As of March 5, 2014 the Bank of Russia has revoked a banking license held by Business Development Bank (BD Bank), which is headquartered in Kemerovo. Relevant information was posted on CBR’s website.
The measure of last resort was taken as during the year the lending institution violated many times the requirements of Article 7 (except for Clause 3 of Article 7) of the Federal Law “On Counteracting Legalization (Laundering) of Criminal Income and the Financing of Terrorist Acts”, the Bank of Russia’s press service noted. The regulator specified that the bank failed to fulfill the requirements of this law as to provide authorities with data on operations that are subject to mandatory control and proper identification of its clients. Internal control regulations which the bank applied did not comply with the Bank of Russia’s requirements.
The Bank of Russia also found out that Business Development Bank was involved “in large-scale cash and also non-cash suspicious operations”. In line with the regulator’s data, such transactions totaled Rub 4.8 bln in 2013.
A temporary administration team was appointed, and the power and authority of the bank’s executive bodies were suspended.
Business Development Bank is a member of the deposit insurance system and a cancelled license is an accident insured, the Bank of Russia noted.
Based on the Banki.ru data, as of February 1, 2014 the lending institution ranked 607th in Russia in terms of retail deposits (Rub 287.20 mln). During slightly more than 12 months (since the beginning of 2013) the bank’s retail deposits have jumped 14%.
