The Bank of Russia has cancelled a banking license held by Mestny Credit (Registration No. 3370, Moscow), the regulator reported on its website.
The Bank of Russia made this decision as the lending institution failed to comply with federal laws regulating banking activities and also CBR’s statutory acts, numerously breached during the year requirements provided for by Article 7 (except for Article 7.3.) of the Federal Law “On Counteracting Legalization (Laundering) of Criminal Income and Financing of Terrorist Acts”.
The regulator emphasized that Mestny Credit failed to observe requirements of anti-money laundering laws, failing to timely provide authorities with data on operations that are subject to mandatory supervision. In addition, the lending institution got involved in suspicious transactions.
During 2013 clients’ suspicious operations to wire funds abroad under foreign trade agreements topped Rub 5.5 bln. Mestny Credit’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 noted that Mestny Credit is not a member of the national deposit insurance system.
