On revocation of banking licence and appointment of provisional administration
By its Order No. OD-3018, dated 27 October 2014, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Settlement Non-Bank Credit Institution Interbank Settlement Centre, limited liability company, SNCI ISC LLC (Registration No.
The Bank of Russia took such an extreme measure — revocation of the banking licence — because of the failure of SNCI ISC LLC to comply with federal banking laws and Bank of Russia regulations, decrease in own funds (capital) below the minimal value of authorised capital established by the Bank of Russia as of the date of the state registration of the credit institution, and the application of supervisory measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
SNCI ISC LLC accounted for securities it actually lacked and presented significantly unreliable financial statements to the Bank of Russia. Resulting the implementation of requirements of the supervisory authority on creating provisions adequate to accepted risks the credit institution lost significant part of its own funds (capital).
Besides, the credit institution was involved in dubious operations connected with overseas money transfer in significant amounts. The rules of internal controls of the credit institution did not comply with Bank of Russia regulations.
The management and owners of the credit institution did not take measures required to normalise its activities and recover its financial status. Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence from SNCI ISC LLC in accordance with Article 20 of the Federal Law ‘On Banks and Banking Activities’.
By its Order No. OD-3019, dated 27 October 2014, the Bank of Russia has appointed a provisional administration to SNCI ISC LLC for the period until the appointment of a receiver pursuant to the Federal Law ‘On the Insolvency (Bankruptcy) of Credit Institutions’ 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 October 2014, SNCI ISC LLC ranked 774th by assets in the Russian banking system.
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27.10.2014 00.00.00