The Bank of Russia has cancelled effective January 23, 2017 a banking license held by Omsk-based Bank Sirius (Registration No. 3506), the regulator's press service reported.
The Bank of Russia decided to take the last-resort measure because the bank failed to fulfill federal banking laws and the regulator's statutory acts, violated many times during a year the requirements provided for in Article 7 (except for Clause 3 of Article 7) of the Federal Law "On Preventing Legalization (Laundering) of Criminal Income and the Financing of Terrorist Acts", and also requirements of the Bank of Russia's statutory acts that were issued in accordance with the said federal law, and taking into account the use of the measures stipulated in the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)".
"While investing funds in weak quality assets Siberian lender Bank Sirius substantially underestimated relevant risks. Upon execution of the supervisory body's demands to compile provisions adequate to the accepted risks, grounds arose in the lending institution's operations to take measures to prevent tha bank's insolvency (bankruptcy). Furthermore, the bank did not comply with the requirements of laws or the Bank of Russia's statutory acts as to counteract legalization (laundering) of criminal income and the financing of terrorist acts by providing the authorized body with reliable information on operations that are subject to mandatory control," the Bank of Russia noted.
The Bank of Russia emphasized that the lending institution's management and owners did not take any efficient measures to normalize its activities.
For the record, in November 2016 the bank violated for 21 days the common equity adequacy ratio (N1.1) and the core capital adequacy ratio (N1.2). As of early December 2016 these ratios were negative, while the capital adequacy ratio (N1) was met with a substantial reserve (20.72% vs. the minimum 8% threshold). It should also be noted that Bank Sirius's capital was below the minimum Rub 300 mln threshold on December 1, 2016.
