On Wednesday, the Bank of Russia announced the termination of Qiwi Bank’s banking license due to its involvement in high-risk operations, leading to a nearly 50% drop in its shares on the Moscow Exchange, hitting an all-time low. The regulator highlighted that this was the fifth action against Qiwi in the past year, citing systematic breaches of anti-money laundering and counter-terrorism financing laws.
Qiwi Bank’s Licence Revoked by Bank of Russia – Shares Collapse
The central bank stated, “Despite ongoing supervisory efforts by the Bank of Russia, Qiwi Bank failed to implement adequate risk mitigation measures and persisted in engaging in high-risk activities.”
Qiwi, a payment service provider listed on Nasdaq, acknowledged the license revocation, noting that temporary management had been appointed to the bank. The company communicated via Telegram, “We realise you have many questions. We are assessing the situation and will provide updates on further developments.”
Qiwi assured investors that the operations of Qiwi Group, which is separate from Qiwi Bank, were continuing without disruption.
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Following the announcement, the value of Qiwi Bank’s depositary receipts on the Moscow Exchange plummeted by 44.7% at 0917 GMT, reaching a new low. The significant decline triggered the exchange to adjust the share’s trading limits multiple times, conduct a discrete share auction to manage the volatility, and set a reference price.
Since the onset of the military actions in Ukraine in February 2022, trading of Qiwi’s American Depositary Shares on Nasdaq has been halted.
In January, Qiwi reported that it had agreed to divest its Russian operations, completing a restructuring initiative to maintain its Nasdaq and Moscow Exchange listings. The sale of its Russian business was anticipated to help preserve its presence on these exchanges.
