Concord Bank owner fails to reverse closure as Supreme Court cites "anti-Kolomoisky" law

The Supreme Court has overturned the rulings of lower courts that previously declared the liquidation of Concord Bank in 2023 unlawful and terminated the related legal proceedings, according to the official court register.

The decision by the National Bank of Ukraine (NBU) to revoke the bank’s license and liquidate it was challenged by the bank’s owner, Olena Sosedka.

Both the Dnipropetrovsk District Administrative Court and the Third Administrative Court of Appeal ruled in favor of the plaintiff, dismissing the NBU’s justification for the liquidation — namely, repeated violations and alleged involvement in money laundering.

The lower courts deemed the applied sanction disproportionate to the alleged violations and highlighted procedural breaches by the NBU during an unscheduled on-site inspection of Concord Bank.

Unlike the lower courts, the Supreme Court did not assess the substance of the plaintiff’s claims. Instead, it dismissed the case on procedural grounds, ruling that the legal remedy chosen by the plaintiff was ineffective and not envisaged by current legislation.

The Supreme Court cited Law of Ukraine No. 590-IX, which stipulates that a court's recognition of the NBU's decision to revoke a banking license and liquidate a bank as unlawful does not restore the institution’s previous legal or operational status.

According to the ruling, the only legally effective way to protect the rights of persons affected by violations during the liquidation process is to seek monetary compensation.

As a result, the Court concluded that claims aimed at annulling the NBU's decision with the goal of reinstating the bank are not subject to judicial review.

The Supreme Court’s decision is final, has entered into force, and cannot be appealed.

• For reference, the National Bank revoked Concord Bank’s license and initiated its liquidation in August 2023, citing systemic violations of anti-money laundering legislation.