The National Bank of Ukraine has approached the High Qualification Commission of Judges of Ukraine with a claim seeking to expose Mr Ye.V. Ablov, Mr I.M. Pohribnichenko and Mr V.P. Shulezko, judges of the Kyiv County Administrative Court, to disciplinary action.
On 21 March 2016, the Kyiv County Administrative Court has opened an administrative case (No.826/4275/16) in response to the claim filed by Mr S.V. Diadechko against the NBU and the Deposit Guarantee Fund, in which the claimant demanded that the court should recognize the illegality of the NBU Board Resolution on withdrawal of the banking license and liquidation of CB Union PJSC. Pursuant to the Court's ruling, a court hearing was scheduled on 24 March 2016. Upon the request from the NBU, the court hearing was adjourned until 28 March 2016. During the Court hearing held on 28 March 2016, the Kyiv County Administrative Court heard arguments from all parties involved in the case and ruled to satisfy the claim in full.
The regulator believes that the Court’s ruling lacks an adequate reasoning justifying the decision. Additionally, the Kyiv County Administrative Court disregarded the judgment of the Higher Administrative Court of Ukraine to this effect.
For instance, the Kyiv County Administrative Court argued that at the moment of entry into force of the NBU Board Resolution ordering the winding-up of CB Union PJSC, neither the Bank nor its senior executives were brought to administrative or criminal liability for alleged violation of anti-money laundering laws. However, the absence of the Court ruling in relation to the criminal case does not mean that the Bank should be relieved from responsibility for violation of financial monitoring laws (the judgment of the Higher Administrative Court of Ukraine in this regard is in full consistency with the judgment of the Supreme Court of Ukraine).
On 26 April 2016, the Kyiv Administrative Court of Appeal rejected a claim filed by the NBU and the Deposit Guarantee Fund (DGF). Following the court's ruling, the NBU will examine the rationale behind the decision and file a cassation appeal to challenge the court's ruling. Additionally, the NBU intends to approach the High Qualification Commission of Judges of Ukraine claiming that a substantial procedural violation took place when the Kyiv County Administrative Court issued a ruling in this case.
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. 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.