×
Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Regulator Shuts Down 3 More Banks as Crackdown on Shady Transactions Continues

The Central Bank announced Wednesday that it was stripping three lenders of their licenses amid suspicions they were engaged in enabling money laundering and financing of terrorism.

The regulator said in a statement that Dagestan Bank, Moscow-based Monolit Bank and the Bank of Business Development in the Siberian city of Kemerovo would no longer be permitted to operate.

The Central Bank said Dagestan Bank, a lender based in the southern Russian province troubled by a long-running Islamism-fueled insurgency, had processed 1.6 billion rubles ($44.4 million) of suspect funds and failed to comply with internal control rules on combating money laundering and terrorist financing.

Business Development Bank transferred 4.8 billion rubles ($133 million) in suspicious transactions last year, the regulator said.

The Central Bank stopped short of accusing Monolit, the largest of the three banks, of money laundering, but said it had last year conducted 9 billion rubles' worth ($250 million) of suspicious transactions, failed to serve clients in a timely manner and engaged in a credit policy that was too high-risk.

Monolit had already halted operations in late February.

Authorities have been tightening control over the banking sector since last year, revoking the licenses of  30 banks in 2013 in a crackdown aimed at reining in shadow banking activity.

The increased pressure on banks has caused widespread unease, and experts predicted that it could precipitate a flood of new customers for the large state-owned banks that dominate the banking sector.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more