On 30 August 2016, the National Bank of Ukraine adopted a decision on withdrawal of the banking license and liquidation of KSG Bank PJSC for systematic breaches of AML laws and regulations,  in particular its involvement in  risky activities  in the area of financial monitoring.

Thus,  the recent inspection conducted by the NBU established that  KSG Bank PJSC used schemes to convert cashless funds into cash.  These operations involved legal entities, sole proprietors and credit unions. The schemers performed a number of transactions with the aim of  transferring millions of hryvnias to the accounts held by individuals to be further converted into cash. According to the information on customers' financial position maintained by the bank, these customers were financially unable to perform such large–value transactions.  Additionally, the inspection revealed a number of customers that have reported their passports as lost and customer files with incorrect passport details (passports with these numbers or series have been issued to other persons).

According to the bank's records, the individuals involved in this scheme transfered the control of their accounts to one individual customer to whom the Bank has issued over 500 additional payment cards. This customer’s passport has been reported as lost to the law enforcement authorities.

Information on financial transactions performed by KSG Bank PJSC’s clients will be passed on to the law enforcement authorities.

The liquidation of this bank will not have an impact on financial market stability given the limited number of its customers and the relatively small size of its assets. The total number of the Bank's depositors (individuals) is around 1,200 persons. 95% of all the depositors will be reimbursed in full.

The  Bank's principal shareholders are Mr Serhii Kasyanov, Ms Ksenia Kasyanov (each holding a stake of 33.46%) and Mr Oleksandr Shepelev (16.39%).