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CBR revokes license of Priroda bank

According to the Central Bank, Priroda did not comply with federal laws regulating banking activities and regulations

MOSCOW, January 31, 8:57 /ITAR-TASS/. Russia's Central Bank has revoked the Priroda commercial bank's license for banking operations from January 31, the regulator reports.

The decision was taken because Priroda did not comply with federal laws regulating banking activities and regulations of Bank of Russia, the CB said in a statement.

Priroda did not form reserves adequate to risks for loan losses and violated the regulations for accounting and submitting reports to Bank of Russia. The commercial bank was involved in suspicious operations. In 2013, the volume of funds transferred to nonresidents with false documents exceeded 20 billion roubles. Its internal control regulations to prevent laundry of criminal incomes and terrorism financing did not conform to the requirements of Bank of Russia. The top managers and owners did not take measures to normalize its activities, the CB said.

Under the CB order, a provisional administration is appointed until a trustee or a liquidator is appointed. The bank's executive powers are suspended under the federal law.

The commercial bank for its assets is rated the 736th in Russia's banking system as of January 1, 2014.

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