The National Bank of Ukraine has forwarded a letter containing information about some operations performed by CB KHRESCHATYK PJSC to the law enforcement authorities. These documents may be used as evidence supporting allegations of the Bank’s involvement in organized criminal activities.
In particular, the NBU notified the law enforcement authorities that the problems faced by the bank deteriorated following the execution of current business operations by legal entities, including operations involving the transfer of funds to their accounts with other banks. The total amount of funds transferred to other banks was UAH 840 million.
On 4 April 2016, the NBU revealed evidence that the Bank performed transactions to split funds held in legal entities’ accounts followed by the subsequent transfer of UAH 23 million to individuals’ current accounts.
Additionally, some CB KHRESCHATYK PJSC’s customers paid off UAH 600 million to settle outstanding debts owed by private companies linked to the Bank’s shareholders on loans due for repayment. The debts were settled using the funds transferred from legal entities’ and individuals’ accounts, including funds provided as reimbursable financial assistance. As a result of these operations, liquid assets, including securities, mortgage, single property complexes, and land plots were released from collateral status by the Bank.
“Given that this information may be used as evidence supporting allegations of the Bank’s insolvent in organized criminal activities, we have lodged this information to the law enforcement authorities to enable the latter to promptly and thoroughly investigate and address the matter. The NBU requests the law enforcement authorities to notify it about the outcome of the investigation,” reads the letter.
The NBU believes that it is the related parties' actions that led to the deterioration in the bank's financial position and showed the unwillingness of some CB KHRESCHATYK PJSC’s shareholders to rescue the Bank. As a result, the Bank failed to meet its obligations to other creditors (legal entities/ or individuals, including those with deposits of over UAH 200,000).