UPDATE: Russian cbank revokes licenses from two small Moscow banks

(Adds details in last paragraph)

MOSCOW, Nov 7 (PRIME) -- Russia’s central bank has revoked banking licenses from Moscow-based Agrosoyuz Bank, ranked 198th by assets as of October 1, and Bank for Innovation and Development, or BID Bank, ranked 286th, the regulator said on Wednesday.

The central bank said it uncovered a lack of over 1.3 billion rubles of cash at Agrosoyuz Bank, comparable to the size of the bank’s shareholders’ equity, during a recent probe. The bank provided false reports to the regulator to hide its real financial state.

The bank also did not comply with federal laws regulating banking activities and the central bank’s legal acts, including on money laundering and terrorism financing.

“There were signs of unscrupulous behavior of the management related to the withdrawal of liquid assets with detriment to the interests of creditors and depositors,” the central bank said.

BID Bank also did not comply with federal laws regulating banking activities and the central bank’s legal acts, including on money laundering and terrorism financing.

The bank was also involved in dubious transit operations.

The banks are members of the deposit insurance system, which means that each depositor may receive up to 1.4 million rubles in compensation. Payments to depositors will start no later than on November 21, the Deposit Insurance Agency (DIA) said.

(65.9912 rubles – U.S. $1)

End