MIL OSI – Source: Central Bank of the Russian Federation in English –
Headline: On CB DS-Bank LLC operations (5/25/2016)
The Bank of Russia found, in the course of its supervisory actions with respect to the Moscow-based Commercial Bank Dynamic Systems (Limited Liability Company), hereinafter referred to as the credit institution, that its financial statements submitted fail to reflect appropriately its real financial state because of credit exposure misstatements.
The Bank of Russia requested that the credit institution establish additional provisions for outstanding loans and submit reliable financial statements, the requirement the credit institution failed to comply with.
The credit institution-provided financial misstatements gave rise to qualify its operations as indicative of the need to appoint a temporary administration in keeping with the Clause 2 Part 1 Article 189.26 of the Federal Law ‘On Insolvency (Bankruptcy’).
Consequently, the credit institution’s management concealed the regulatory grounds calling for the appointment, in accordance with the legislation of the Russian Federation, of a temporary administration; the latter fact being indicative of a criminal offence in accordance with Article 172.1 of the RF Criminal Code.
The Bank of Russia decided to revoke (Order ОD-1479, dated 12 May 2016) a banking licence from Commercial Bank Dynamic Systems, Limited Liability Company, effective 12 May 2016.
The Bank of Russia has submitted the information on the executives’ actions indicative of criminal financial operations to the Investigative Committee of the Russian Federation for consideration and procedural decision making.