By its Order No. OD-2051, dated 11 December 2020, the Bank of Russia revoked a banking licence from the Petrozavodsk-based Joint-stock Company Bank Onego, or JSC Bank Onego (Registration No. 2484, hereinafter, the Bank). The credit institution ranked 308th 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 the Bank:
- violated federal banking laws and Bank of Russia regulations, due to which the regulator repeatedly applied measures against it over the past 12 months, which included restrictions on certain banking operations;
- failed to comply with the anti-money laundering and counter-terrorist financing laws.
The Bank’s activities were largely focused on conducting non-transparent funds transfer operations in favour of illegal online casinos, bookmakers, and betting houses.
In addition, the credit institution was involved in conducting dubious clients’ operations to withdraw funds abroad.
The Bank of Russia appointed a provisional administration to JSC Bank Onego3 for the period until the appointment of a receiver4 or a liquidator.5
In accordance with federal laws, the powers of the credit institution’s executive bodies were suspended.
Information for depositors: JSC Bank Onego is a participant in the deposit insurance system, therefore depositors will be compensated for their deposits6 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), excluding the cases stipulated in Chapter 2.1 of the Federal Law ‘On the Insurance of Deposits with Russian Banks’
Deposits are to be repaid by the State Corporation Deposit Insurance Agency (hereinafter, 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/) in the Deposit Insurance/Insurance Events section.
1 According to the financial statements as of 1 December 2020.
2 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 compliance with the indicated Federal Law, 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)’.
3 In accordance with Bank of Russia Order No. OD-2052, dated 11 December 2020.
4 In accordance with Articles 127 and 189.68 of the Federal Law ‘On Insolvency (Bankruptcy)’.
5 In accordance with Article 23.1 of the Federal Law ‘On Banks and Banking Activities’.
6 Depositor means a citizen of the Russian Federation, foreign citizen or person without citizenship, including those who are engaged in entrepreneurial activity, or legal entity specified in Article 5.1 of the Federal Law ‘On the Insurance of Deposits with Russian Banks’, which concluded with a bank a bank deposit/account agreement, 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) designed 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, see the Source Link.