OREANDA-NEWS. By its Order No. OD-1551, dated 3 July 2015, the Bank of Russia revoked a banking licence from the Krasnodar-based credit institution JOINT-STOCK COMMERCIAL BANK ENO (PUBLIC JOINT-STOCK COMPANY) or JSC ENO (PJSC) (Registration number 1988) from 3 July 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, repeated violations within one year of Bank of Russia requirements stipulated by Article 7 (excluding Clause 3 of Article 7) of the Federal Law 'On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism', as well as Bank of Russia regulations issued in accordance with the said Federal Law, and application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.

JSC ENO (PJSC) implemented a high-risk lending policy and failed to make provisions on possible losses on loans and other assets commensurate with the risks assumed. Besides, the credit institution failed to comply with legislation requirements as regards countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism in respect of identifying its clients. At the same time the rules of internal control of the credit organisation to counter the legalisation (laundering) of criminally obtained incomes and the financing of terrorism did not comply with Bank of Russia regulations. The management and owners of the credit institution did not take any effective measures to bring its activity back to normal.

By its Order No. OD-1552, dated 3 July 2015, the Bank of Russia has appointed a provisional administration to JSC ENO (PJSC) for the period until the appointments 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 body are suspended.

JSC ENO (PJSC) is a member of the deposit insurance system. The revocation of the banking licence is an insured event envisaged by Federal Law No. 177-FZ 'On Insurance of Household Deposits with Russian Banks' regarding the banks' obligations on deposits of households determined in accordance with legislation.

According to financial statements, as of 1 June 2015, JSC ENO (PJSC) ranked 759th by assets in the Russian banking system.