The Bank of Russia has revoked as of March 18 a banking license held by Russian Land Bank (Registration No. 2810). A relevant press release was posted on CBR’s website.
“The Bank of Russia decided to apply the measure of last resort, i.e. to revoke the bank’s banking license, as Russian Land Bank failed to comply with the federal laws regulating banking activities and CBR’s statutory acts, numerous violation during the year of the requirements provided for in Article 7 (except for Article 7.3.) of the Federal Law “On Counteracting Legalization (Laundering) of Criminal Income and the Financing of Terrorist Acts”, and also given numerous application during the year of the measures provided for in the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)”, the regulator said in a press release.
Furthermore, based on CBR’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. The bank’s internal control regulations did not comply with the Bank of Russia’s requirements. In addition, the lending institution was involved in large-scale cash and also non-cash suspicious operations. Said operations at the bank totaled Rub 15 bln in 2013.
In line with the regulator’s order a temporary administration team was appointed at the bank until the appointment of a receiver in accordance with the Federal Law “On Insolvency (Bankruptcy) of Lending Institutions” or a liquidator in line with Article 23.1 of the Federal Law “On Banks and Banking Activities”. In accordance with federal laws the powers and authority of the lending institution’s executive bodies were suspended.
Russian Land Bank is a member of the national deposit insurance system. As of March 1, 2014 the lending institution ranked 227 in the Russian banking system.
Since March 13, 2014 Russian Land Bank has stopped to serve clients. As reported by the bank on its website, services were suspended due to power supply disruption. And the bank reported on March 14 that its board of directors prematurely terminated the powers and authority of management board chairman Alexander Safronov based on his letter of resignation of his own free will, and the lending institution’s official website became unavailable over the weekend.
