Serbia's central bank has revoked the operating licence of Alta Bank, a lender used by Russians that has drawn international scrutiny over suspected money laundering. The National Bank of Serbia said on Saturday that it had decided to shut down Alta because "the bank's financial condition had significantly deteriorated, and there was a possibility of further deterioration", including of the bank's liquidity.
The decision came less than a week after longtime Serbian leader Aleksandar Vučić lost elections to a student-led movement that had protested against his alleged corruption and increased authoritarian rule. Alta's banking operations have been suspended, and some customers told the FT they have been unable to make withdrawals since Saturday. Serbia's deposit insurance scheme covers up to €50,000 per depositor, the Deposit Insurance Agency said. In the days after the election, Alta clients both withdrew large sums and wired significant amounts out of the country, Serbian officials told the FT.
Alta has played a significant role in facilitating transfers by Russian individuals and companies to and from Serbia since Moscow's 2022 invasion of Ukraine, according to people familiar with the matter. It is one of the few banks in Serbia willing to serve Russian individuals and companies. The European Central Bank previously raised serious concerns about the bank's operations, with officials questioning whether it could verify the legitimate origin of deposits.
The shutdown particularly affects Serbia's Russian expat community. By the end of last year, around 55,000 Russian citizens held residence permits in the country, more than 10 times the number before the invasion. Russian passport holders in Belgrade said their accounts had been frozen since Saturday, with the bank's app allowing only balance checks. The Public Prosecutor's Office for Organised Crime has called on authorities to investigate Alta's business operations and officials at the National Bank of Serbia over potential outflows from Alta accounts and money transfers abroad.
Source: Financial Times Companies · Summarized by HeadlinesBriefing