Bank of Russia Revoked Licenses from Two Banks
OREANDA-NEWS On October 9, 2020, the Bank of Russia revoked the license for banking operations from Maysky Bank (town of Maysky, Kabardino-Balkar Republic) and Prokhladny Bank (town of Prokhladny, Kabardino-Balkarian Republic). These banks had been participating in the deposit insurance system ranked 350th and 348th in the banking system of the Russian Federation, the regulator said in a statement.
As the Central Bank reports, the Maysky and Prokhladny banks occasionately violated federal laws regulating banking activities, as well as regulations of the Bank of Russia, including underestimating the amount of reserves required for the formation of reserves for possible losses, in connection with which the regulator over the past 12 months repeatedly applied measures to them, including imposing restrictions on attracting funds from individuals.
Moreover, Mayskiy Bank is accused in violating the legislation in the field of combating the legalization of proceeds from crime and the financing of terrorism. The bank did not fulfill the obligation to document the operations subject to mandatory control, and to send information about them to the authorized body within the statutory period. Now the information about the operations carried out by the bank "Maisky", which have signs of committing criminal acts, will be sent to law enforcement department.
At the moment the powers of the banks have been suspended. Maisky and Prokhladny will be administered by the representatives of the Bank of Russia, who will operate until the appointment of a bankruptcy administrator or liquidator.
Meanwhile the Deposit Insurance Agency informs that payments of insurance compensation to depositors of the Maysky and Prokhladny banks will be done not later than October 23, 2020.