Russia's Central Bank on Thursday revoked commercial Neftyanoi Bank's operating license

Thursday, July 16, 2020

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Russia's Central Bank on Thursday revoked commercial Neftyanoi Bank's operating license, an official said. "The decision ... was taken following multiple breaches by [Neftyanoi] bank of the federal law on combating money-laundering and financing terrorism," a Central Bank press release said. Owners of Moscow-based Neftyanoi Bank notified clients and creditors of the bank's upcoming voluntary dissolution April 17. Shareholders made a decision on voluntary liquidation at a meeting on April 7, the bank said in a press release at the time. "In the current situation, the bank's owners consider that its further existence is not possible," the release said. But the Central Bank decided to reject Neftyanoi's petition for voluntary liquidation, citing a sharp deterioration in its banking activities since December 2005, when the bank became part of the deposit insurance system. Police raided Neftyanoi Bank on December 8, 2005, and seized documents that prosecutors said proved it was involved in money laundering. "Investigators said the documents seized from Neftyanoi Bank were evidence that it had used fake companies and their accounts to conduct illegal bank transactions and launder money," the Prosecutor General's Office said in a news release. The Central Bank has introduced temporary administration to supervise the bank's activities until a liquidator is appointed. "The authority of [Neftyanoi] bank's executive bodies has been temporarily suspended according to federal laws," the Central Bank said. Because Neftyanoi Bank is part of the deposit insurance system, the deposit insurance agency will take over payments of insurance compensation of up to 100,000 rubles (about $3,700) to the bank's clients. Estimates suggest the bank's obligations to clients are less than 1.3 million rubles ($47,866). Neftyanoi Bank was founded by a group of fuel and energy companies in 1991. Its current shareholders are construction and developer companies. As of April 2005, the bank's equity funds aggregated $58 million and its assets totaled $224 million. The bank has authorized capital of $54 million and financial investments valued at $96 million.

Bookmark Russia's Central Bank on Thursday revoked commercial Neftyanoi Bank's operating license