The Central Bank revoked the license of Qiwi-Bank, a member of the Qiwi Group. The bank was accused of servicing "shady businesses", including online casinos, crypto exchanges and bookmakers. This happened shortly after the announcement of the deal to sell the Russian division of Qiwi 23.75 billion rubles.
The Central Bank revoked the license of Qiwi Bank
The Central Bank of Russia (CBR) has revoked the license of Qiwi-Bank, a member of the Qiwi Group. This is stated in the message of the regulator. The reasons were violations of the Law "On Banks and Banking Activities".
In particular, the Central Bank recalled that over the past year, measures were applied to Qiwi Bank five times, including restrictions on individual operations twice. In addition, Qiwi Bank, according to the Central Bank, "systematically violated the requirements of legislation in the field of countering the legalization of proceeds from crime and the financing of terrorism."
Qiwi Bank and shadow business
Qiwi Bank ranked 89th in the Russian banking system in terms of assets. At the same time, Qiwi Bank "was not a significant lender to the real sector of the economy." "The activity of Qiwi Bank was characterized by involvement in high-risk transactions aimed at ensuring settlements between individuals and shadow businesses, including money transfers in favor of crypto exchanges, illegal online casinos, bookmakers, etc., as well as the search for new ways to circumvent the restrictions imposed by the regulator," the Central Bank said.
In addition, the Central Bank stated that "numerous cases of Qiwi Bank opening Qiwi wallets using personal data of individuals without their knowledge and conducting operations on them were established, which created significant risks for citizens." The regulator's report emphasizes that Qiwi Bank did not take effective measures to reduce risks in its activities, despite the active supervisory work of the Central Bank, and continued to conduct high-risk operations."
Information about Qiwi Bank's operations that have signs of committing criminal offenses has been sent by the Central Bank to law enforcement agencies. At the same time, citizens and organizations will be able to continue money transfers, including without opening an account, through other credit organizations and payment systems, the Central Bank believes. Also, a temporary administration has been appointed in Qiwi Bank, the functions of which are assigned to the Deposit Insurance Agency.
Qiwi has not received any comments on these measures at the time of publication. The Qiwi press service did not respond to a request from CNews regarding the revocation of the license from Qiwi Bank. On the morning of February 21, 2024, Qiwi's stock quotes on the Moscow Stock Exchange fell by 24% to 360 rubles per security.
How previously the Central Bank restricted the work of Qiwi-bank
It is known that in 2020, the Central Bank revealed a number of violations at Qiwi Bank, and also banned or restricted some operations, for example, payments to foreign sellers and money transfers to prepaid cards from corporate accounts.
In 2023, the Central Bank introduced new sanctions against Qiwi Bank. In particular, there is a limit on the withdrawal of funds from the "Qiwi wallet" to cards and accounts of other banks-no more than 1 thousand rubles per month. Transfers from a wallet using the Fast Payment System (SBP), cash withdrawals from Qiwi-issued bank cards, and transfers from "Qiwi-wallets" via the Contact payment system (owned by Qiwi)were also prohibited . Also, a ban was introduced on repayment of loans from any banks, except for loans from microfinance organizations.
A brief history of Qiwi
Qiwi payment system was created in 2008 by combining two payment terminal systems – OSMP and E-port. At the same time, Qiwi began to actively develop the direction of electronic wallets.
In accordance with the legislative changes adopted in the late 2000s, payment terminal systems must operate as agents of credit institutions-banks or non - bank credit organizations (NPOs). In 2011, the Law "On the National Payment System" was adopted, according to which a credit institution should also act as an operator of electronic money systems.
In 2013, Qiwi conducted an IPO (initial public offering) on the US Nasdaq exchange, and subsequently the company also entered the Moscow Stock Exchange. The main owner of the company is Sergey Solonin. In the spring of 2022, the Nasdaq administration suspended trading in Qiwi shares, and the same fate awaited most companies with Russian roots that were listed on foreign stock exchanges.
In the summer of 2023, the Nasdaq administration approved the resumption of trading in Qiwi shares, subject to the company's withdrawal from Russia. In early 2024, it was announced that Qiwi JSC, the Russian division of Qiwi, will be sold to Qiwi CEO Alexander Protopopov. The transaction amount will amount to 23.75 billion rubles. Payment must be made within four years.
How many users did Qiwi Wallet have?
At the end of 2020, 18.1 million active "Qiwi-wallets" were registered, the funds of their owners were stored in the "Qiwi Bank".
By the end of 2021, their number decreased by 22% to 14.1 million. This was due to the restrictions adopted by the Central Bank. Including 1.3 million wallets stopped using, as they were created exclusively for betting, but in 2021 Qiwi lost the function of their service (MCC).
