Credexbank

History and operations

Originally established on September 27, 2001, as Nordic Investment Bank Corporation, the bank changed its name to Northern Investment Bank on April 5, 2006, and then to the current name of JSC CredexBank on February 12, 2007. The original banking license was issued on September 27, 2001. The banking licence no. 19 was issued on November 9, 2011. It is a member of Association of the Belarusian Banks, which was founded in 1990. It was established in 2001 by British investors, Ximex Executive. Credexbank is the 22nd largest of Belarus’s 31 commercial banks by assets. It is owned by the Fribourg, Switzerland-based company Vicpart Holding SA, owns 98,82% of the bank’s shares. Another shareholder is Sentecinvest (1,18%). Credexbank’s beneficial owner is Michel Haessing (Switzerland).

With 169 employees and a total capitalization of approximately US$19 million, the bank currently ranks as the 22nd largest in total assets among 31 commercial banks in Belarus. Credex has six domestic branches and one representative office in the Czech Republic. While the majority of its correspondent banking relationships are with other Belarusian banks, Credex also maintains correspondent relationships with Russian, Latvian, German, and Austrian banks.

The statutory capital of Credexbank is BR 150.4 billion (US$18.5 million according to the current rate). As of 1 April 2012, the bank’s assets equaled BR 334.9 billion ($41.2 million).

Balance Sheet

BALANCE SHEET (in Belarusian rubles)

As of 4 January 2012:

Total Assets = 334,880,100,000

Total Liabilities = 123,783,300,000

Total Liabilities and Capital = 334,880,100,000

The balance sheet information is published according to the data given by the banks functioning in the Republic of Belarus to the National Bank of Belarus.

Foreign investments between Belarus and off-shores, tons.

Credexbank says that Belarusian residents regularly carry out export-import and investment transactions with non-residents of the international offshore areas, however their volume is insignificant (See Tables below).

Investment from off-shore zones to Belarus

Country

Cyprus

British Virgin Islands

Liechtenstein

Panama

Dominica

Gibraltar

Belize

Seychelles

Luxembourg

Isle of Man

Saint Kitts and Nevis

Anguilla

Investment to off-shore zones from Belarus

Belarusian residents cooperate with non-residents from the following offshore jurisdictions: Cyprus, British Virgin Islands, Liechtenstein, Panama, Dominica, Gibraltar, Belize, Seychelles, Luxembourg, Isle of Man, St. Kitts and Nevis, and Anguilla. However, it is difficult to assess to what extent these offshore operations relate to money laundering.

Officers

As of June 15, 2012, the current chairperson of the bank is Alexander A. Aksenevich.

Ekaterina Lazareva is associated with this bank as a "leading specialist at JSC Credexbank."

Locations

The address of the bank headquarters is 114 Nekrasova Street, Minsk, 220068.

United States allegation

On May 22, 2012, the United States Department of the Treasury announced the identification of Belarus-based JSC CredexBank (Credex) as a financial institution of primary money laundering concern under the USA PATRIOT Act (Section 311). The U.S. Government took this action because it has reason to believe that Credex has engaged in high volumes of transactions that are indicative of money laundering on behalf of shell corporations, and has a history of ownership by shell corporations whose own lack of transparency contributes to considerable uncertainty surrounding Credex’s true beneficial ownership.

Credexbank response

On May 25, 2012, Credexbank JSC issued a press release "that assertions of the United States Department of the Treasury regarding transactions carried out by the Bank and the possibility itself for a small Belarusian bank to act as a “key center for money laundering” are groundless." Credexbank reports that "An audit for the observance of measures by the Bank aimed at combating money laundering and financing of terrorism has been also carried out by the respective state authorities" such as the State Control Committee of the Republic of Belarus and the National Bank of the Republic of Belarus. Credexbank JSC announced that it is "consulting with their lawyers in Switzerland in order to protect business reputation" and "to prove the noninvolvement of Credexbank JSC in illegal business and eliminate any doubts about reliability of the bank".

Belarusian Foreign Ministry response

Foreign Ministry spokesman Andrei Savinykh of the Belarusian Foreign Ministry has dismissed the allegations of the United States Department of Finance, accusing Credexbank, a Belarusian bank, of money laundering.

National Bank of Belarus Investigation

On June 23, 2012, the first deputy chairman of the Board of the National Bank of Belrussia Mikalay Luzgin said, presently the National Bank is verifying the data obtained from the US Department of the Treasury. Mikalay Luzgin is in charge of the bank surveillance.

Later, in response to the money laundering allegations, the National Bank of Belarus conducted an unscheduled inspection of Credexbank and did not find evidence of impropriety.

The National Bank of Belarus announced that,