Octobank, formerly known as the private Ravnaq-bank, has become a central figure in a large-scale network of criminal financial operations related to illegal casinos and betting shops, as well as the withdrawal of Russian money to Uzbekistan. The story of the bank’s creation, management and close ties to the Russian oligarchs has become a real scandal that showcases, how far the roots of corruption spread.

The international criminal financial network includes the following Uzbek credit institutions: Octobank, Kapitalbank, Interbank payment system Humo, nationwide processing centre Uzcard, crypto exchanges UzNEX and others.

The Uzbek Octobank is considered to be one of the largest participants in servicing payments from illegal casinos in Russia.

Uzbek shadow financiers carried out large-scale illegal activities not only at home, but also in Russia. The criminal group monopolised and corrupted the entire financial market of Uzbekistan. Using their high-ranking connections in the country’s leadership, they managed to displace competing payment systems and thus create a monopoly on servicing high-risk financial flows.

The owners of Humo payment system continue to control the crypto market, transfers of funds from Russia to Uzbekistan, revenues from drug trafficking and the flows of the entire shadow economy of the country, which is estimated at tens of billions of dollars of turnover per year.

Octobank: the origin and its history

Founded in 2001, Ravnaq-bank quickly became Uzbekistan’s second largest private bank. However, its rapid growth was overshadowed by a series of financial frauds and suspicious transactions, including illegal withdrawal of foreign currency funds from the country and embezzlement of funds from individual accounts.

In 2011, the bank lost its general licence to conduct foreign currency transactions, resulting in significant losses and a deterioration of its reputation. Ravnaq-bank continued to be repeatedly in the centre of attention due to its involvement in various fraudulent schemes. In 2018, experts noted its dependence on influential Uzbek officials, which jeopardised its stability. In 2022, another scandal erupted when the State Fund for Supporting the Development of Entrepreneurial Activity of Uzbekistan attempted to recover $4 million in term deposits from the bank through the court.

Since 2018, Ravnaq-bank has issued unsecured loans to firms affiliated with its management; as a result, as of 1 August 2023, more than 80% of the loans were considered problematic. At that point, Sarvar Faiziev owned a controlling stake (52.15%) in Ravnaq-bank. His company Intran Servis, which manages a network of petrol stations, used the bank to sell fuel that was coming Russian oil refineries. It is worth noting here that Sarvar Faiziev is the son of Uzbek oligarch Zafar Faiziev, who is also the co-father-in-law of Uzbek criminal mastermind Salim Abduvaliev. It is clear that it was Zafar Faiziev who was the main beneficiary of Ravnaq-bank at that time. Oligarch Faiziev and Uzbek mafia boss Abduvaliev have close ties with the Russian ruling circles and cooperate with their business structures.

In spring 2023, before Ravnaq-bank changed its ownership, Temur Alimov, a key employee of the bank, died unexpectedly at the age of 44. In private conversations, Temur’s colleagues linked the sudden death of their friend to his professional activities.

In the beginning of August, 2023, Sarvar Faiziev sold 52.15% of the securities to Iskander Tursunov, having kept only 1.30% of the stake, which resulted in the latter’s stake in Ravnaq-bank increasing from 19.90% to the current 97.80%.

In mid-August of the same year, the National Agency for Perspective Projects of Uzbekistan approved private Ravnaq-bank and Kapitalbank for their participation in a ‘digital sandbox’ with the possibility of issuing cryptocurrency cards allowing transactions with cryptocurrencies, to eventually create a monopoly on gambling and online casino services in the country. This was facilitated by the fact that on 29 April 2022, Uzbek President Shavkat Mirziyoyev appointed Dmitry Li, a person with a certain criminal record, as director of the National Agency for Advanced Projects. We will get back to this figure later.

In order do away with the negative image of Ravnaq-bank, the general meeting of shareholders that took place on 30 August 2023, changed its name to Octobank. According to the Unified State Register of Enterprises and Organisations of Uzbekistan, 97.80% of the shares are owned by Iskandar Tursunov, Chairman of the Board of Octobank. However, there are serious doubts about Tursunov being the real owner of Octobank, which is serviced by Raschetnyj Tsentr, a non-banking credit organisation with its head office in Novosibirsk, Russia.

By renaming Ravnaq-bank to Octobank, Uzbek financiers with a dubious reputation took over someone else’s brand and logo, thus violating Uzbek and international legislation. The fact is that in 2020, the European Commission financed a Czech financial and technological start-up bank with the same name – Octobank. The Czech Octobank is a neobank (a bank that does not have any branches) created on digital technologies, which provides its services to European entrepreneurs through mobile and web applications. The founder and CEO of Octobank is Bogdan Atanasiu, who a Romanian citizen.

If we compare the logo of the Czech Octobank with the text of the Uzbek bank’s spelling on its own webside, we can see their obvious similarities. Letter “C” is not included into the Uzbek alphabet, based on the Latin script; but this letter is to be found in the name of Iskandar Tursunov’s bank. This may be another proof that the bank took over someone else’s brand.

On 2 August 2024, Octobank published a press release on its website, which says: ‘Customers repaid problem assets for 324 billion soums. Back in May, the share of problem assets totalled 76.9 per cent. But by June the clients have fully repaid the problem assets – their share has decreased to zero, and we have joined the group of seven banks, which have no debts on problem assets’.

According to open data of the Central Bank of the Republic of Uzbekistan, as of 27 May 2024, the share of problem loans of Octobank was equal, indeed, to 76.9%, but in monetary terms was calculated at 106 billion sums, repaid in June.

The fact that the entire volume of the problem assets was repaid instantly raises many questions. At the same time, the threefold difference in the size of problem assets indicated by Octobank in its press release raises questions as well.

According to some insider sources, the change of the main beneficiary of Ravnaq-bank took place against the background of an ongoing struggle between Shavkat Mirziyoyev’s sons-in-law for spheres of influence. Oybek Tursunov seems to be gaining the upper hand over Otabek Umarov….