OREANDA-NEWS. By its Order No. OD-2220, dated 14 July 2016, the Bank of Russia revoked a banking licence of the Ryazan-based credit institution Regional investment commercial bank Rinvestbank (limited liability company) or LLC RICB Rinvestbank (Registration No. 3262) from 14 July 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 Bank of Russia regulations, repeated violations over the last year of Bank of Russia requirements issued in accordance with the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’, capital adequacy ratios being below 2 percent, decrease in capital below the minimal value of the authorised capital established by the Bank of Russia as of the date of the state registration of the credit institution, and the repeated application within a year of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.

Given unsatisfactory quality of assets, LLC RICB Rinvestbank inadequately assessed the risks assumed. This being said, the bank fully lost its capital. The credit institution did not comply with Bank of Russia regulations as regards countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism in terms of submitting true and full information to the authorised body. The internal rules of the bank to counter the legalisation (laundering) of criminally obtained incomes and the financing of terrorism were at odds with Bank of Russia regulations. Besides, LLC RICB Rinvestbank was involved in dubious transit operations.

Both management and owners of the credit institution did not take any effective measures to bring its activities back to normal. Under these circumstances based on Article 20 of the Federal Law ‘On Banks and Banking Activities’ the Bank of Russia fulfilled its duty to revoke the banking licence of LLC RICB Rinvestbank.

By its Order the Bank of Russia has appointed a provisional administration to LLC RICB Rinvestbank for the period until the appointment of a receiver pursuant or a liquidator. In accordance with federal laws, the powers of the credit institution’s executive bodies are suspended.

According to reporting data, as of 1 July 2016, LLC RICB Rinvestbank ranked 304th in the Russian banking system in terms of assets.