Effective June 21, 2016 the Bank of Russia has revoked a banking license held by Russian Trade Industrial Bank (Ruscobank, Registration No. 138), which is based in Vsevolozhsk (the Leningrad region). The relevant information was posted on the regulator's website.
As the regulator pointed out, the decision to take the last-resort measure was taken because the lending institution failed to comply with federal banking laws, and the Bank of Russia's statutory acts, violated many times during a year requirements provided for in Article 6 and Article 7 (except for Article 7.3) of the Federal Law "On Counteracting the Legalization (Laundering) of Criminal Income and the Financing of Terrorist Acts", and requirements of the Bank of Russia's statutory acts that were issued in accordance with the above federal law and measures stipulated in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)" were applied. The regulator took into account a real threat to the interests of the bank's creditors and deposit holders.
The Bank of Russia specified that Ruscobank pursued a high-risk credit policy by investing funds in poor quality assets. The adequate assessment of the bank's accepted risks, at the request of a supervisory body, has resulted many times in a substantial decline in its equity (capital) and reasons to take measures to prevent the lending institution's insolvency (bankruptcy). Moreover, the bank did not comply with the requirements of laws and the Bank of Russia's statutory acts with regard to measures to counteract legalization (laundering) of criminal income and the financing of terrorist acts as to timely and accurately provide information to an authorized body.
By its order the Bank of Russia appointed a temporary administration team at the bank until a receiver or a liquidator is appointed. In accordance with the federal laws, the powers and authority of the lending institution's executive bodies were suspended.
Ruscobank is a member of the national deposit insurance system, and the revocation of a banking license is an accident insures, the Bank of Russia notes.