On August 1, 2023, the NBU decided to liquidate Concord Bank, accusing it of "miscoding" — incorrect coding of transactions related to the legalized gambling business. The National Bank explained that such violations contradict the requirements of financial monitoring.
However, representatives of "Concord" denied these accusations, stressing that:
- The bank fulfilled the requirements of Mastercard and Visa payment systems.
- In the last two years, the institution has not received any fines.
- Restrictions on P2P transactions through the API were implemented even before the NBU decision was adopted.
The Dnipropetrovsk District Administrative Court recognized the NBU's decision as illegal and annulled it. The appellate court confirmed this verdict. In addition, the Sosyedka sisters presented the results of independent examinations, which prove the absence of violations in the bank's activities.
"The decision to liquidate the bank became a precedent in how Ukrainian regulators treat successful and profitable banks," said Olena Sosedka in her address.
However, Ukrainian legislation provides that once the liquidation process is started, it is almost impossible to stop it. Even despite court decisions, the bank will not be able to resume its activities.
Bank "Concord" became the first profitable financial institution to be liquidated under the terms of the new regulation. Previously, only institutions facing bankruptcy or significant financial problems were subject to liquidation.
As of the time of liquidation, Concord had enough highly liquid assets to ensure all payments to clients in 2-3 weeks. However, due to legal regulations, the liquidation process can take up to three years.
As of February 24, 2022, eight banks, including Concord, have been liquidated. This shows that even under martial law, the NBU actively withdraws from the market institutions that, in its opinion, violate regulatory norms.
