Banking licence of Zlatkombank revoked and provisional administration appointed
By its Order No. OD-3125, dated 6 December 2018, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Joint-stock Company Zlatkombank (Registration No. 568), further also referred to as the credit institution. According to its financial statements, as of 1 November 2018, the credit institution ranked 405th by assets in the Russian banking system.
As JSC Zlatkombank has consistently underestimated credit risk assumed, the Bank of Russia has repeatedly requested that it create additional loan loss provisions.
The credit institution’s operations were found to be non-compliant with the law and Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism with regard to the timeliness, completeness and reliability of information provided to the authorised body about operations subject to mandatory control. Besides, JSC Zlatkombank was involved in dubious transit operations and transactions aimed at withdrawing funds overseas and/or converting them into cash.
The Bank of Russia has repeatedly (4 times over the last 12 months) applied supervisory measures against JSC Zlatkombank, including two restrictions and one ban on household deposit taking.
The credit institution’s operations showed signs of misconduct by its executives who sought to withdraw liquid assets to the detriment of creditors’ and depositors’ interests. The Bank of Russia will submit information about the bank’s transactions suggesting a criminal offence to law enforcement agencies.
Under these circumstances, the Bank of Russia took the decision to revoke JSC Zlatkombank’s banking licence.
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 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 indicated Federal Law, and taking into account repeated application within one year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
By its Order No. OD-3126, dated 6 December 2018, the Bank of Russia appointed a provisional administration to JSC Zlatkombank 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 were suspended.
JSC Zlatkombank is a member of the deposit insurance system. The revocation of a banking licence is an insured event as stipulated by Federal Law ‘On the Insurance of Household Deposits with Russian Banks’ in respect of the bank’s retail deposit obligations, as defined by law. The said Federal Law provides for the payment of indemnities to the bank’s depositors, including individual entrepreneurs, in the amount of 100% of the balance of funds but no more than a total of 1.4 million rubles per depositor.
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