Russian central bank cancels license of small Moscow bank
MOSCOW, Apr 16 (PRIME) -- The Russian central bank has recalled the license from Moscow-based United Financial Capital Bank (UFC Bank), ranked 127 by assets as of April 1, the authority said in a statement on Monday.
The bank used a risky business model based on lending to producers and distributors of alcoholic beverages and financed mutually dependent companies in the industry using schemes to escape restrictions by the central bank, it said.
UFC Bank also repeatedly violated criminal income legalization and the terrorism financing law by failing to provide information on operations subject to obligatory control and trustworthy reports to the central bank on time.
A corporate conflict in one of the largest borrowers rendered it unable to service debt to the bank, the central bank said.