OREANDA-NEWS. Having considered the proposal of the Deposit Guarantee Fund concerning liquidation of the insolvent GREEN BANK PJSC, on January 23, 2015, the National Bank of Ukraine adopted a decision to revoke a banking license and wind down this bank.

In the course of supervision over activities of GREEN BANK PJSC (hereinafter - the bank) in terms of compliance with the law on Prevention and Counteraction to Legalization (Laundering) of the Proceeds from Crime or Terrorist Financing (hereinafter - the law on financial monitoring), the National Bank of Ukraine has repeatedly revealed evidence confirming violation of the law on financial monitoring. Corrective action has been taken against the Bank to this effect. However, the Bank failed to take sufficient measures to reduce risks of using the services rendered by the Bank for legalization of the proceeds from crime.

In particular, the comprehensive inspection carried out at the Bank has revealed that the Bank conducted large-scale transactions in cash, which is not inherent to banks belonging to Group 4 banks, and identified specific customers who carried out financial operations on withdrawal of large amounts of cash.

In view of the above, by virtue of Article 76 of the Law of Ukraine On Banks and Banking, the Board of the National Bank of Ukraine issued Resolution No. 595/BТ of 24.09.2014 declaring GREEN BANK PJSC insolvent.

In compliance with Article 34 of the Ukrainian Law On Household Deposit Guarantee Scheme, the Executive Directorate of the Household Deposit Guarantee Fund (the DGF), on the next business day after the bank was declared insolvent by the NBU, placed the bank under a provisional administration (for the period from 25.09.2014 until 25.12.2014), and appointed an authorized person to that effect. On December 25, 2014, the DGF Executive Directorate issued Resolution No. 162 prolonging the provisional administration at GREEN BANK PJSC till 24.01.2015.

In accordance with the amended Law of Ukraine On Banks and Banking, which takes effect on February 7, 2015, the National Bank of Ukraine is entitled, in its absolute discretion, to revoke a banking license in case of a repeated breach of the law on Prevention and Counteraction to Legalization (Laundering) of the Proceeds from Crime or Terrorist Financing, thus posing a threat to the interests of depositors and other creditors of the bank.

As a side note, AKTABANK PJSC, PRIME-BANK PJSC and EXPOBANK JSCB that have repeatedly violated the law on financial monitoring are under liquidation. In 2014, the provisional administration was introduced in the above mentioned banks.

The National Bank of Ukraine will continue to take action against banks' engagement in risky operations for illicit purposes and breach of the law on financial monitoring.