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Russia’s Central Bank revokes license from Kemerovo-based bank

The Central Bank of Russia noted Bank of Business Development was involved in major dubious cash and non-cash transactions

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MOSCOW, March 05. /ITAR-TASS/. The Central Bank of Russia (CBR) has issued a decree on March 5, 2014 revoking a license for banking transactions from the Kemerovo-based lending organization Bank of Business Development, the financial regulator said in a statement.

The Bank of Business Development is a member of deposit insurance system.

The decision to impose an extreme restriction revoking a license was taken by the CBR over numerous violations of requirements under Article 7 (except for Clause 3 Article 7) of the federal law on counteraction to money laundering and terrorism funding.

The financial regulator noted that the bank had broken legislative requirements in counteraction to money laundering and terrorism funding in submitting information in an authorized body about transactions subject to compulsory control and proper identification of its clients.

The internal control rules in the Bank of Business Development did not meet the CBR requirements. Meanwhile, the crediting organization was involved in major dubious cash and non-cash transactions. The volume of these transactions has reached 4.8 billion rubles (around $132.1 million) in 2013.

Provisional administration is appointed in the bank until a bankruptcy manager or a receiver is named. Powers of executive authorities of the lending organization are suspended according to federal laws.

As for the size of assets, the crediting organization was ranked at the 790th place in Russian banking system as of February 1, 2014.

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