Serbia's central bank revokes Alta bank's licence amid mass withdrawal of funds

Revocation of licence and financial problems

Serbian regulatory authorities have decided to close Alta bank. The country's central bank officially revoked the institution's licence, citing that its "financial condition has significantly deteriorated". According to the Financial Times, Serbian officials stated that following the parliamentary elections, clients began to withdraw funds en masse.

Russian trail and previous inspections

Alta bank was notable for remaining one of the few Serbian financial institutions that continued to provide services to Russian citizens and companies even after the start of the war in Ukraine. Previously, the institution had been subject to an inspection by the European Central Bank due to suspicions of conducting money laundering operations.

Consequences for clients and investigation

Alta's operational activities have now ceased, and clients are unable to access their deposits. The state guarantees the return of funds to depositors, but only up to a limit of 50,000 euros. The prosecutor's office has already launched an investigation into the possible transfer of funds abroad.

Political context

The events took place against the backdrop of changes in Serbia's political landscape. The opposition "Student List" won the parliamentary elections. The leader of the losing party, former President Aleksandar Vučić, believes that the new authorities will introduce sanctions against Russia in March-April of next year.