Based on the results of supervision over activities of PUBLIC JOINT-STOCK COMPANY "BANK OF PROFESSIONAL FINANCE" (hereinafter - PROFIN BANK PJSC or the Bank) in terms of compliance with the law on Prevention and Counteraction to Legalization (Laundering) of the Proceeds from Crime or Terrorist Financing (hereinafter – the legislation on financial monitoring), the National Bank of Ukraine has repeatedly revealed evidence confirming violation of the legislation on financial monitoring in its activities. In view of the above, the Bank has been held to account on numerous occasions for infringement of the legislation on financial monitoring over the past four years.
Based on the results of unscheduled inspection carried out by the regulator in December 2014, the following has been revealed: the Bank conducted large-scale transactions with cash in national currency; specific customers who consistently carried out operations on withdrawal of large amounts of cash were identified. Failure to take sufficient measures to prevent and counteract to legalization (laundering) of the proceeds from crime or terrorist financing paved the way for this Bank to engage in risky activities.
In addition, the top management of the Bank pursued a risky lending policy related to granting loans to newly established enterprises, which were used to repay loans to other borrowers and/ or credited to current accounts of other counterparties, with the subsequent crediting of funds to deposit accounts with the Bank.
The above-said practice led to an artificial improvement in the quality of credit portfolio and an overvalued balance sheet total of the Bank, etc.
The Bank had close relations with CITY COMMERCE BANK PJSC (which has already been declared insolvent). The Bank had received loans and acquired fixed assets from CITY COMMERCE BANK PJSC and its shareholder, and the funds from their disposal were used to settle obligations of COMMERCE BANK PJSC to the Bank. Furthermore, most Bank offices were located in the same premises that had earlier been leased by CITY COMMERCE BANK PJSC.
According to available public information posted on the official website of the Bank, R. Tumovs and T. Tumovs are controllers of the majority of companies being stakeholders of the majority shareholder of the Bank. At the same time, R. Tumovs was a stakeholder of the sole shareholder of the Bank.
In view of the above, in order to protect the interests of depositors and other creditors of the aforementioned banks, by virtue of Articles 15 and 55 of the Law of Ukraine On the National Bank of Ukraine, Articles 73, 74, and 76 of the Law of Ukraine On Banks and Banking, and NBU Board Resolution No. 346, dated August 17, 2012 (as amended), on January 19, 2015, the Board of the National Bank of Ukraine adopted a decision to declare the Bank insolvent.