Banking licence of LLC Commercial Agroindustrial Bank of Stary Oskol revoked

By its Order No. OD-2730, dated 29 November 2019, the Bank of Russia revoked the banking licence of Limited Liability Company Commercial Agroindustrial Bank of Stary Oskol (Reg. No. 1050; Stary Oskol, Belgorod Region; hereinafter, LLC Commercial Agroindustrial Bank of Stary Oskol). The credit institution ranked 332^nd 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 Commercial Agroindustrial Bank of Stary Oskol:

• Failed to comply with the anti-money laundering and counter-terrorist financing laws. The credit institution did not identify transactions subject to mandatory control and did not submit related information to the authorised body;
• Regularly understated the value of required loan loss provisions to be formed;
• Conducted dubious increased-risk transit transactions for tax evasion;
• 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 Bank of Russia appointed a provisional administration³ to Commercial Agroindustrial Bank of Stary Oskol 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: Commercial Agroindustrial Bank of Stary Oskol 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). Depositors may obtain detailed information regarding the repayment procedure 24/7 at the Agency’s hotline (8 800 200-08-05) and on its website (https://www.asv.org.ru/) in the Deposit Insurance / Insurance Events section.

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-2731, dated 29 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’.

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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