The CBR has recalled licenses for banking operations from COMIBANK (Syktyvkar) and VOLGO-DON BANK (Volgograd). According to the CBR, COMINBANK systematically violated the procedure for drafting and submitting reports to the Central Bank. In August 2007, the bank’s transactions, linked with residents’ payments to non-residents under dubious deals involving commodities, totalled R5.8b. Participants in those transactions are clients of the bank — four foreign companies, registered in Britain, and one company registered in the British Virgin Islands. VOLGO DON BANK did not conduct a proper identification of its clients, violated the procedure for forming loan reserves, failed to observe cash discipline and accounting regulations. In the period preceding the license cancellation, the bank has issued clients R3.4 billion worth of cash and, on instruction from several clients, made payments to Bulgarian companies with one registered legal address under dubious deals with commodities, worth R9.2b.
Source: BANKIR.RU, August 30, 2007
