On revocation of banking licence from Bank Star Alliance and appointment of provisional administration
By its Order No. OD-141, dated 25.01.2018, the Bank of Russia revoked the banking licence of the Moscow-based credit institution Commercial Bank Star Alliance Limited, or Bank Star Alliance, Ltd. (Registration No. 3433). According to its financial statements, as of 01.01.2018, the credit institution ranked 536th by assets in the Russian banking system. Commercial Bank Star Alliance Limited is not a member of the deposit insurance system.
It was revealed that Bank Star Alliance, Ltd. repeatedly violated the law on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism, including but not limited to requirements for the complete and reliable notification of the authorised body about operations subject to obligatory control. The supervisors established ‘shadow’ currency exchange operations which were unrecorded in the bank’s statements submitted to the Bank of Russia.
The management and owners of the bank failed to take any effective measures to normalise its activities. As it stands, the Bank of Russia took the decision to withdraw Bank Star Alliance, Ltd. from the banking services market.
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 applications 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-142, dated 25.01.2018, the Bank of Russia appointed a provisional administration to Bank Star Alliance, Ltd. 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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