#AceFinanceNews – MOSCOW- March 26 – Russia’s Central Bank(CBR) has revoked licenses from three banks.
“According to order #OD-406 of the Bank of Russia dated March 26, 2014, the license for banking transactions has been revoked from crediting organization Sberinvestbank, CJSC (registration #1743, Yekaterinburg) as of March 26, 2014,” the regulator’s message says.
This measure has been applied due to “crediting organization’s non-compliance with federal legislation regulating banking activity, as well as with standard act of the Bank of Russia”.
A similar measure has been applied to My Bank — Ipoteka and Sovincom commercial bank.
According to the Central Bank of Russia, Sovincom commercial bank did not accumulate reserves adequate to risks of possible credit losses, and did not fulfil the requirements of the watchdog’s instructions. In addition, the crediting organization was involved in ambiguous transactions, the watchdog noted in its statement. In 2013, the volume of clients’ transactions with signs of ambiguous operations exceeded 6.8 billion rubles ($191.3 million).
Non-banking crediting organization EnergoBusiness was also stripped from license.
The Bank of Russia said EnergoBusiness violated the procedure of keeping accounting records, did not provide proper internal controls, “committed violations of Central Bank orders on countering legalization of criminally received incomes and funding terrorism”.
In terms of assets volume, the crediting organization ranked 875th in Russia’s banking system as of March 1, 2014.
The main reason for large-scale and detailed inspections of Russian banking system is to fight suspicious financial transactions, CBR Chair Elvira Nabiullina said earlier.
Russian Finance News