Central Bank of Russia Enforcement Action: Telecommerce Bank

The Central Bank of the Russian Federation (Bank of Russia)

Press Service

12 Neglinnaya Street, Moscow, 107016 Russia; 
www.cbr.ru

Information Notice

On revocation of banking licence from Telecommerce Bank and appointment of provisional administration

 

By its Order No. OD-695, dated 21 March 2018, the Bank of Russia revoked the banking licence from the Tula-based credit institution Joint Stock Company Telecommerce Bank or Telecommerce Bank (Registration No. 3380) from 21 March 2018. According to the financial statements, as of 1 March 2018, the credit institution ranked 416th by assets in the Russian banking system. The bank is not a member of the deposit insurance system.

It was revealed that Telecommerce Bank repeatedly violated law on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism, including, but not limited to, the reliable notification of the authorised body about, among other things, operations subject to obligatory control. Moreover, during 2017 Q4 and 2018 Q1 a sharp increase in the bank’s dubious transit operations and dubious foreign exchange transactions was observed.

In late February 2018, Telecommerce Bank conducted large operations with securities that, according to the information available to the Bank of Russia, were fictitious in nature and were aimed at a large-scale withdrawal of assets. Therefore, the credit institution’s operations showed signs of misconduct by the management who conducted transactions causing direct damage to its creditors’ interests.

Under the circumstances, the Bank of Russia took the decision to withdraw Telecommerce Bank from the banking services market. 

The Bank of Russia took such a decision due to the credit institution’s repeated violations within a year of Bank of Russia requirements stipulated by Article 7 (excluding Clause 3 of Article 7) of Federal Law ’On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’ as well as Bank of Russia regulations issued in accordance with the said law, taking into account a real threat to the interests of creditors.

By its Order No. OD-696, dated 21 March 2018, the Bank of Russia has appointed a provisional administration to Telecommerce Bank for the period until the appointment of a receiver pursuant to the Federal Law ‘On the Insolvency (Bankruptcy)’ or a liquidator under Article 23.1 of the Federal Law ‘On Banks and Banking Activities’. In accordance with federal laws, the powers of the credit institution’s executive bodies have been suspended.

 

21 March 2018

The reference to the Press Service is mandatory if you intend to use this material.

Link:

Central Bank of Russia Press Release

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s