As of February 11, 2014 the Bank of Russia has cancelled a banking license held by Moscow-based Link-Bank (Registration No. 2699), the regulator’s press service reported.
The regulator decided to apply last extreme measures to Link-Bank as the bank failed to fulfill federal laws regulating banking activities, and also the Bank of Russia’s statutory acts, CBR’s materials showed.
Link-Bank “formed no adequate reserves against possible loan losses appropriate to the accepted risks and also violated accounting procedures”, the Bank of Russia specified, adding the bank was involved in suspicious transactions as to take money out of the country using foreign trade agreements and transactions, and also in an operation to grant cash to corporate clients. Last year the aggregate amount of said operations topped Rub 20 bln, materials on the regulator’s website showed.
Link-Bank’s internal control regulations for counteraction of legalization (laundering) of criminal income and the financing of terrorist acts did not meet the Bank of Russia’s requirements. The lending institution’s executives and owners took no required measures to normalize its activities, the Bank of Russia specified.
The lending institution is a member of the national deposit insurance system.
