National Bank of Moldova applies sanctions to former managers of two problem banks

Chisinau, 9 February /MOLDPRES/ - The executive committee of the National Bank of Moldova (BNM) has ruled to apply sanctions in form of fine with a maximum sum of 100,250 lei, which accounts for ten average salaries for financial activities, against former members of the board and executive body of Banca de Economii (Savings Bank) and UNIBANK, involved in what experts call “billion theft”.  

A press release issued by BNM on 8 February reads that “the sanctioning was instructed for the violation, in the period of exercising the office of manager, of the provisions of the law on financial institutions and the normative acts of the National Bank. The infringements refer, mainly, to the bank’s involvement in excessively risky operations, non-observance of limits and requirements concerning the concentration of risks in the assets (impact) of the bank, involvement in manipulation activities.” Some operations were not reflected in the book keeping, which led to the “distorting of the real situation reflected in the financial accounting FINREP and presentation of prudential reports with wrong data at the National Bank.”   

BNM said that the applying of sanctions “does not exclude also the applying of other punishments according to the law, including of criminal ones in case deeds representing offences are found out.” The Central Bank does not disclose the names of the sanctioned persons.  

The licences for carrying out financial activities of Banca de Economii, Banca Sociala (Social Bank) and Unibank, as a result of their insolvency and other infringements of the provisions of the legislation in force, were withdrawn on 16 October 2015. BNM also informed that it had initiated the process of enforced liquidation of these banks.      

Under the report of the British company KROLL, made public in last May, on 30 November 2014, when BNM imposed special administration at the three problem banks, the latter’s debts amounted to 18 billion lei in all. According to BNM’s subsequent estimations, the banks were embezzled by 13.3 billion lei.

The Moldovan and international media described the embezzlement of the three banks as the “century theft” or “billion theft.” Presently, the consortium made up of the firms Kroll and Steptoe & Johnson LLP carry out the second phase of investigation at Banca de Economii, Banca Sociala and Unibank. The companies were employed “to carry out a more detailed investigation, as well as to prepare and implement a strategy of recovery” of the assets missed at the three problem banks.    

(Reporter V. Bercu, editor A. Raileanu)