OREANDA-NEWS. By its Order No. OD-1394, dated 19 June 2015, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Commercial Bank 'Investment union' Ltd. (Registration No. 637) from 19 June 2015.

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, and due to repeated violations within one year of the requirements of Bank of Russia regulations stipulated by 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)'.

Despite the unsatisfactory quality of assets, Commercial Bank 'Investment union' Ltd. failed to properly assess its credit portfolio and risks assumed. Besides, the bank did not comply with the requirements of Bank of Russia regulations on anti-money laundering and combatting the financing of terrorism in respect of timely submitting to the authorised body reliable data on operations subject to obligatory control. The credit institution was involved in dubious operations on large-value cash withdrawals abroad. The management and owners of the bank did not take measures required to normalise its activities.

By its Order No. OD-1395, dated 19 June 2015, the Bank of Russia has appointed a provisional administration to Commercial Bank 'Investment union' Ltd. 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.

Commercial Bank 'Investment union' Ltd. is a member of the deposit insurance system. The revocation of the banking licence is an insured event as stipulated by Federal Law No. 177-FZ 'On the Insurance of Household Deposits with Russian Banks' in respect of the bank's retail deposit obligations, as defined by law.

As of 1 June 2015, Commercial Bank 'Investment union' Ltd. ranked 298th by assets in the Russian banking system.