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On revocation of banking licence from credit institution JSC SNBCO FB and appointment of provisional administration (6/19/2017)

By   /   June 19, 2017  /   Comments Off on On revocation of banking licence from credit institution JSC SNBCO FB and appointment of provisional administration (6/19/2017)

MIL OSI – Source: Central Bank of the Russian Federation in English – Press Release/Statement

Headline: On revocation of banking licence from credit institution JSC SNBCO FB and appointment of provisional administration (6/19/2017)

By Order No. OD-1620, dated 19.06.2017, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Joint-stock Company Settlement Non-Banking Credit Organisation Feedback (JSC SNBCO FB, Registration No. 3502-K), further referred to as the credit institution. According to the financial statements, as of 01.06.2017, the credit institution ranked 571th by assets in the Russian banking system. The credit institution is not a member of the deposit insurance system.
The credit institution’s business was almost entirely focused on ‘shadow’ foreign exchange transactions. Furthermore, the credit institution was actively working towards conducting its business in contempt of anti-money laundering and counter-terrorism legislation which provide for mandatory control of transactions and client identification. Despite the repeated corrective restrictive actions by regulator, meant to suppress the above operations, the credit institution has failed to correct its business as required. Further still, the credit institution’s business operations are found to have been regularly conducted without the appropriate accounting treatment. These facts provide evidence that the credit institution’s management and owners never intended to make appropriate steps towards normalisation of its business operations.
Besides, the credit institution failed to comply with legislative requirements on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism. Under the circumstances, the Bank of Russia took the decision to withdraw JSC SNBCO FB from the banking services market.
The Bank of Russia’s decision is made in connection with non-execution by the credit organization of the federal banking legislation and Bank of Russia regulations, repeated violations, within one year, of requirements provided by Article 7 (excepting Para. 3 of Article 7) of the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’, as well as Bank of Russia regulations related to the above-mentioned Federal Law, considering repeated corrective measures provided by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
By its Order No. OD-1621, dated 19 June 2017, the Bank of Russia has appointed a provisional administration to JSC SNBCO FB for the period until the appointment of a receiver pursuant to the Federal Law ‘On Insolvency (Bankruptcy)’ 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 have been suspended.

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