21 Feb 2024 10:46

Qiwi receipts drop nearly 25% on news of revocation of Qiwi Bank's license

MOSCOW. Feb 21 (Interfax) - Qiwi American Depositary Receipts fell almost 25% (to 360.5 rubles per share) at the start of trading on the MOEX Wednesday on news of the revocation of Qiwi Bank's license.

The Russian Central Bank has revoked Qiwi Bank's license to conduct banking operations, the regulator said in a statement.

This is the first revocation of a bank's license in 18 months and the second since the end of February 2022. The last time the Central Bank revoked a bank's license was in relation to Krosna Bank in August 2022.

Qiwi Bank's license was revoked for violating both federal laws and Central Bank regulations with regard to banking activities. The CBR took action against the bank five times over the past 12 months, two of which required the introduction of restrictions on certain transactions. However, the bank did not take effective measures to reduce risks in its activities and continued to conduct high-risk transactions.

Qiwi Bank systematically violated legal requirements for combating the legalization (laundering) of proceeds from crime and the financing of terrorism. "Its activities were characterized by involvement in high-risk transactions aimed at ensuring settlements between individuals and shadow businesses, including transfers of funds in favor of crypto exchangers, illegal online casinos, bookmakers, etc., as well as seeking out new ways to circumvent restrictions introduced by the regulator," the Central Bank said.

In addition, the bank, without informing individuals, opened Qiwi wallets with their personal data and conducted operations with them, creating significant risks for citizens.

Qiwi has been placed under temporary administration, which will operate until a bankruptcy trustee or liquidator is appointed.

Qiwi Bank is a participant in the deposit insurance system.

Based on 2023 financial results, Qiwi Bank ranks 73rd in assets in the Interfax-100 ranking.