Bank of Russia Revoked Banking Licence from JSCB BMB LLC
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 violation 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 of Russia regulations issued in compliance with the said federal law, inability to meet creditors' claims on monetary obligations, considering repeated application of measures envisaged by the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia)'.
Due to unsatisfactory asset quality, JSCB BMB LLC failed to generate sufficient cash flow and consistently failed to meet obligations to creditors on a timely basis. In addition, the credit institution did not observe the imposed bans of Bank of Russia to carry out certain operations. It was revealed that JSCB BMB LLC repeatedly failed to comply with legislation and Bank of Russia regulations on legalisation (laundering) of criminally obtained incomes and financing of terrorism with respect to misrepresentation to the authorised body and identification of its customers. Besides, the credit institution was involved in dubious transit operations in significant amounts carried out by its customers.
The management and owners of the credit institution did not take effective measures to normalise its activities. Under these circumstances, the Bank of Russia performed its duty on the revocation of the banking licence of the credit institution in accordance with Article 20 of the Federal Law 'On Banks and Banking Activities'.
By its Order No. OD-2984, dated 2 November 2015, the Bank of Russia has appointed a provisional administration to JSCB BMB 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.
JSCB BMB LLC 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 household deposits determined in accordance with the legislation. The said federal law stipulates the reimbursement of insurance premium to the bank's depositors, including individual entrepreneurs, in 100 per cent amount of the balance of funds, but not more than 1.4 million roubles in aggregate per depositor.
According to the financial statements, as of 1 October 2015, JSCB BMB LLC ranked 474th by assets in the banking system of the Russian Federation.