Serbia’s central bank has revoked the operating licence of Alta Bank, a lender known for serving Russian clients, citing a significant deterioration in the bank’s financial condition and liquidity risks. The National Bank of Serbia announced the decision on Saturday, ending Alta’s operations and suspending its services.
The closure follows a period of intensified scrutiny from European regulators, including the European Central Bank (ECB), which raised serious concerns about suspected money laundering activities linked to the bank. ECB officials questioned whether Alta Bank could adequately verify the legitimate origin of its deposits.
Alta Bank played a notable role in facilitating financial transfers for Russian individuals and companies following Russia’s invasion of Ukraine in 2022. It was among the few Serbian banks willing to provide services to Russian nationals and entities amid western sanctions. According to sources familiar with the matter, the bank saw its client deposits grow more than fivefold by the end of last year compared to pre-war levels, driven particularly by significant inflows in Russian roubles. In 2022, Alta reported foreign exchange risk levels reaching 42 percent, more than double the regulatory threshold of 20 percent, reflecting heightened exposure to currency fluctuations.
The bank’s shutdown notably impacts Serbia’s growing Russian expatriate community. Approximately 55,000 Russian citizens held residence permits in Serbia by the end of last year, a tenfold increase since 2021. Several Russian residents, including journalist Pavel Belyavin, reported that their Alta accounts were frozen following the suspension, with limited access through the bank’s app for balance inquiries only.
The decision to revoke Alta’s licence followed recent political developments in Serbia. It came a week after longtime Serbian President Aleksandar Vučić lost parliamentary elections to a student-led movement known as the Student List, which campaigned against corruption and perceived authoritarian governance. In the days after the vote, Serbian officials noted substantial withdrawals and international transfers from Alta accounts.
The Public Prosecutor’s Office for Organised Crime urged authorities to investigate Alta’s business practices, and the incoming Student List parliamentary majority has called for a thorough inquiry as it prepares to assume government leadership in January.
Serbia’s deposit insurance scheme guarantees coverage of up to €50,000 per depositor, but customers with larger holdings could face uncertainty amid the bank’s closure. Alta Bank did not respond to requests for comment concerning the licence revocation and related accusations.