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.162/BТ of 15 March 2016 has been issued to this effect.
The Bank has been held to account on repeated occasions for violation of financial monitoring laws. This being said, the Bank took steps to obstruct and resist the inspection in March 2016.
Additionally, according to information released by the State Fiscal Service of Ukraine, the NBU’s summary report of preliminary inspection findings (with regard to the customers' financial operations revealed during the preliminary inspection conducted in 2015) have been entered into the the case-files of the criminal proceedings (investigation on charges of committing criminal offences punishable pursuant to the fifth part of Article 191, the second part of Article 205, and the third part of Article 209 of the Criminal Code of Ukraine).
The liquidation of this bank will not have an impact on financial market stability. As of 1 February 2016, there were less than 300 eligible individual depositors, whose deposits will be reimbursed by the Deposit Guarantee Fund.
For reference
Pursuant to Article 77 of the Law of Ukraine On Banks and Banking, the NBU has the right to revoke the banking license held by the bank on its initiative if there was detected a repeated breach by a bank of the laws covering the issues of anti-money laundering, combating terrorist financing, and the proliferation of weapons of mass destruction.