appointed a provisional administration to Bank SOYUZNY Ltd 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.
Bank SOYUZNY 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.
The reference to the Press Service is mandatory if you intend to use this material.