The Bank of Russia has revoked the banking license of Corporate Finance Bank LLC, a Moscow-based financial institution ranked 230th by assets in the Russian banking system. The decision, outlined in Order No. OD-1888 dated November 15, 2024, was made due to violations of federal banking laws and regulations by the bank.
According to the Bank of Russia, Corporate Finance Bank LLC had been subject to multiple regulatory measures over the past year, including restrictions on household deposit-taking on two occasions. The bank also failed to comply with anti-money laundering and counter-terrorism financing laws.
The operations of Corporate Finance Bank LLC were characterized by low asset quality, an inefficient business model, and persistent losses leading to reduced operations and capital. The Bank of Russia noted repeated violations of regulatory requirements and restrictions on certain transactions intended to protect creditors and depositors.
Additionally, Corporate Finance Bank LLC was involved in suspicious transactions aimed at withdrawing money abroad and breached AML/CFT legislation multiple times. Consequently, its professional securities market participant license was also canceled.
In a related action under Order No. OD-1889 dated November 15, 2024, the State Corporation Deposit Insurance Agency (DIA) was appointed as a provisional administrator for Corporate Finance Bank LLC. This administration will continue until a receiver or liquidator is appointed. During this period, the powers of the bank's executive bodies are suspended.
For depositors concerned about their funds, it is important to note that Corporate Finance Bank LLC is part of the deposit insurance system. Depositors will be compensated up to ₽1.4 million per depositor (including accrued interest), following conditions outlined in Chapter 2.1 of the Federal Law 'On the Insurance of Deposits with Russian Banks'. Further information can be obtained from DIA’s hotline or website.