As of September 16, 2014 the Central Bank of Russia has cancelled a banking license held by Bank24.ru (Registration No. 2227), the regulator said in a press release.
Specifically, Bank24.ru failed to comply with the requirements of the laws on counteracting the legalization of criminal income and the financing of terrorist acts, in particular, the bank provided an authorized authority with no data on operations subject to mandatory control, the Bank of Russia reported. The bank’s internal control regulations did not meet the regulator’s requirements, CBR specified.
At the same time, throughout 2013 and the first half of 2014 the lending institution was involved in suspicious cash and non-cash operations on a large-scale basis. The bank’s internal control system to counteract legalization of criminal income and the financing of terrorist acts did not prevent the lending institution from being involved in serving the shadow sector of the national economy.
Bank24.ru is a member of the national deposit insurance system.
Meanwhile, Bank24.ru advised its clients who are abroad to withdraw cash at ATMs as soon as possible, sending out SMSs with recommendations of this kind. Uralbusinessconsulting provided this information and the bank’s representative confirmed this to business daily Vedomosti.
“Because of the EU sanctions there may be delays in payment with your plastic card. If you are presently abroad, you’d better withdraw cash at an ATM during the day so that nothing spoils your wonderful vacation. If we are mistaken and you are in Russia at the moment, then there’s nothing to worry about,“ the news agency quoted the bank’s SMS distribution. The bank’s representative explained to Vedomosti that the bank’s plastic cards “are processed by a state-run bank which was hit by the sanctions,” assuring that sending out SMS is a measure of precaution and, for the time being, there has been not a single case of plastic card payment rejection.
Market participants noted that usually banks do not resort to SMS distribution and are surprised how sanctions of this kind could affect an ordinary Russian commercial bank. Until now only the Central Bank of Russia has applied sanctions to Bank24.ru. The regulator capped the bank’s cash operations relating to corporate clients with corporate cards, with the single monthly limit of Rub 300 mln for all clients. The Bank of Russia ordered the bank to limit operations which could be construed as “suspicious”, Bank24.ru management board chairman Boris Dyakonov explained. Later the regulator revised its account turnover restrictions from Rub 8.5 bln to Rub 29 bln a month, a source close to the bank said.
In December 2013 Bank24.ru pulled out from Life Group (it comprises Probusinessbank, Gazenergobank, Express-Volga, National Savings Bank, Bank Poidem! and VUZ-Bank).
