Black list of the Central Bank of the Russian Federation

2020: 4.3% reduction in financiers' blacklist to 7182 people

The black list of financiers maintained by the Central Bank of Russia in 2020 decreased by 4.3% to 7182 people from 7504 in 2019. This data was disclosed by the regulator itself.

The black list of the Bank of Russia includes top managers, shareholders and members of the board of directors of credit and non-credit financial organizations with an unsatisfactory business reputation. Getting on the list deprives the right to join the board of directors or top management for a certain period, to acquire large packages of financial organizations.

The reduction in the list in 2020 occurred for several reasons. Among them is the expiration of the term of being in the database of persons entered there in 2016.

The black list of financiers maintained by the Bank of Russia in 2020 decreased by 4.3%

Also, one of the factors for reducing the number of persons in the database is the adoption by the commission of the Central Bank of the Russian Federation on complaints of positive decisions on the appeals of people whose business reputation was recognized as unsatisfactory.

The number of people on the "black list" has grown over the past five years amid the improvement of the financial system carried out by the Central Bank. Statistics for 2020 showed a decrease in the number for the first time since the beginning of the "clearing" of the banking sector.

Since 2018, Russia has a law that expands the list of requirements for the business reputation of owners and heads of financial organizations and toughens the punishment for non-compliance with these requirements. The stay of bank managers and owners on the list was increased from five to ten years.

On July 1, 2021, the Bank of Russia will receive the right to identify the shadow owners of banks, insurance companies and non-state pension funds, as well as the right to initiate through the court the prompt seizure of accounts, securities and real estate of controlling persons if the capital of the organization has become negative. This will make it easier to bring owners to subsidiary responsibility.^[1]

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