OREANDA-NEWS. By its Order No. OD-2889, dated 23 October 2015, the Bank of Russia revoked the banking licence from the Moscow-based credit institution PUBLIC JOINT-STOCK COMPANY COMMERCIAL BANK EUROCOMMERCE or PJSC CB EUROCOMMERCE (Registration No. 1777) from 23 October 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 Articles 6 and 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 the related Bank of Russia regulations, capital adequacy below 2%, decrease in equity capital below the minimal amount of the authoruised capital established as of the date of the state registration of the credit institution, and repeated application within a year of supervisory measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.

In the framework of the supervision over the activity of PJSC CB EUROCOMMERCE the Bank of Russia revealed that the bank considerably underestimated the credit risks and presented unreliable statements. The assessment of the credit risk revealed complete loss of capital by the bank.

Besides, PJSC CB EUROCOMMERCE did not comply with the legislation and Bank of Russia regulations on anti-money laundering and the financing of terrorism in terms of timely and detailed notification of the authorised body. The bank's rules of internal controls on anti-money laundering and the financing of terrorism did not comply with Bank of Russia regulations. The bank's activity was aimed at large-scale dubious transit operations.

The management and owners of the bank did not take measures to normalise its activities. In these circumstances, pursuant to Article 20 of the Federal Law 'On Banks and Banking Activities', the Bank of Russia revoked the banking licence from the credit institution.

By its Order No. OD-2890, dated 23 October 2015, the Bank of Russia has appointed a provisional administration to PJSC CB EUROCOMMERCE 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.

PJSC CB EUROCOMMERCE is a member of the deposit insurance system. The revocation of banking licence is an insured event envisaged by Federal Law No.177-FZ 'On Insurance of Household Deposits with Russian Banks' regarding the bank's obligations on deposits of households determined in accordance with the legislation. This Federal Law provides for the payment of insurance indemnity to the bank's depositors, including individual entrepreneurs, in the amount of 100% of their balances but not exceeding the total of 1.4 million rubles per depositor.

According to the financial statements, as of 1 October 2015, PJSC CB EUROCOMMERCE ranked 251st by assets in the Russian banking system.