The National Bank of Ukraine  backs the Prosecutor's Office decision  to open   criminal proceedings to investigate a  criminal offence  prosecuted under Part 5 Article 191 of the Criminal Code of Ukraine (the large scale embezzlement), which was allegedly committed by VAB PJSC’s bank managers and owner Mr Oleh Bakhmatiuk.

According to information released by the Public Prosecutor's Office, the Main Department of the National Police in the city of Kyiv has been instructed to carry out a pre-trial  investigation into this case.  

Criminal proceedings were opened in response to a claim filed by the NBU against this Bank’s owner and mangers. The NBU supports such actions by the Public Prosecutor's Office and expresses its hope that such criminal proceedings will soon be opened against other managers and owners of insovent banks that have broken the law.

This case may mark   a tougher stance taken  by the law enforcement authorities in an effort  to bring  owners and top managers of insolvent banks to justice. In 2015, upon the NBU’s initiative, the Law of Ukraine On amendments to some legislative acts of Ukraine concerning liability of related parties to the bank was passed,  which strengthened the responsibility of the bank owners and managers for driving their financial institutions  into insolvency.  In particular,  if the bank owners and managers’  actions have inflicted heavy financial losses to the state or the creditor, these offences are  punishable by restraint of liberty for the period from one to five years.

For reference

FINANCIAL INITIATIVE PJSCCB and VAB BANK PJSC are indirectly owned by Mr Bakhmatiuk through Invest-Service LLC and Quickcom Limited.

On 20 November 2014, the NBU declared VAB PJSC insolvent. On 19 March 2015 , the regulator adopted a decision on withdrawal of the banking license and liquidation of this bank.