At the end of 2022, the number of active Qiwi wallets increased by 14% to 13.8 million. This was due to restrictions on traditional bank payments.
The Central Bank revoked the license of Qiwi Bank
The Central Bank of Russia (CBR) has revoked the license of Qiwi-Bank, a member of the Qiwi Group. This is stated in the message of the regulator. The reasons were violations of the Law "On Banks and Banking Activities".
In particular, the Central Bank recalled that over the past year, measures were applied to Qiwi Bank five times, including restrictions on individual operations twice. In addition, Qiwi Bank, according to the Central Bank, "systematically violated the requirements of legislation in the field of countering the legalization of proceeds from crime and the financing of terrorism."
Qiwi Bank and shadow business
Qiwi Bank ranked 89th in the Russian banking system in terms of assets. At the same time, Qiwi Bank "was not a significant lender to the real sector of the economy." "The activity of Qiwi Bank was characterized by involvement in high-risk transactions aimed at ensuring settlements between individuals and shadow businesses, including money transfers in favor of crypto exchanges, illegal online casinos, bookmakers, etc., as well as the search for new ways to circumvent the restrictions imposed by the regulator," the Central Bank said.
In addition, the Central Bank stated that "numerous cases of Qiwi Bank opening Qiwi wallets using personal data of individuals without their knowledge and conducting operations on them were established, which created significant risks for citizens." The regulator's report emphasizes that Qiwi Bank did not take effective measures to reduce risks in its activities, despite the active supervisory work of the Central Bank, and continued to conduct high-risk operations."
Information about Qiwi Bank's operations that have signs of committing criminal offenses has been sent by the Central Bank to law enforcement agencies. At the same time, citizens and organizations will be able to continue money transfers, including without opening an account, through other credit organizations and payment systems, the Central Bank believes. Also, a temporary administration has been appointed in Qiwi Bank, the functions of which are assigned to the Deposit Insurance Agency.
Qiwi has not received any comments on these measures at the time of publication. The Qiwi press service did not respond to a request from CNews regarding the revocation of the license from Qiwi Bank. On the morning of February 21, 2024, Qiwi's stock quotes on the Moscow Stock Exchange fell by 24% to 360 rubles per security.
How previously the Central Bank restricted the work of Qiwi-bank
It is known that in 2020, the Central Bank revealed a number of violations at Qiwi Bank, and also banned or restricted some operations, for example, payments to foreign sellers and money transfers to prepaid cards from corporate accounts.
In 2023, the Central Bank introduced new sanctions against Qiwi Bank. In particular, there is a limit on the withdrawal of funds from the "Qiwi wallet" to cards and accounts of other banks-no more than 1 thousand rubles per month. Transfers from a wallet using the Fast Payment System (SBP), cash withdrawals from Qiwi-issued bank cards, and transfers from "Qiwi-wallets" via the Contact payment system (owned by Qiwi)were also prohibited . Also, a ban was introduced on repayment of loans from any banks, except for loans from microfinance organizations.
A brief history of Qiwi
Qiwi payment system was created in 2008 by combining two payment terminal systems – OSMP and E-port. At the same time, Qiwi began to actively develop the direction of electronic wallets.
In accordance with the legislative changes adopted in the late 2000s, payment terminal systems must operate as agents of credit institutions-banks or non - bank credit organizations (NPOs). In 2011, the Law "On the National Payment System" was adopted, according to which a credit institution should also act as an operator of electronic money systems.
In 2013, Qiwi conducted an IPO (initial public offering) on the US Nasdaq exchange, and subsequently the company also entered the Moscow Stock Exchange. The main owner of the company is Sergey Solonin. In the spring of 2022, the Nasdaq administration suspended trading in Qiwi shares, and the same fate awaited most companies with Russian roots that were listed on foreign stock exchanges.
In the summer of 2023, the Nasdaq administration approved the resumption of trading in Qiwi shares, subject to the company's withdrawal from Russia. In early 2024, it was announced that Qiwi JSC, the Russian division of Qiwi, will be sold to Qiwi CEO Alexander Protopopov. The transaction amount will amount to 23.75 billion rubles. Payment must be made within four years.
How many users did Qiwi Wallet have?
At the end of 2020, 18.1 million active "Qiwi-wallets" were registered, the funds of their owners were stored in the "Qiwi Bank".
By the end of 2021, their number decreased by 22% to 14.1 million. This was due to the restrictions adopted by the Central Bank. Including 1.3 million wallets stopped using, as they were created exclusively for betting, but in 2021 Qiwi lost the function of their service (MCC).
At the end of 2022, the number of active Qiwi wallets increased by 14% to 13.8 million. This was due to restrictions on traditional bank payments.
