On revocation of banking licence of the non-banking credit institution Transit and appointment of provisional administration
By its Order No.OD-2967, dated 7 September 2016, the Bank of Russia revoked the banking licence of the Makhachkala-based settlement non-banking credit institution Transit (limited liability company) or NCI Transit LLC (Registration No.
The Bank of Russia took such an extreme measure — revocation of the banking licence — because of the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, application of measures stipulated by the Federal Law ’On the Central Bank of the Russian Federation (Bank of Russia)’ and taking into account a real threat to creditors’ interests.
Fulfillment by HCI Transit LLC of the supervisor’s demand to set up reserves for illegally discounted promissory notes has produced the grounds for taking insolvency (bankruptcy) prevention measures. Credit institution’s internal control rules to counter the legalisation (laundering) of criminally obtained incomes and the financing of terrorism did not comply with Bank of Russia regulations. Both management and owners of the credit institution did not take any effective measures to bring its activities back to normal. Under the circumstances the Bank of Russia took a decision to take out the credit institution from the banking services market.
By its Order No. OD-2968, dated 7 September 2016, the Bank of Russia has appointed a provisional administration to HCI Transit LLC for the period until the appointment of a receiver pursuant to the Federal Law ‘On the 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 are suspended.
According to the financial statements, as of 1 August 2016, HCI Transit LLC ranked 650th by assets in the Russian banking system.
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07.09.2016 00.00.00