The head of the National Bank of Ukraine (NBU) Valeria Gontareva encourages law enforcement agencies to examine the attempts of banks «the Union» and «Veles» (both — Kiev) to resume the activities of these financial institutions despite the Central Bank’s decision on their liquidation, writes Interfax-Ukraine.
«Now the two banks, which we have brought from the market for fraud and money laundering, Bank «the Union» and Bank «Veles», recently reopened through the courts. I promise that NBU won’t allow for all actions (these banks – ed.) will be shown. … I think that these fraudulent activities need to be considered in the courts, our Prosecutor’s office and SBU have to understand,» — said Gontareva at a meeting of the NBU Council in Kyiv on Thursday, November 24.
The head of the Central Bank noted that the Bank «Veles» is one of the most «dirty» of the number derived by the Bank from the market.
«National Bank let the Bank to withdraw almost $ 0.5 billion. on fictitious contracts,» — said Gontareva.
Overall, according to the head of the NBU, a thorough judicial reform in the country, create a fair and unbiased judicial system are key to sustained growth of the Ukrainian economy.
As reported, the NBU resolution No. 299/BT dated April 28, 2016 re-decided to revoke the banking license and liquidate the Bank «Union» for the systematic violation of legislation in the sphere of financial monitoring.
First, the NBU took the decision to revoke the banking license and liquidation of the Bank on 15 March 2016, but on March 28, the District administrative court of Kyiv declared illegal and overturned the ruling, and on April 26 the Kyiv appeal administrative court left without satisfaction the appeal of the NBU and the Deposit guarantee Fund of individuals (fgvfl). Thus, the decision of the District administrative court of Kyiv came into force. NBU fulfilled the court’s decision.
However, given the availability of information about the numerous abuses in the Bank and act on violations of financial monitoring, the Board of the Central Bank adopted a new resolution on the revocation of the banking license and liquidation of the Bank.
In addition, the NBU turned to the High qualification Commission of judges of Ukraine with a request to bring three judges of the District administrative court of Kiev to disciplinary action. The actions of the NBU appeals to be taken in respect of judges of the Kyiv administrative court of appeal.
Concerning Bank «Veles», Kyiv court of appeal on may 26, 2016, affirmed the legality of the resolution of NBU on its liquidation.
It clarifies the Bank in January 2016, the shareholder of the Bank «Veles» Konstantin Bondarev submitted to the Kyiv district administrative court the claim about cancellation of the decision on liquidation of the Bank and the decision about commencement of the liquidation procedure. The court partially satisfied the claim of the shareholder, reversing the decision of the Central Bank and the Fund on the liquidation, then the Bank filed the appeal.
The decision on the revocation of license and liquidation of the Bank «Veles» the national Bank adopted on 10 December 2015 due to its risky activities, the systematic violations of legislation in the sphere of financial monitoring.
Earlier, the NBU has issued three natural persons are permitted to acquire shares of the Bank «Veles».
In February 2016, the regulator has recognized the owners of substantial participation in the Bank «Veles» Konstantin Bondarev (32,59%), Alexander Kandyba (32,91%) and Irina Goncharova(32,98%).
Note, as reported by the NBU, the net loss of operating Ukrainian banks, excluding the insolvent financial institutions, in January-September 2016 amounted to UAH 11.6 bn, which is 4.4 times lower than in the same period last year at 51.1 billion.
Gontareva encourages law enforcement agencies to examine the attempts of banks «the Union» and «Veles» to resume the activity 24.11.2016