As of April 17, 2014 the Bank of Russia has cancelled a banking license held by Commercial Bank Kaspiy (Registration No. 639), based in Makhachkala, the regulator said in a press release.
The regulator decided to apply the measure of last resort, i.e. to revoke the banking license, as the bank failed to fulfill federal laws regulating banking activities, and also the Bank of Russia’s statutory acts.
As the regulator noted, the lending institution pursued a high-risk credit policy and formed no provisions against loan losses that are appropriate to the accepted risks. Moreover, the bank failed to comply with the laws counteracting the legalization (laundering) of criminal income and the financing of terrorist acts, including to timely provide authorities with information on operations that are subject to mandatory control and also measures to determine objectives of its financial and economic activities, the financial standing, business reputation of clients and to identify their beneficial owners.
In addition, the lending institution was involved in large-scale cash operations of suspicious nature. Operations of this kind exceeded Rub 550 mln in 2013. The lending institution’s executives and owners took no required measures to normalize its activities.
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”. Pursuant to the federal laws, the powers and authority of the lending institutions’ executive bodies were suspended.
Commercial Bank Kaspiy was not a member of the national deposit insurance system.
As of April 1, 2014 the lending institution ranked 856 in terms of assets in the Russian banking system.
