The Bank of Russia has cancelled effective August 18, 2016 a banking license held by GRiS-Bank (Pyatigorsk, Registration No. 1928), the regulator's press service reported.
The regulator decided to take the last-resort measure because the lending institution failed to fulfill federal banking laws and the Bank of Russia's statutory acts, violated many times during the year requirements provided for in Article 7 (except for Clause 3 of Article 7) of the Federal Law "On Counteracting Legalization (Laundering) of Criminal Income and the Financing of Terrorist Acts" and the application of the measures stipulated in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)".
"GRiS-Bank invested funds in weak quality assets and did not form loan loss provisions that are adequate to the accepted risks. Furthermore, the lending institution did not comply with laws aimed at counteracting the legalization (laundering) of criminal income and the financing of terrorist acts as to provide a supervisory body with reliable information," the Bank of Russia pointed out.
GRiS-Bank is not a member of the national deposit insurance system.
