The National Bank of Ukraine (NBU) on August 30 decided to revoke KSG Bank`s license and liquidate it following the discovery of systematic violations of the anti-money-laundering legislation, particularly in the performance of risky activity related to financial monitoring, according to a post on the NBU website.
The bank is being liquidated without the provisional administration being introduced to the bank.
During the last inspection, the regulator established that KSG Bank had undertaken different schemes to convert non-cash funds into cash, according to the post. The transactions were handled with the involvement of legal entities, individual entrepreneurs and credit unions. The aim of the transactions was to transfer funds worth millions of dollars to the accounts of individuals – the bank`s clients – for further conversion into cash. According to the available information on the financial standing of these individuals, they could not conduct financial transactions involving such high amounts. Moreover, a number of persons have been identified whose passports are reported as lost or the holders of those passports are other persons based on the passport series and number.
The regulator has stated that information on the financial operations conducted by KSG Bank`s clients would be provided to law enforcement agencies in the near future.
The NBU has emphasized that the liquidation of KSG Bank will not affect the stability of the Ukrainian financial market, given the limited number of the bank`s clients and its asset volume. The total number of the bank`s depositors – natural persons – is some 1,200 people, 95% of whom will receive the insured repayment in full.
UNIAN memo. KSG Bank (formerly the European Bank for Sustainable Funding) has been operating on the Ukrainian market since 1993. Its major shareholders are Serhiy Kasianov and Ksenia Kasianova, holding a 33.46% stake each, and Oleksandr Shepelev, with a share of 16.39%.
