The National Bank of Ukraine has decided to revoke the banking license and initiate winding up proceedings in respect of CB Union PJSC for systematic breaches of financial monitoring laws (pursuant to Articles 73 and 77 of the Law of Ukraine On Banks and Banking). NBU Board Resolution No.299/BТ of 28 April 2016 has been issued to this effect.
The National Bank of issued the first resolution (NBU Board Resolution No.162/BТ) ordering the revocation of the banking license and liquidation of this bank on 15 March 2016. However, on 28 March 2016, the Kyiv County Administrative Court recognized as legitimate and overturned NBU Board Resolution No.162/BТ ordering the revocation of the banking license and liquidation of CB Union PJSC.
On 26 April 2016, the Kyiv Administrative Court of Appeal rejected a claim filed by the NBU and the Deposit Guarantee Fund (DGF). Thus, the Kyiv County Administrative Court’s ruling has entered into force. The NBU has complied with the Court's ruling.
However, in view of information available to the NBU regarding systematic breaches of financial monitoring laws by CB Union PJSC, the NBU Board has issued a new resolution on withdrawal of the banking license and liquidation of this bank.
The NBU wants to bring a reminder that CB Union PJSC has been held to account on repeated occasions for violation of financial monitoring laws in the past two years. The Bank took steps to obstruct and resist the inspection in March 2016. Following the decision ordering the winding-up of CB Union PJSC, representatives of the DGF were rejected access to the bank's premises.
The National Bank of Ukraine has approached the High Qualification Commission of Judges of Ukraine with a claim seeking expose Mr Ye.V. Ablov, Mr I.M. Pohribnichenko and Mr V.P. Shulezko, juges of the Kyiv County Administrative Court, to disciplinary action. Similar claims will be filed against judges of the Kyiv Administrative Court of Appeal. Additionally, the NBU intends to file a cassation appeal to challenge the court's ruling.