As of February 24, the Central Bank of Russia has cancelled a banking license held by Nazran-based Ringcombank (Russian-Ingushetian Commercial Bank).
As the Bank of Russia’s press service reported, a decision to apply the last extreme measure to the bank was taken as Ringcombank violated many times during the year the requirements stipulated in Article 7 (except for Clause 3) of the Federal Law “On Counteracting Legalization (Laundering) of Criminal Income and the Financial of Terrorist Acts”.
“The bank failed to comply with the requirements of laws relating to the counteraction of legalization (laundering) of criminal income and the financing of terrorist acts," the Bank of Russia stated. The regulator thinks that the lending institution was involved “in suspicious operations to give cash to corporate clients, individual entrepreneurs and also provide money from retail accounts”. Based on CBR’s data, these operations totaled around Rub 6 bln in 2013.
Internal control regulations, which were applied at Ringcombank in relation to the counteraction of legalization of criminal income, were not in compliance with the Bank of Russia’s requirements, and also the lending institution failed to timely provide authorized bodies with data on operations that are subject to mandatory control, the regulator emphasized in the press release.
A temporary administration was appointed at the bank until the appointment of a receiver or a liquidator. The powers and authority of the bank’s executive bodies were suspended.
Ringcombank is a member of the national deposit insurance system, while the revocation of a license, as CBR noted, is an incident insured.
In line with the Banki.ru rating, as of February 1, 2014 Ringcombank’s retail deposits were equal to Rub 27.27 mln. In terms of assets Ringcombank was the largest of two banks in the Republic of Ingushetia, and as of February 1 it ranked 742nd nationwide (Rub 899.40 mln).
