OREANDA-NEWS. By its Order No. OD-1436, dated 24 June 2015, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Commercial Bank MAST-Bank (Joint-stock Company) or CB MAST-Bank (Registration No. 3267) from 24 June 2015.

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, due to the identification of instances of material unreliability of financial statements, due to repeated violations within one year of the requirements stipulated by Article 7.2 of the Federal Law 'On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism', due to the fact that the values of all capital adequacy ratios of the bank are below two percent, due to the bank's inability to meet monetary obligations to creditors, and also taking into account repeated applications within one year of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.

Because of the bank's highly risky lending policy and extremely poor quality of assets which did not generate sufficient cash flow, CB MAST-Bank did not execute its obligations to depositors. At the same time, the credit institution submitted to the Bank of Russia grossly unreliable financial statements which concealed grounds for initiating measures to prevent insolvency (bankruptcy) and to revoke the banking licence. Besides, after CB MAST-Bank complied with the supervisor's requirement to create loss provisions commensurate with risks assumed, the bank's capital was reduced to a critical level. In these circumstances, guided by Article 20 of the Federal Law 'On Banks and Banking Activities', the Bank of Russia performed its obligation and revoked the banking licence from the credit institution.

The bank's activities contain established facts of repeated violation of requirements of the legislation on anti-money laundering and combatting the financing of terrorism with regard to customer identification procedure on cashless settlements conduced at customers' instructions. Besides, the credit institution was involved in dubious large-value cash withdrawals abroad, and also dubious payable-through.

By its Order No. OD-1437, dated 24 June 2015, the Bank of Russia has appointed a provisional administration to CB MAST-Bank 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 are suspended.

CB MAST-Bank 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.

According to its financial statements, as of 1 June 2015, CB MAST-Bank ranked 189th by assets in the Russian banking system.