UAE banks close customer accounts in Russia

Banks in the United Arab Emirates have restricted settlements with the Russian Federation and started closing Russian companies and individuals' accounts.

This is reported in the Russian media regarding businessmen working in the United Arab Emirates and a representative of the Delovaya Rossiya association.

The trend was confirmed by tax and legal consultants. A source close to the Cabinet of Ministers told the Russian government about the problem, although they consider it non-critical and solvable.

"Now UAE banks do not accept money from Russia and do not make payments in the opposite direction," a representative of Business Russia said.

According to him, UAE banks continue to close the accounts of companies whose owners are Russian citizens, "including for non-transparent reasons."

It will be noted that the UAE banks began to tighten the policy about customers with Russian citizenship in the fall of 2023. Then credit organizations stopped accepting payments from Russia.

"In the payment chain had to add a bank in Hong Kong, but since February 2024 he refused to cooperate, settlements are now conducted in cryptocurrency.

For companies with Russian beneficiaries that do not receive money from Russia and do not transfer to Russia, the situation with banking services has become more complicated," the interlocutors told the Russian edition.

Vedomosti notes that UAE banks imposed restrictions on Russian clients before the US announced secondary sanctions in December 2023. Sources suggest that this may be due to a significant proportion of foreign shareholders in large credit organizations.

The newspaper's interlocutors noted that it is still possible to open an account in UAE banks for individuals or legal entities from Russia, but the procedure takes more time, and it can be accelerated by personal acquaintances with representatives of local elites.

Author - Serhii Kolomiets, 21/02/2024