Revocation of banking licence from International Settlement Bank and appointment of provisional administration
By Order No. OD-682, dated 28.03.2019, the Bank of Russia revoked the banking licence of the Moscow-based Commercial Bank International Settlement Bank Limited Liability Company, or International Settlement Bank (Registration No. 3028), from 28.03.2019. According to its financial statements, as of 01.03.2019 the credit institution ranked 389th by assets in the Russian banking system. The bank is not a member of the deposit insurance system.
International Settlement Bank specialised in currency exchange operations and individual fund transfers. The bank was largely involved in dubious transactions with cash foreign currency, as well as transit operations. Several facts showed that the credit institution’s management were reluctant to take any efficient measures to stop the specified activities.
It was revealed that International Settlement Bank repeatedly violated law and Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism (AML/FT). The credit institution failed to fulfil its statutory obligations with regard to the completeness and reliability of information provided to the authorised body, including about operations subject to obligatory control.
The Bank of Russia repeatedly (four times over the last 12 months) applied measures against International Settlement Bank.
Under these circumstances, the Bank of Russia took the decision to revoke the banking licence from International Settlement Bank.
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 Articles 7 (except for Clause 3 of Article 7) and 7.2 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-683, dated 28.03.2019, the Bank of Russia appointed a provisional administration to International Settlement Bank 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.
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