OREANDA-NEWS. By its Order No. OD-1214, dated 13 April 2016, the Bank of Russia revoked the banking licence from the Moscow-based credit institution OCEAN BANK, joint-stock company, or OCEAN BANK JSC (registration No. 1697) from 13 April 2016.

The Bank of Russia took such an extreme measure - revocation of the banking licence - because of the credit institution's failure to comply with federal banking laws and Bank of Russia regulations, repeated violations within a year of the requirements of Bank of Russia regulations issued in accordance with the Federal Law 'On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism' and application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.

OCEAN BANK JSC implemented a high-risk lending policy connected with the placement of funds in low-quality assets. Besides, the bank failed to meet the requirements of Bank of Russia regulations on countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism, including customer identification procedure, and also the credible notification of the authorised body about operations subject to obligatory control. Also, OCEAN BANK JSC was involved in dubious operations, including dubious transit operations. The management and owners of the credit institution did not take effective measures to normalise its activities.

By its Order No. OD-1215, dated 13 April 2016, the Bank of Russia has appointed a provisional administration to OCEAN BANK JSC 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.

OCEAN BANK JSC is a member of the deposit insurance system. The revocation of the banking licence is an insured event as stipulated by Federal Law No. 177-FZ 'On the Insurance of Household Deposits with Russian Banks' in respect of the bank's retail deposit obligations, as defined by law. The said Federal Law provides for the payment of indemnities to the bank's depositors, including individual entrepreneurs, in the amount of 100% of the balance of funds but no more than RUB 1.4 million per one depositor.

According to the financial statements, as of 1 April 2016, OCEAN BANK JSC ranked 457th by assets in the Russian banking system.