Selected projects

Major Russian and foreign banks

The KPMG team conducted financial investigations for large Russian and foreign banks, the results of which revealed fraudulent actions of former shareholders and top managers to withdraw liquid assets from banks and obtain cash. We also completed a number of projects to determine the quality of loan portfolios and develop a strategy for dealing with troubled assets. 

Selected projects

  • Financial investigation to establish damage caused by the actions of former shareholders of a bank
  • Analysis of a bank's financial activities to identify illegal appropriation of assets and transactions made not on an arm’s length basis
  • Financial investigation against a borrower (a CIS construction company) regarding the misuse of borrowed funds, their cashing, as well as falsification of the scope of construction work
  • Analysis of a bank's assets and liabilities to determine the reasons for a significant deterioration in its financial position
  • Assessment of the quality of a loan portfolio to establish the correctness of risk provisions, to identify hidden or potential bad debt
  • Development of a bad asset management strategy to increase the repayment ratio and reduce the capital burden

Scope of work under the projects delivered

  • Analysis of the quality of loan and equivalent debt
  • Identification of risks under provided bank guarantees
  • Analysis of compliance of procedures for issuance of loans/bank guarantees with internal bank documents
  • Identification of hidden relationships between borrowers, their counterparties and bank controlling persons
  • Identification of areas for spending (targeted use) of funds received by a bank's borrowers
  • Identification of cash generation sources (and definition of the "profit center” of a borrower or interrelated groups of companies) to repay debt
  • Analysis and description of transaction chains with signs of cash withdrawal (including cashing), breach of contract
  • Identification of potentially troubled borrowers, consideration of options to restore their solvency
  • Assessment of the correctness of provisions for losses (in line with the Bank of Russia’s regulations and instructions)
  • Identification of transactions that have caused losses to a bank
  • Identification of persons whose actions have caused damage to a bank
  • Analysis of overdue loans, identification of reasons for borrower defaults

Bank receivership

The KPMG team implemented a number of projects for bank receivers to identify the circumstances and signs of deliberate bankruptcy of credit institutions, as well as the grounds for bringing persons controlling credit institutions to criminal, subsidiary and other civil liability.

Selected projects

  • Financial investigation to identify scheme transactions to withdraw assets from credit institutions in the interests of their beneficiaries and top managers
  • Investigation to establish hidden relationships between persons controlling credit institutions and borrowers, counterparties
  • Financial analysis to identify suspicious transactions and transactions that have caused losses to a bank, as well as identification of persons involved in making transactions to withdraw assets from the bank
  • Documentary and legal analysis of the grounds for bringing controlling persons to criminal, subsidiary and other civil liability

Scope of work under the projects delivered

  • Analysis of asset quality, identification of cases of artificial increase of liabilities
  • Assessment of the financial situation of, and debt servicing by, borrowers
  • Identification of borrowers and counterparties with signs of conducting no real activities (dummy borrowers)
  • Analysis of portfolios of homogeneous loans
  • Identification of a fictitious balance at the bank's cash desk
  • Identification of transactions that have caused significant deterioration in the financial situation of a bank; calculation of the amount of damage caused to the bank
  • Identification of persons involved in scheme transactions or transactions that have no clear economic substance
  • Collection of facts and evidence for the court to bring perpetrators to justice