The Bank of Russia has revoked as of December 10 a banking license held by Buzulukbank (Registration No. 1282), the regulator’s press service reported.
Buzulukbank conducted a high-risk lending policy by investing the money in poor quality assets. Due to the loss of liquidity the lender failed to timely fulfill its obligations to creditors or deposit holders. The lending institution’s executives or owners took no efficient measures to bring its activities to normal and restore its financial standing, CBR noted.
Besides, the bank failed to meet the requirements of legislation in respect of the measures to counteract legalization (laundering) of criminal income and the financing of terrorist acts by performing proper identification of its clients. Meanwhile, the lender was involved in suspicious cash operations.
Buzulukbank is a member of the national deposit insurance system.
