The Bank of Russia adopted a decision to revoke a banking license from Mezhregfincombank (Moscow) effective July 10, 2009, the PR department of the Central Bank of the Russian Federation reported.
“The license was cancelled due to the lending institution’s failure to comply with federal banking laws and CBR statutory acts, numerous violations during the year of requirements provided for by Article 6 and Article 7 (other than Article 7.3.) of the Federal Law “On Counteracting Legalization (Laundering) of Crime Proceeds and Financing of Terrorist Acts”, and also taking into account the numerous application of supervisory procedures during a year," CBR officials said.
Mezhregfincombank failed to forward data about operations subject to mandatory supervision to the Federal Service for Financial Monitoring. Furthermore, the lending institution did not form any adequate reserves for possible loan losses. From June 15 until July 10, 2009 the banks clients wired around Rub 2.9 bln under queer goods transactions to non-residents. Payees under these transactions were mainly offshore companies that hold accounts with banks from Ukraine, Cyprus and Lithuania. During this period the lender executed transactions with signs of monetization for roughly Rub 1.2 bln.
In accordance with the CBR order, a temporary administration commenced work at the bank until a bankruptcy receiver or a liquidator is appointed. In accordance with federal laws the powers and authority of the lending institutions executive bodies were suspended.
For the record, Mezhregfincombank is not a member of the national deposit insurance system.