Banking licence of RADIOTECHBANK revoked and provisional administration appointed
By Order No. OD-209, dated 31 January 2019, effective from the same date, the Bank of Russia revoked the banking licence of the Nizhny Novgorod-based credit institution Public Joint-stock Company Nizhny Novgorod Commercial Bank RADIOTECHBANK, or PJSC NCB RADIOTECHBANK (Registration No. 1166). According to its financial statements, as of 1 January 2019 the credit institution ranked 276th by assets in the Russian banking system.
In its operations, PJSC NCB RADIOTECHBANK failed to comply with laws and Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism with regard to prompt identification of operations subject to mandatory control, as well as submitting complete and reliable information to the authorised body. Moreover, PJSC NCB RADIOTECHBANK was involved in dubious transit operations. Therefore, AML/CFT internal controls of the bank proved inefficient. These circumstances showed that the management and owners of the credit institution were reluctant to take any efficient measures to preclude the bank’s involvement in suspicious activity of its customers.
The Bank of Russia repeatedly (seven times over the last 12 months) applied supervisory measures against PJSC NCB RADIOTECHBANK, including impositions of restrictions on household deposit taking.
Under these circumstances, the Bank of Russia took the decision to revoke PJSC NCB RADIOTECHBANK’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 applications within one year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
Following the banking licence revocation, PJSC NCB RADIOTECHBANK’s professional securities market participant licence was also cancelled.
By its Order No. OD-2910, dated 31 January 2019, the Bank of Russia appointed a provisional administration to the credit institution 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.
PJSC NCB RADIOTECHBANK 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 Deposits with Russian Banks’ in respect of the bank’s deposit obligations. This Federal Law stipulates the procedure and amount of insurance indemnities to the bank’s depositors.
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