Central Bank revoked licenses from Sauber Bank and Irs Bank

The Bank of Russia has revoked the license to carry out banking operations from the St. Petersburg Sauber Bank and the capital bank Irs, according to the regulator’s website. Credit institutions rank 227th and 317th, respectively, in the Russian banking system in terms of assets.

Both banks violated the laws and regulations of the Central Bank. Sauber Bank’s license was revoked due to violations of the law in terms of combating money laundering and terrorist financing, as well as due to dubious foreign exchange transactions and high-risk transit transactions. Bank “Irs” underestimated the amount of reserves required for the formation of reserves and overestimated the value of property to improve financial indicators, and a significant part of its loan portfolio was made up of problem loans. In addition, a Moscow credit institution also took part in dubious transactions.

Both banks are members of the deposit insurance system, and the interim administration of the Central Bank has been appointed to them. The website of the Deposit Insurance Agency indicates that payments to depositors of both credit institutions will begin no later than June 11, 2021.