The National Bank of Ukraine (NBU) has asked the law enforcement agencies to investigate into activities of Royal Standard LLC, which attracted funds of depositors at high rates – 24-33% per annum in hryvnias and 18-22% in U.S. dollars, the NBU has reported. “The NBU does not grant licenses for attracting deposits or lending to entities that do not have the status of a bank, while the company has not received these licenses from other financial sector regulators – the national commission for financial service markets regulation and the National Commission for Securities and the Stock Market. Moreover, Royal Standard LLC does not have the status of a financial institution. That is, the company by law cannot attract deposits and issue loans,” the National Bank wrote on its Facebook’s page.
According to the NBU, Royal Standard offers investors to deposit cash directly at the office of the company or transfer it to its bank account, and the interest is promised to be paid to a bank card, the details of which are specified in the contract. As a guarantee of the deposit with the depositor, a pledge of rights to movable/immovable property is concluded, whereby the depositor receives a security deposit for property worth twice more than the value of the deposit. “People are explained that, in addition to accepting deposits, the company also provides loans to other persons securing them by property, namely, the rights to this property are transferred to depositors as a guarantee of the deposit. Market value and the existence of this property raise doubts,” the National Bank said.
FINANCIAL ACTIVITIES, INVESTIGATE, NATIONAL BANK, ROYAL STANDARD
