Banking licence of CB Creditinvest Ltd revoked
By its Order No. OD-2609, dated 15 November 2019, the Bank of Russia revoked the banking licence of Limited Liability Company Commercial Bank Creditinvest (CB Creditinvest Ltd) (Reg. No. 1197; Kizilyurt, Republic of Daghestan; hereinafter, Bank Creditinvest). The credit institution ranked 386th by assets in the Russian banking system.1
The Bank of Russia took this decision in accordance with Clauses 6 and 6.1, Part 1, Article 20 of the Federal Law ‘On Banks and Banking Activities’,2 based on the facts that Bank Creditinvest:
- Committed violations of the anti-money laundering and counter-terrorist financing laws and Bank of Russia regulations. The credit institution repeatedly submitted incomplete and incorrect information to the authorised body, including on operations subject to mandatory control;
- Conducted dubious cross-border transactions;
- 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.
The inspection of Bank Creditinvest’s operations revealed multiple violations of Bank of Russia regulations regarding the procedure for performing cash transactions and ensuring information security.
The Bank of Russia appointed a provisional administration3 to Bank Creditinvest 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: Bank Creditinvest is a participant in the deposit insurance system; therefore depositors6 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).
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
1 According to the financial statements as of 01.11.2019.
2 The Bank of Russia took this decision due to 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 accordance with the above 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)’.
3 In accordance with Bank of Russia Order No. OD-2610, dated 15/11/2019.
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 Depositors mean individuals, including those who are engaged in entrepreneurial activity (individual entrepreneurs), and legal entities that are considered small businesses in accordance with the Federal Law ‘On the Development of Small and Medium-sized Enterprises in the Russian Federation’.
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