On revocation of banking licence from credit institution Regionfinancebank and appointment of provisional administration
By Order No. OD-3243, dated 17 November 2017, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Commercial Bank Regional Finances LTD or CB Regionfinancebank LTD (Registration No. 3357) from 17 November 2017. According to the financial statements, as of 1 November 2017, the credit institution ranked 480th by assets in the Russian banking system. CB Regionfinancebank LTD is not a member of the deposit insurance system.
The business of CB Regionfinancebank LTD was aimed at conducting ‘shadow’ currency exchange operations which were not reflected in the accounting and statements submitted to the Bank of Russia. Moreover, the credit institution conducted this activity despite the regulator-imposed ban. It was revealed that the bank repeatedly violated the statutory requirements on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism in respect of the completeness and reliability of information submitted to the authorised body, including operations subject to mandatory control.
The Bank of Russia repeatedly applied supervisory measures to CB Regionfinancebank LTD, including the ban and restrictions on certain operations.
The management and owners of the bank did not take effective measures to normalise its activities. Under the circumstances, the Bank of Russia took the decision to withdraw CB Regionfinancebank LTD 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 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’, and the requirements of Bank of Russia regulations issued in pursuance thereof, 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-3244, dated 17 November 2017, the Bank of Russia has appointed a provisional administration to CB Regionfinancebank 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 have been suspended.
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17.11.2017 00.00.00