On 26 May 2016, the Kyiv Administrative Court of Appeal confirmed the legitimacy of NBU Board Resolution on liquidation of Bank Veles PJSC. The Court ruling came into effect immediately after being announced.
In January 2016, Mr Bondariev, the shareholder of Bank Veles PJSC, took his claim to the Kyiv District Administrative Court, seeking to overturn as illegitimate the NBU Board Resolution on the Revocation of the Banking License and Liquidation of Bank Veles PJSC and Decision of the Executive Directorate of the Deposit Guarantee Fund (DGF) On the Initiation of the Winding-up Proceedings in respect of this bank.
The Court partially upheld the claim by the shareholder, overturning the decisions by the NBU and the DGF ordering the liquidation of Bank Veles PJSC.
The NBU filed an appeal to the Kyiv Administrative Court of Appeal, seeking to challenge the ruling by the court of the first instance. Having considered the case, the Kyiv Administrative Court of Appeal confirmed the legitimacy of NBU Board Resolution on liquidation of Bank Veles PJSC.
To note, on 10 December 2015, the NBU issued a decision to revoke the banking license and wind up Bank Veles PJSC for the bank’s involvement in risky activities and systematic breaches of financial monitoring laws. Nearly 90% of all the operations performed by the bank fit the description of risky operations. For the part of 2015, the value of these operations exceeded USD 100 million. Moreover, a significant number of the operations were conducted using forged documents.