By its Order No. OD-283, dated 11 February 2022, the Bank of Russia revoked the banking licence of the Astrakhan-based Joint Stock Company ‘Conservative commercial bank’ (Reg. No. 1087; hereinafter, JSC Bank CCB). The credit institution ranked 164th by assets in the Russian banking system.1
The Bank of Russia made this decision in accordance with Clauses 6 and 6.1 of Part 1 of Article 20 of the Federal Law ‘On Banks and Banking Activities’,2 based on the facts that JSC Bank CCB:
- violated federal banking laws and Bank of Russia regulations, due to which the regulator repeatedly applied supervisory measures against it over the last 12 months, including restrictions on a number of banking operations;
- failed to comply with the anti-money laundering and counter-terrorist financing laws.
JSC Bank CCB actually did not carry out traditional banking activity and specialised in e-commerce services. JSC Bank CCB took no measures to explore the economic purpose of its clients’ transactions, whereas the sources of funds used in them lacked transparency. The credit institution’s operations were characterised by increased risks of its involvement in servicing unlawful gambling business and illegal financial market participants.
By its Order No. OD-284, dated 11 February 2022, the Bank of Russia appointed the State Corporation Deposit Insurance Agency (hereinafter, the Agency) as a provisional administration to manage JSC Bank CCB. The provisional administration will carry out its activity until the appointment of a receiver3 or a liquidator.4 In accordance with federal laws, the powers of the credit institution’s executive bodies were suspended.
Information for depositors: JSC Bank CCB is a participant in the deposit insurance system; therefore, its depositors will be compensated for their deposits in the amount of 100% of the balance of funds, but no more than a total of 1.4 million rubles per depositor (including interest accrued), taking into account the conditions stipulated by Chapter 2.1 of the Federal Law ‘On the Insurance of Deposits with Russian Banks’.
Deposits are to be repaid by the Agency. Depositors may obtain detailed information regarding the repayment procedure 24/7 at the Agency’s hotline (8 800 200-08-05) and on its website (https://www.asv.org.ru/).
1 According to the financial statements as of 1 January 2022.
2 The Bank of Russia made 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 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 the requirements of Bank of Russia regulations issued in compliance with the said Federal Law, and taking into accountthe repeated application within one year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
3 In accordance with Articles 127 and 189.68 of the Federal Law ‘On Insolvency (Bankruptcy)’.
4 In accordance with Article 23.1 of the Federal Law ‘On Banks and Banking Activities’.
5 Depositor is a citizen of the Russian Federation, foreign citizen or person without citizenship, including those engaged in entrepreneurial activity, or a legal entity specified in Article 5.1 of the Federal Law ‘On the Insurance of Deposits with Russian Banks’ which concluded a bank deposit/account agreement with a bank, or any of the above mentioned persons in whose favour the deposit was made and (or) who is the holder of a savings certificate, or an owner of a special account (special deposit) intended to form and use the fund of capital repairs of common property in an apartment house opened in accordance with the requirements of the Housing Code of the Russian Federation.
This news item was originally published by the Central Bank of the Russian Federation (CBR RU). For more information, please see the Source Link.