On Revocation of Banking Licence of BANK RCB
OREANDA-NEWS. By its Order No. OD-3139, dated 19 September 2016, the Bank of Russia revoked a banking licence of the credit institution Regional Commercial Bank, joint-stock company, or JSC BANK RCB (Registration No. 836, the Ulyanovsk Region, the town of Dimitrovgrad) from 19 September 2016.
The Bank of Russia took such an extreme measure — revocation of the banking licence — due to the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, repeated violations within a year of requirements, stipulated in Article 7, except for clause 3, Article 7, of the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’, and the application of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’, considering a real threat to the creditors’ and depositors’ interests.
JSC BANK RCB did not comply with the legislative requirements as regards countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism in terms of submitting true and full information on operations subject to mandatory control to the authorised body. Besides, the internal control rules of the credit institution in this field did not meet the Bank of Russia requirements. Given unsatisfactory quality of assets, JSC BANK RCB inadequately assessed the credit risks assumed. Management and owners of the credit institution did not take any effective measures to bring its activities back to normal.
According to reporting data, as of 1 September 2016, JSC BANK RCB ranked 404th in terms of assets in the Russian banking system.