On revocation of banking licence and appointment of provisional administration
By its Order No. OD-2248, dated 28 August 2014, the Bank of Russia revoked the banking licence from the Makhachkala-based credit institution INNOVATION AND COMMERCIAL BANK MESED, LIMITED LIABILITY COMPANY or ICB MESED LLC (Registration No. 184) from 28 August 2014.
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, repeated violations within a year of the requirements of 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 taking into account the repeated application over the past year of supervisory measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
ICB MESED LLC implemented high-risk lending policy connected with placement of funds into low-quality assets. Besides, the bank did not comply with the requirements of the legislation on anti-money laundering and the financing of terrorism in terms of appropriate identification of its customers. The rules of internal controls of the credit institution did not comply with Bank of Russia regulations. The management and owners of the bank have not taken measures required to normalise its activities.
By its Order No. OD-2249, dated 28 August 2014, the Bank of Russia has appointed a provisional administration to ICB MESED 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 August 2014, ICB MESED LLC ranked 718thby assets in the Russian banking system.
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28.08.2014 00.00.00