The National Bank of Ukraine (NBU) on April 16, 2015, fined ABH Ukraine Limited, the sole shareholder in Kyiv-based PJSC Alfa Bank, for acquiring a significant stake in PJSC Bank of Cyprus (PJSC Neos Bank since June 2014) without NBU permission concerning 0.1% of Neos Bank's charter capital.

"When estimating the size of the fine, the NBU accepted the fact that the violating entity had recognized its fault and confirmed its readiness to eliminate the violation," the regulator said.

The NBU said it is authorized to fine entities for such violations under the Ukrainian law on banks and banking if there are violations concerning the procedure of building up large stakes in a bank.

The size of the fine can be up to 10% of the face value of a stake being acquired.

On April 17, 2014, Alfa Group international consortium closed a deal with Bank of Cyprus Group to buy 99.77% of shares in Ukrainian-based Bank of Cyprus and a Ukrainian loan portfolio for a total of EUR 202.5 million.

At the time, the charter capital of the bank on sale was UAH 700.644 million, thus, the fine was fixed at UAH 699,000.

Later on, renamed Neos Bank's charter capital was reduced to UAH 126.116 million by January 1 and April 1, 2015.

"The National Bank will continue taking measures of influence, including maximum possible fines against violators of banking laws, which have been notified about the need to eliminate a violation but which continue ignoring the regulator's notification," Director of the NBU Department for Reconstruction and Licensing Leonid Antonenko said.

The NBU had previously reported it had ousted the owner of Alpari Bank Anastasia Abramova from the bank's management and demanded that the bank be sold, according to a post on its Facebook page.

"On April 14, 2015, due to the violation of banking laws, including the acquisition of a large stake in the bank without agreeing it with the regulator, the sanction was imposed on the holder of a large stake in OJSC Alpari Bank Anastasia Abramova. She is banned from participating in the management of the bank until she removes the infringements of banking laws," the report said.

As for the acquisition by ABH Ukraine Limited of Neos Bank, Alfa Bank officially announced on April 23 that it had acquired a right of economic benefits and management for that bank (over 99% of shares). The deal was struck on April 10, 2015. The bank did not disclose other details of the deal.

Alfa Bank said it had sent a required notification to the NBU and would formalize the deal, which will let ABH Ukraine Limited directly manage the shares of Neos Bank after securing the necessary permission from the regulators.

Alfa Bank (Ukraine) was founded in 1993. It is part of the Alfa Bank group, which unites banks in Ukraine, Belarus, Kazakhstan, Russia, and the Netherlands.

As of January 1, 2015, Alfa Bank (Ukraine) ranked 9th in terms of total assets worth UAH 36.694 billion, while Neos Bank was 123rd with UAH 511.970 million in total assets among 158 operating banks.