On revocation of banking licence from Joint-stock Commercial Bank New Credit Union and appointment of provisional administration
By its Order No. OD-1079, dated 26 April 2018, the Bank of Russia has revoked the banking licence from the Moscow-based credit institution Joint-stock Commercial Bank New Credit Union (joint-stock company) or JSCB New Credit Union (JSC) (Registration No. 3139) from 26 April 2018. According to its financial statements, as of 1 April 2018, the credit institution ranked 437th by assets in the Russian banking system.
The activity of JSCB New Credit Union (JSC) was 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 timely provision of complete and reliable information to the authorised body about operations subject to obligatory control. The credit institution’s internal controls rules on anti-money laundering and the financing of terrorism did not comply with applicable regulations.
Moreover, the inspections also revealed that the credit institution carried out foreign exchange transactions without recording them in its accounting statements. At the same time, it was found that JSCB New Credit Union (JSC) conducted foreign exchange transactions with individuals, which were inherently detrimental or did not have any economic sense for the credit institution and were non-transparent for supervisory authorities.
The Bank of Russia repeatedly applied supervisory measures against JSCB New Credit Union (JSC), which included restrictions to carry out certain transactions, including household deposit taking.
The management and owners of the bank failed to take any effective measures to normalise its activities. As it stands, the Bank of Russia has taken the decision to withdraw JSCB New Credit Union (JSC) from the banking services market.
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-1080, dated 26 April 2018, the Bank of Russia has appointed a provisional administration to JSCB New Credit Union (JSC) 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.
JSCB New Credit Union (JSC) 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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