As of March 26, 2014 the Bank of Russia has cancelled a banking license held by Moscow-based Bank Sovincom (Registration No. 2302), the regulator said in a press release.
Based on CBR’s data, transactions executed by the bank’s clients, which are classified as suspicious, topped Rub 6.8 bln.
The regulator decided to take measures of least resort as Bank Sovincom failed to comply with federal laws regulating banking activities and CBR’s statutory acts, and also taking into account the application of measures stipulated by the federal law during the year on numerous occasions.
As the regulator noted, Bank Sovincom failed to form provisions against possible loan losses that are adequate to the risks accepted, nor did it fulfill requirements of the supervisory body’s orders. In addition, the lending institution got involved in suspicious transactions. Bank Sovincom’s internal control regulations for counteraction of legalization (laundering) of criminal income and the financing of terrorist acts did not meet the Bank of Russia’s requirements. The lending institution’s executives and owners took no required measures to normalize its activities.
In accordance with the Bank of Russia’s order, the temporary administration commenced work at the bank until a bankruptcy receiver or a liquidator is appointed. The powers and authority of the lending institutions’ executive bodies were suspended.
Sovincombank is a member of the national deposit insurance system. As of March 1, 2014 the lending institution ranked 697 in terms of assets in the Russian banking system.
