Banking licence of Corporate Finance Bank LLC revoked
By its Order No. OD-1888, dated 15 November 2024, the Bank of Russia revoked the banking licence of Moscow-based Corporate Finance Bank LLC (Registration No. 2684) (hereinafter, the Bank). The credit institution ranked 230th by assets in the Russian banking system.1
The Bank of Russia made this decision in accordance with Clauses 6 and 6.1 of Part 1 of Article 20 of the Federal Law ‘On Banks and Banking Activities’,2 based on the facts that Corporate Finance Bank LLC:
- violated federal banking laws and Bank of Russia regulations, due to which the regulator repeatedly applied measures against it over the last 12 months, including restrictions on household deposit-taking on two occasions;3 and
- failed to comply with the laws on anti-money laundering and countering the financing of terrorism (AML/CFT).
For an extended period of time, the Bank’s operations were marked by low quality of assets, an inefficient business model, and persistent losses, which resulted in scaling down operations and decreasing capital. The Bank of Russia repeatedly identified violations of regulatory requirements and restrictions on individual types of transactions introduced to protect creditors and depositors committed by the credit institution.
Moreover, Corporate Finance Bank LLC was involved in suspicious transactions conducted by customers primarily to withdraw money abroad and breached the AML/CFT legislation on multiple occasions.
The Bank of Russia also cancelled Corporate Finance Bank LLC’s professional securities market participant licence.
By its Order No. OD-1889, dated 15 November 2024, the Bank of Russia appointed the State Corporation Deposit Insurance Agency (DIA) as a provisional administrator to manage Corporate Finance Bank LLC. The provisional administrator will exercise its functions until a receiver4 or a liquidator5 is appointed. In accordance with federal laws, the powers of the credit institution’s executive bodies were suspended.
Information for depositors: Corporate Finance Bank LLC is a participant in the deposit insurance system; therefore, its depositors will be compensated for their deposits in the amount of 100% of the balance of funds, but no more than a total of ₽1.4 million per depositor (including interest accrued), taking into account the conditions stipulated by Chapter 2.1 of the Federal Law ‘On the Insurance of Deposits with Russian Banks’.
Deposits are to be repaid by the DIA. Depositors may obtain detailed information regarding the repayment procedure 24/7 at the DIA’s hotline
1 According to the financial statements as of 1 November 2024.
2 The Bank of Russia made this decision due to the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, repeated violations within a year of the requirements stipulated by Articles 6, 7 (excluding Clause 3 of Article 7), and 7.2 of the Federal Law ‘On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’, as well as the requirements of Bank of Russia regulations released in accordance with this Federal Law, taking into account repeated application within a year of measures stipulated by the Federal Law ‘On the Central Bank of the Russian Federation (Bank of Russia)’.
3 A depositor is a citizen of the Russian Federation, a foreign citizen, a person without citizenship, including those engaged in entrepreneurial activities, lawyers, notaries, and other individuals who opened bank accounts (deposits) to carry out professional activities stipulated by the relevant federal law, or a legal entity specified in Article 5.1 of the Federal Law ‘On the Insurance of Deposits with Russian Banks’ which concluded a bank deposit/account agreement with a bank, or any of the above mentioned persons in whose favour the deposit was made and/or who is the holder of a savings certificate, or the owner of a special account (special deposit) intended to form and use the assets of the fund of capital repairs of common property in an apartment building opened in accordance with the requirements of the Housing Code of the Russian Federation.
4 In accordance with Articles 127 and 189.68 of the Federal Law ‘On Insolvency (Bankruptcy)’.
5 In accordance with Article 23.1 of the Federal Law ‘On Banks and Banking Activities’.
При использовании материала ссылка на Пресс-службу Банка России обязательна.