The Bank of Russia which stripped Nazran-based Ringcombank of its license on Monday also announced the revocation of a license from the second (a smaller one of two banks) Ingushetian bank, Sunzha Commercial Bank, (based in the Cossack village Ordzhonokidzevskaya of the Sunzhensky district).
The license was cancelled as the lending institution failed to fulfill federal laws regulating banking activities and CBR’s statutory acts and due to the numerous violation during the year of the requirements provided for in Article 7 (except for Clause 3) of the Federal Law “On Counteracting Legalization (Laundering) of Criminal Income and the Financing of Terrorist Acts”, the regulator said in a press release. The Bank of Russia also noted that measures provided for in the law on the Bank of Russia were applied against the bank many times during the year.
Sunzha Commercial Bank “pursued a high-risk lending policy and formed no provisions against loan losses or other assets that are appropriate to the accepted risks”, the Bank of Russia specified in the press release. Furthermore, based on the Bank of Russia’s data, the bank failed to observe requirements of anti-money laundering laws, failing to timely provide authorities with data on operations that are subject to mandatory supervision and proper identification of its clients”. Meanwhile, as the regulator found out, the bank was involved in suspicious cash operations for over Rub 1.8 bln (in 2013).
The bank’s executives and owners took no necessary measures to bring its activities back to normal, the regulator said in the press release.
Temporary executives were appointed for the bank, and the power and authority of the bank’s management were suspended.
Sunzha Commercial Bank is also a member of the deposit insurance system.
As of February 1, 2014 the bank was a smaller one of two banks in the Republic of Ingushetia, holding assets of Rub 311.77 mln (No. 852 in Russia). In addition, in terms of retail deposits it outran Ringcombank, which also lost its license on Monday, with Rub 42.95 mln vs. Rub 27.27 mln.
