OREANDA-NEWS. By its Order No. OD-3776, dated 3 November 2016, the Bank of Russia revoked the banking licence from the credit institution Commercial Bank Kamsky Horizont, limited liability company, or LLC CB Kamsky Horizont (Registration No. 2554, the Republic of Tatarstan, the town of Naberezhnye Chelny) from 3 November 2016.

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 the 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 the Bank of Russia regulations issued in compliance with the said federal law, because the capital adequacy ratio of this credit institution was below 2% and its equity capital dropped down below the minimum authorised capital established by the Bank of Russia as of the date of the state registration of the credit institution, considering repeated application within a year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.

As a result of meeting the supervisor’s requirements on creating loan loss provisions for actually unavailable assets, the credit institution fully lost its equity (capital). LLC CB Kamsky Horizont did not comply with the legislation and the Bank of Russia regulations on legalisation (laundering) of criminally obtained incomes and financing of terrorism with respect to misrepresentation to the authorised body. Besides, the bank was involved in dubious transit operations. The management and owners of LLC CB Kamsky Horizont 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’.

According to the financial statements, as of 1 October 2016, LLC CB Kamsky Horizont ranked 537th by assets in the banking system of the Russian Federation.