MOSCOW, February 20 (RIA Novosti) - The Moscow Arbitration Court Tuesday recognized bankruptcy of VIP-Bank, whose former board chairman, Alexei Frenkel, has been charged with masterminding the murder of senior banking regulator Andrei Kozlov last September.
The small privately-owned VIP-Bank was stripped of its license in June 2006 for what the Central Bank said were violations of money laundering prevention laws, particularly delays in reporting transactions requiring checks by the financial watchdog. Risky credit policy and accounting violations were also cited by the country's main bank.
Bankruptcy procedures for a term of twelve months have been launched at the bank and the Agency for Deposit Insurance has been appointed as its bankruptcy manager.
According to the bank's provisional administration, VIP-Bank's assets total 350.3 million rubles ($13.2 million), while liabilities amount to 703.4 million ($26.5 million).
