The National Bank of Ukraine has adopted a decision to wind up BLACK SEA BANK FOR DEVELOPMENT AND RECONSTRUCTION PUBLIC JOINT STOCK COMPANY and BANK MORSKOY PUBLIC JOINT STOCK COMPANY, reads NBU Board Resolutions No. 577 and No. 578 issued to this effect on September 2, 2015.
The aforementioned banks used to operate on the territory of the Autonomous Republic of Crimea. As a result of the occupation of the Crimean peninsula, in May 2014, the banking licenses and general licenses to carry out FX operations held by these banks were withdrawn and cancelled. The participation of these banks in the system of electronic payments run by the National Bank of Ukraine was terminated.
Following the adoption of Law of Ukraine No. 629-VIII of July 16, 2015, On Amendments to Certain Legal Acts of Ukraine on streamlining the household deposit guarantee scheme and the resolution of insolvent banks, the National Bank of Ukraine received a mandate to wind up the aforementioned banks. Before this, the regulator had no legal mandate to wind up the banks that had been stripped of the license as a result of the occupation of the territory of the Autonomous Republic of Crimea. In accordance with these amendments, the National Bank of Ukraine shall ensure the “winding up of banks incorporated in the Autonomous Republic of Crimea and the city of Sevastopol, whose banking license has been withdrawn by the National Bank of Ukraine”.
For reference
Pursuant to the Law of Ukraine On Banks and Banking of December 7, 2000 No. 2121-III, a bank may be liquidated by a decision of its owners, if the National Bank revokes the license on its initiative, or at the request of the Deposit Guarantee Fund.
The National Bank of Ukraine has the right to revoke the banking license if:
- it has established that the documents that were submitted by the bank to obtain a banking license contained inadequate information;
- the bank has not affected any banking transaction within a year from the day it was issued a license;
- there was detected a repeated breach by a bank of the anti-money laundering laws and regulations designed to prevent and counteract to the legalization (laundering) of proceeds from crime and terrorist financing and financing of proliferation of mass destruction weapons.