On October 17, the Central Bank of Russia recalled banking licenses from the non-banking lending organization, ALGORITHM (Moscow), and the MAGADANSKY bank (Moscow). According to the CBR, from July-September 2007, a group of residents, clients of the non-banking lending organization, engaged in activities, linked with economically senseless transfers of money to residents — clients of several lending organizations, whose licenses for banking operations were cancelled. The overall amount of those operations equalled roughly R12 billion. Additionally, in the third decade of September monetary funds in an amount equalling R16.7b were transferred to the accounts of two offshore companies, which were opened at ALGORITHM, by residents from dubious deals with commodities that did not cross the customs border of the Russian Federation. In the future, monetary funds were transferred on their instructions to non-residents to their accounts in banks in Ukraine, Moldova, Latvia, Estonia, Georgia, and Cyprus. MAGADANSKY took part in dubious transactions, worth over R12b, in favour of residents, clients of lending organizations, whose banking licenses were cancelled, the CBR said.
Source: BANKIR.RU, October 18, 2007
