Bank of Russia Revoked Licence from SNCI MGB LLC
OREANDA-NEWS. By its Order No. OD-2235, dated 21 August 2015, the Bank of Russia revoked the banking licence from the Makhachkala-based credit institution Settlement Non-bank Credit Institution MGB, limited liability company, or SNCI MGB LLC (Registration No. 2866-K) from 21 August 2015.
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 Article 7 (except for Clause 3 of Article 7) of the Federal Law 'On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism' and Bank or Russia regulations based on this Federal Law, and application of supervisory measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.
The credit institution did not comply with the requirements of the legislation on anti-money laundering and the financing of terrorism in terms of customer identification. Besides, the rules of internal controls of the credit institution aimed at countering money laundering and the financing of terrorism did not comply with the requirements of Bank of Russia regulations. The management and owners of SNCI MGB LLC did not take measures to normalise its activities.
By its Order No. OD-2236, dated 21 August 2015, the Bank of Russia has appointed a provisional administration to SNCI MGB LLC for the period until the appointment of a receiver pursuant to the Federal Law 'On 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.
According to the financial statements, as of 1 August 2015, SNCI MGB LLC ranked 750th by assets in the Russian banking system.