The decision on state registration of any financial organization is made by the Central Bank of Russia. As soon as information about the bank falls into a single register, it is obliged to inform about all changes that are occurring. A banking license is also issued by the Central Bank of the Russian Federation.
Definition
First, let's clarify what is included in the concept of “license”. A license is a special permit issued by authorized bodies in the form of an official document with a certain content, form and duration.
If we take the above definition as basic and supplement it with excerpts from Chapter 2 of the Banking Law, we get a definition of a license for banking operations.
A banking license is a special permission from a bank of the Russian Federation to carry out banking activities in the form of an official document that gives a financial institution the right to carry out banking operations specified in it without a time limit.
Types of Licenses
For newly minted banking organizations, such types of licenses are available as:
- license for banking operations with funds in rubles (without the right to attract funds from individuals);
- to perform operations with funds in ruble equivalent and foreign currency (without the ability to attract funds from individuals);
- to attract cash deposits and placement of precious metals (this license is valid separately from the license for the execution of operations with money);
- to attract monetary funds of individuals in deposits (in national currency);
- to attract monetary funds of individuals in deposits in national and foreign currency;
- to execute operations with funds in ruble equivalent or with funds in foreign and national currency for settlement non-bank financial organizations;
- to execute operations with funds in ruble equivalent or with funds in national and foreign currencies for settlement non-banking financial organizations that conduct deposit and credit operations.
A banking license is issued for:
- involvement in deposits and placement of precious metals;
- involvement in deposits of individuals in national currency;
- involvement in deposits of individuals in national and foreign currencies.
A separate type of license is considered general.
General license
Such a banking license is issued to those financial institutions that have received permission to perform all operations and that comply with the requirements of the Federal Law on the amount of equity.
Moreover, a license to place precious metals is not required to obtain a general license. An organization that has such a license and funds in the amount of 180 million rubles may create, with the permission of the Central Bank of the Russian Federation, branches and representative offices in foreign states. Also, such banks may, in accordance with the requirements of the Central Bank of the Russian Federation, create subsidiaries.
A general banking license is issued for a period of unlimited years.
Terms of issue
A document can be issued only after state registration and in the manner established by law and those regulations adopted by the Central Bank. The banking license contains an indication of what currency the bank will work with, whether money will be raised for deposits, and also the possibility of placing precious metals.
In order for the issue of issuing a license to be considered, a commission of 1% of the bank’s charter capital is charged . This money goes to the treasury of the federal budget.
The issued license must be included in the list of issued licenses. The Bank of the Russian Federation should publish such a list in the Bulletin of the Central Bank of the Russian Federation at least once a year. Moreover, all changes and additions that appear should be made to the register no later than a month from the moment of their adoption.
The license should contain information about those banking operations for which the given financial institution is entitled, as well as information about the currency with which the bank has the right to work. A banking license is issued for an indefinite number of years. In other words, it is perpetual.
Work without a license
Based on the fact that licenses for the implementation of bank guarantees are issued by the Central Bank of Russia, the conduct of activities without this document will entail fines and penalties in the amount of all profits that the organization received during its work. In addition, a legal entity working without a license will be required to pay a fine to the federal budget in the amount of two times the amount received during the work.
Penalties and fines are made through the court at the suit of the prosecutor or the Central Bank.
The Central Bank has the right to file a lawsuit to liquidate a legal entity operating without a license and carrying out financial transactions. Such organizations bear administrative, civil, legal, as well as criminal liability. At the same time, the period for which a license is issued for banking operations is reduced until the license is revoked.
Obtaining a license
To obtain a license, a financial institution must collect and submit the following documents:
- Application for state registration. This application should indicate the full details of the financial organization, as well as the executive body, with which you can communicate with the bank.
- Memorandum of association. This document is provided if required by federal law. You must provide either the original or a certified copy.
- Articles of association. Original or certified copy is provided.
- Business plan. The concept of work is developed and approved at a meeting of the founders. The document contains information on candidacies for the positions of leader and chief accountant, as well as on the approval of the charter. The preparation of the business plan is focused on the standards of the Central Bank of the Russian Federation.
- Confirmation document on payment of state duty, as well as license fee.
