Central Bank annuls Bank24.ru’s license

September 17, 2014. Bank24.ru’s banking license entitling the bank to perform banking transactions was annulled by order of the Bank of Russia, the regulatory body’s website states.

The decision to use this weapon of last resort, namely, to annul the bank’s license, was taken by the Bank of Russia because the lending institution did not meet the federal laws regulating banking activity or the normative acts of the Bank of Russia; Bank24.ru had also repeatedly violated the requirements set out in Article 7 (excluding paragraph 3 of Article 7) of the Federal Law On Countering Money-Laundering and Terrorism Financing Activity throughout one year; measures described in the Federal Law On the Central Bank of the Russian Federation (the Bank of Russia) were enacted.

Bank24.ru failed to meet the legal requirements relating to countering money-laundering activity and terrorism financing activity in that it did not direct data on transactions subject to obligatory surveillance to respective authorities. The bank’s internal control rules did not correlate with the Bank of Russia’s requirements.

Under the Bank of Russia’s order, provisional administration of the bank was adopted. The lending institution’s executive bodies’ authority was terminated in accordance with the federal laws.


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