As of March 5, 2014 the Central Bank of Russia has revoked a banking license held by Makhachkala-based Commercial Bank for Social Development Dagestan.
The regulator’s data showed that the lending institution violated the requirements of anti-money laundering laws many times, failing to timely provide authorities with data on operations that are subject to mandatory control and proper identification of its clients. Internal control regulations for counteraction of legalization (laundering) of criminal income and the financing of terrorist acts, which the bank applied, did not meet the Bank of Russia’s requirements.
Also Bank Dagestan was involved in suspicious operations to give cash to corporate clients and individual entrepreneurs from their accounts, the regulator specified, noting such operations topped Rub 1.6 bln last year.
A temporary administration team was appointed, and the power and authority of the bank’s executive bodies were suspended.
Bank Dagestan is a member of the deposit insurance system and the revocation of a license is an accident insured.
As of February 1, 2014 retail deposits held at Bank Dagestan totaled just Rub 2.13 mln (No. 752 in terms of retail deposits among Russian banks, based on the Banki.ru data), and during slightly more than a year the indicator slid nearly 7x from Rub 14.65 mln as of January 1, 2013.