- Documents on state registration of founders. This includes: an audit report on the veracity of the financial statements submitted, confirmation by the tax inspectorate on the fulfillment of obligations to the federal and local budgets for 3 years.
- Supporting documents on the origin of the authorized funds.
- Questionnaires of candidates for the position of head, chief accountant, deputies and similar posts in the branches of the organization. These profiles should contain all the necessary information: full details, educational status (legal or economic), management experience in a similar field, criminal record. Application forms must be written with one's own hand.
Upon receipt of all documents, the Bank of the Russian Federation issues a written receipt.
Decision making by the Bank of the Russian Federation
The decision on state registration and issuance of a license is made within six months after the date of submission of all necessary documents.
After the bank decides on the state registration of a financial organization, it sends all the information about it to the authorized body, which will add information to a single list of legal entities.
Based on the decision and the documents submitted, the authorized body within five days brings the organization into a single state register of legal entities. The next day, this information should be provided by the Central Bank of the Russian Federation. And he, in turn, within 3 days reports this information to the founders of the organization.
Further, the founders are required to pay the declared authorized capital in 100% amount within a month. After that, the financial institution receives a document confirming the fact of state registration. Immediately after the state registration of the organization, a license is issued for banking operations. How long is issued? The Central Bank of the Russian Federation does not limit the terms of a license.
Obligations of the Bank of the Russian Federation upon recall
The Bank of the Russian Federation revokes a license if:
- the amount of authorized capital is reduced to 2%;
- the amount of own funds of a financial organization is lower than the minimum threshold for the authorized capital adopted by the Bank of the Russian Federation on the date of state registration of the organization;
- a financial institution ignores the requirement of the Central Bank to bring capital and equity into the norm;
- a financial institution cannot satisfy the requirements of creditors and fulfill its obligations on mandatory payments.
Reasons for recall
A banking license may be revoked if:
- There were reasons to believe that the submitted information, on the basis of which the document was issued, is invalid.
- The start of operations is delayed by more than one day.
- The facts of data inaccuracy are established.
- Monthly reporting is delayed by more than 15 days.
- A financial institution carries out activities not covered by the license.
- During the year, a financial institution violates the rules prescribed by federal laws and regulations of the Central Bank.
- Repeated failure by the guilty court to recover money established by the court was noted.
- There is a petition from the interim administration created on the basis of the Federal Law “On the insolvency of financial organizations”.
- The Central Bank has not repeatedly provided updated information that is necessary for entering the state registry.
Other grounds on which the license was revoked shall be deemed invalid. The decision of the Bank of the Russian Federation on withdrawal shall enter into force after the adoption of the act and may be appealed within a month from the date of its publication in the Bulletin.
What happens to the bank after the recall
A banking license is issued by the Central Bank of the Russian Federation, and it is also revoked. After the recall, the financial institution must be liquidated. Also, after a recall, a financial institution:
- the deadline for fulfillment of obligations comes;
- accrual of penalties for obligations ceases;
- work on property surveys is suspended (except for executive documents that are issued on the basis of collecting wage arrears, payment of remuneration, alimony and other payments) issued on the basis of court hearings and entered into force before the license is revoked;
- the activities of a financial organization in the form of conclusion of transactions or fulfillment of obligations (except for transactions regarding utility and maintenance payments, as well as benefit payments) are prohibited until the appointment of a liquidation commission or a bankruptcy trustee.
License return
A financial organization whose license has been revoked by the Central Bank of the Russian Federation can regain the status of an organization that conducts banking operations. For this, the revocation of the license is contested in court. And if the hearing makes a positive decision, the CBR will return the organization’s license. And it is worth noting that in judicial practice, such issues are resolved quite often, and in favor of banks.
In addition, the Central Bank may return the license on its own initiative. This happens after the financial institution corrects any violations that were found during inspections.
License term
A banking license is issued for a period unlimited in time. A financial institution may carry out all types of activities indicated in the license until it is withdrawn by the Central Bank of the Russian Federation or stops its work itself.
In the license form you can find only one date - the date of issue of its financial institution. Each year, the Central Bank conducts inspections that are aimed at the performance of activities specified in the license.