Fines for breaching sectoral laws established for CCCs and ACCCs

The Bank of Russia has set requirements for measures applicable by self-regulatory organisations (SRO) against consumer credit cooperatives (CCC) numbering no more than 3 thousand members, both individuals and (or) legal entities. The Bank of Russia has also established requirements for measures applicable by SROs against agricultural consumer credit cooperatives (ACCC) where the overall number of members and associated members does not exceed 3 thousand individuals and (or) legal entities.

In particular, the document stipulates that the fine for a revealed violation should amount to 0.05% of the individuals’ and legal entities’ total outstanding loans (principal) issued by CCCs (ACCCs) as of the last day of the quarter preceding the one when violations were identified.

The requirements establish other amounts of fines for breaches revealed by SROs repeatedly during one year and (or) entailing consumer rights violations, as well as of fines against CCCs (ACCCs) whose total debt is less than 10 million rubles, CCCs (ACCCs) founded in the same quarter when violations were detected, and CCCs (ACCCs) whose total debt exceeds 200 million rubles.

If the Bank of Russia has already taken measures against a given CCC (ACCC) for breaching sectoral laws, the SRO may not apply any sanctions for the same violation, except the expulsion of such CCC (ACCC) from the SRO.

Relevant measures shall be stipulated in internal standards approved by SROs.

The document is primarily aimed at building a transparent system of the requirements for response measures applicable by SROs and at ensuring their uniform application.

The new ordinance becomes effective 10 days after its publication.