The National Bank of Ukraine has sent a letter to the law enforcement agencies informing them about Bank MIKHAYLIVSKIY PJSC’ activities beaaring the obvious signs of organized criminal activities.
The NBU has pointed out that on 20 May 2016 the Business Day Software Suite B2 was not working at the bank. As a result, Bank MIKHAYLIVSKIY PJSC failed to timely submit statistical information to the NBU and execute clients’ payment transactions.
An NBU overseer gained access to information only when the business day was over on 20 May and detected a large number of transactions that were entered into the system when it was in the off-line operation mode. These included transactions involving the transfer of individuals' deposits from the financial company related to MIKHAYLIVSKIY PJSC to the Bank. This move has increased the financial burden for the Deposit Guarantee Fund by UAH 1.1 billion. It should be noted that all these deposits fell within the limits of the insured amount of UAH 200,000, the amount eligible for reimbursement by the Deposit Guarantee Fund.
On 19 May 2016, the Bank assigned debt claims arising from loans to households worth UAH 700 million. According to data provided by Bank MIKHAYLIVSKIY PJSC, the financial company used the funds held in its own account with the bank to settle payments under the contract. The claims arising from these loans were assigned at a much lower price, which, in accordance with Article 38 of the Law of Ukraine On Household Deposit Guarantee System, gives grounds to declare these transactions null and void. As a side note, earlier the Deposit Guarantee Fund notified Bank MIKHAYLIVSKIY PJSC’s depositors that the Bank remains the only eligible loan provider under earlier concluded agreements.
Additionally, on 19 May 2016, Bank MIKHAYLIVSKIY PJSC’s Loan Committee, in violation of the restrictions imposed by the NBU and without notifying the NBU overseer, adopted a series of decisions enabling the release of collateral for loans to bank-related parties for a total of over UAH 2 billion.
The Deposit Guarantee Fund is currently involved in efforts to declare these transactions null and void.