On revocation of banking licence and appointment of provisional administration
By its Order No. OD-2651, dated 30 September 2014, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Commercial Bank SOYUZPROMBANK, limited liability company, or CB SOYUZPROMBANK LLC (Registration No. 2965) from 30 September 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, and application within a year of supervisory measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
CB SOYUZPROMBANK LLC implemented high-risk lending policy and did not create loan loss provisions adequate to the risks assumed. The rules of internal controls of the bank did not comply with Bank of Russia requirements in the field of anti-money laundering and the financing of terrorism. Besides, the credit institution was involved in dubious operations connected with overseas money transfer. The management and owners of the bank did not take measures required to normalise its activities.
By its Order No. OD-2652, dated 30 September 2014, the Bank of Russia has appointed a provisional administration to CB SOYUZPROMBANK 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 September 2014, CB SOYUZPROMBANK LLC ranked 592nd by assets in the Russian banking system.
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30.09.2014 00.00.00