“Alfa-Bank” in the midst of a scandal. SBU investigation

							«Альфа-Банк» в эпицентре скандала. Расследование СБУ

“Alfa-Bank” was in the midst of an international financial scandal. The main investigation Department of the SBU carries out pre-judicial investigation of fraud, which also involved a number of European and domestic financial institutions, reports Finbalans.

Pre-trial investigation found that during the years 2010-2016 officials of the JSC “City commercial Bank” (formerly JSC “converse Bank”), OJSC “CB “PIVDENCOMBANK”, PJSC “Avtokrazbank”, JSC “Bank “Kyivska Rus” and “Alfa-Bank” and other banks made the acquisition of funds of banking institutions in especially large size on preliminary arrangement by group of persons by abuse of his official position during the transfer to Deposit funds, being on correspondent accounts of these banks in banking institutions “Meinl Bank AG” (Republic of Austria), “Bank Winter & CO AG” (Republic of Austria), “East-west United SA” (Grand Duchy of Luxembourg) and “Bank Frick & Co. AG” (Liechtenstein)”says the decision of Shevchenkovsky regional court of Kiev on September 6, concerning criminal proceedings No. 42016000000001125 from 26.04.2016.

Thus, the court satisfied the petition of the investigators of SBU and employees of the competent authorities of the Republic of Austria, which will perform a request for international legal assistance, temporary access to things and documents which are in the possession of banking institutions “Bank Winter & Co. AG” on the activities of” Alfa-Bank” and legal entities, credit commitments which, “Alfa-Bank” acted as guarantors, with the possibility of withdrawal at Bank Winter & Co. AG number of documents, including:

  • Bank statements reflecting cash flow for the period from 1 January 2010 to 27 March 2018 on correspondent accounts of Alfa-Bank, as well as all legal entities of credit obligations which Alfa-Bank acted as the guarantors;
  • the originals of all submitted and Alfa-Bank under which the Bank for 2010-2015 opened correspondent accounts in the Bank “Bank Winter & CO AG”;
  • help to write off funds from correspondent accounts of Alfa-Bank (indicating the dates, amounts and reasons of write-off)
  • the originals of the security agreements, the pledge (and Custody Agreement), escrow, etc., with all amendments and supplements thereto entered into during the years 2010-2018 between the Bank “Bank Winter & CO AG” and Alfa-Bank;
  • the originals loan agreements (Loan Agreement) with all amendments and supplements thereto entered into during the years 2010-2018 between the Bank “Bank Winter & CO AG” and foreign companies on the basis of which the Bank “Bank Winter & CO AG”, alpha Bank’s contracts security Deposit (and Custody Agreement) and responsible storage;
  • the originals of the legal, credit and Deposit Affairs of other legal entities, credit commitments which Alfa-Bank acted as the guarantor, including the card with samples of signatures and documents, on the basis of which was opened, closed and serviced the settlement account of the documents provided in the course of service accounts;
  • the originals of all submitted documents for reception of credits of legal entities, credit commitments of which Alfa-Bank acted as guarantor.

Under this criminal proceedings SBU investigators also investigated the operation of “Delta Bank”, Bank “Finance and credit”, “Terra Bank” and other banks. In court submissions provided data on implementation, including the schema (at least in part from relevant cases) are given below.

The Ukrainian Bank has placed its funds on a foreign Bank account. The latter secured the funds were given credit for the company or otherwise associated with the Ukrainian Bank. When the borrower company did not return a foreign Bank loan, he was written off from the correspondent account of a Ukrainian Bank made to the funds. In some cases, this write-off occurred even after the Bank admitted or that the Bank is insolvent. Market participants do not exclude that such a scheme could be used to withdraw funds from banks including for doubtful (from the point of view of the law) capitalization of banks in Ukraine, since the funds written off from the accounts in foreign banks, through a chain of foreign firms, at least partially could return to Ukraine in the form of a nominally foreign investments in the authorized capital, subordinated debt and the like.

Earlier, the national Bank reported that deposits of domestic banks at the accounts in Meinl Bank, Bank Frick & Co.AG and similar banks practiced until 2014.

“The new leadership of the National Bank in mid-2014 has identified this problem and developed a number of measures to strengthen the system of monitoring banking operations abroad. In particular, NBU:

  • improved internal regulations. In particular, ordered the Ukrainian banks that have account balances of foreign Bank without an investment-grade rating, on these assets to form 100% reserves. Thus, banks became unprofitable to withdraw funds abroad, then to lend to connected persons;
  • introduced weekly monitoring of balances of Ukrainian banks on foreign correspondent accounts;
  • established a timetable for the return of funds from these accounts,” — said in the national Bank.