OREANDA-NEWS. By its Order No. OD-2316, dated 21 July, 2016, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Commercial Bank ABB, joint-stock company, or ABB JSC (Registration No. 2937) from 21 July 2016.

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 Bank of Russia regulations issued in accordance with the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’, and application of measures envisaged by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’, considering a real threat to the creditors’ and depositors’ interests.

Bank ABB JSC implemented high-risk lending policy and did not create loan loss provisions and provisions on other assets adequate to the risks assumed. The credit institution’s rules of internal controls on anti-money laundering and the financing of terrorism did not comply with Bank of Russia regulations. Moreover, the credit institution was involved in dubious transit operations. The management and owners of the credit institution did not take effective measures to normalise its activities.

By its Order No. OD-2317, dated 21 July, 2016, the Bank of Russia has appointed a provisional administration to Bank ABB JSC for the period until the appointment of a receiver pursuant to the Federal Law ‘On the 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.

According to the financial statements, as of 1 July, 2016, Bank ABB JSC ranked 621th by assets in the Russian banking system.