Ukrainian Prosecutor General's Office (PGO) is soliciting for the arrest of former board chairman of insolvent bank Finance and Credit (Kyiv), the PGO has said on its website.

"On November 14, 2016, the former board chairman of bank Finance and Credit and one of his deputies were informed that they are suspected of committing a crime… PGO filed a petition to court to arrest the suspects," the PGO said.

The crime is being investigated under Part 5 of Article 191 of the Criminal Code of Ukraine (misappropriation, embezzlement or conversion of property by abuse of official post committed in respect of an especially gross amount): shall be punishable by imprisonment for a term of up to twelve years, with forfeiture of property.

Volodymyr Khlyvniuk headed the bank's board since 2002.

The police and Security Service of Ukraine continue establishing all persons implicated in the unlawful financial deal signed by officials of bank Finance and Credit.

According to the report, with the help of nonresidents (one offshore company, the ultimate beneficiary of which is a Ukrainian citizen – former assistant to a lawmaker) the assets worth over UAH 1 billion were illegally removed from the bank.

According to the PGO, it was established that officials of bank Finance and Credit colluded with other persons and signed a surety agreement with nonresidents (one banks was located in Austria). Some $54 million was sent to the bank's correspondent accounts, which were used as a guarantee by the Ukrainian bank guarantor to cover risky activities of the offshore company registered in Cyprus.

The funds were lost after signing the fraudulent financial deals and reporting them. The bank and its depositors incurred significant losses as a result.