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MAGNETAR-AUDIT VECTOR-SECURITY
» The complex representation of interests in credit institutions

The complex representation of interests in credit institutions



Against the background of recent upcoming trends in the banking sector, one of our priority activity areas is protection of interests of our clients that fell victims of unethical practice of credit institutions. The regulatory authorities conduct aggressive policy against credit institutions always toughening the requirements which results in the reduction of their number.

However, the quality of interaction between credit institutions and clients leaves much to be desired: many banks toughen their requirements during operations with clients, sometimes request unreasonably large documentation packages in order to confirm transactions, ask to explain the origins of funds, etc., and sometimes they ask you to close the account and stop any operations with the bank without any explanations, referring to the fact that regulatory authorities have tightened inspection and the bank doesn’t want to take the risk of losing its license.

In such cases our lawyers and specialists help principals to analyze the situation taking into account the specifics of banking business, to enter into negotiations with authorities of a bank and provide assistance in visiting of a credit institution and in forming of the optimal package of documents and drafting of literate and reasoned explanation.

As shown by practice, with the complex approach to an issue, a principal may often continue cooperation with the credit institution or promptly terminate the contract relations with minimum time and money losses. Today it may be quite challenging to close an operating bank account: the most frequent violation by banks is unreasonable delaying of documents review time limits.

Due to frequent recall of licenses from banks, one more priority area is representation of interests of principals after recall of license from a bank. In this case we represent interests of the individuals trying to return their deposits from banks and cooperate with the DIA (Deposit Insurance Agency).

This area is also attractive because some of the credit institutions don't indicate the real financial view in their financial reports. In this case the most helpful would be the appeal to law-enforcement agencies in order to prosecute the employees of a credit institution for fabrication of financial documents and records (for example, Art. 172.1 of the Criminal Code of the Russian Federation – Fabrication of financial accounting and reporting documents of a financial organization, or Art. 159 of the Criminal Code of the Russian Federation – swindling). Thereby it’s possible to raise a question of damage recovery from an individual (employee of the bank) that was found guilty.

The illustrative situation appeared around the bank «Krylovskiy» whose license was recalled and the inspection found out that the bank was raising depositors’s funds not indicating them in financial reports. This situation made the headlines in mass media. We suppose that in this case the responsible executives of the bank will more likely be convicted of a criminal offence and the investors' funds will be recovered from them.


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