The PR department of the Bank of Russia announced the revocation of a banking license held by Nash Bank (Moscow), and also the cancellation of the license held by Rabobank (Moscow).
Nash Bank’s banking license was cancelled as it violated the federal laws that regulate banking activities and CBR’s statutory acts, many times breached within one year the requirements of the Federal Law “On Counteracting the Legalization (Laundering) of Criminal Income and the Financing of Terrorist Acts”, and taking into account the application of supervisory measures on numerous occasions. In the middle of and at the end of 2010 the bank failed to notify the Federal Financial Monitoring Service about operations subject to mandatory control, and also did not update information about its customers in a timely fashion. In addition, the bank did not form adequate reserves against possible loan losses, failed to comply with accounting regulations and the procedure for conducting cash operations.
“In the second half of 2010 and in early 2011 the bank and its customers wired to non-residents’ accounts at foreign banks amounts equivalent to around Rub 6 bln as payment for transactions with goods and promissory notes that have signs of being incompliant with their declared purposes. Moreover, from October 2010 through January 2011 on doubtful grounds the bank granted to customers amounts exceeding Rub 800 mln," the regulator’s PR department reported.
The Central Bank of the Russian Federation decided to appoint a temporary administration team at Nash Bank until a bankruptcy manager or a liquidator is appointed. In accordance with the federal laws the powers and authority of the lending institution’s executive bodies were suspended. The bank is a member of the national deposit insurance system.
Rabobank’s license was cancelled, as the lending institution’s authorized body adopted a decision to discontinue operations via the bank’s winding-up. Taking into account data provided by the lender, the lending institution holds sufficient funds to meet creditor claims. The liquidation committee was appointed.
