UAE banks begin massively blocking accounts of Russian companies - Media
Illustrative photo: The UAE seeks to identify clients whose activities have little connection to the country (Getty Images)
Banks in the United Arab Emirates have begun massively blocking the accounts of Russian companies, with the issue reportedly linked to sanctions, The Moscow Times reports.
According to media reports, in recent months, banks in the UAE have launched a "cleanup" of Russian companies, whose number in the country has exceeded 4,000. In addition, payment monitoring has been significantly tightened.
Lawyers and representatives of consulting firms say that between 20% and 30% of Russian companies in the UAE have faced audits, operational restrictions, or direct account closures.
Accounts can even be closed if a client fails to answer a bank call or does not send a required letter at the exact specified time. Moreover, banks have strict requirements — sometimes demanding up to 20 certified documents to be submitted within 24 hours.
This approach stems from the UAE’s efforts to identify clients whose business has little or no connection to the country.
Lawyers also note that banks are monitoring compliance with sanctions. As a result, accounts are being closed not only for sanctioned companies but also for those working with partners listed on sanctions lists from the United States, the European Union, and the United Kingdom.
Other issues with financial operations in Russia
Russia recently appealed to the West with a call to ease sanctions. One of its conditions was the restoration of access to the SWIFT system.
The blocking of SWIFT access for Russian banks is one of the sanctions imposed by the EU to weaken Russia’s economy and help bring an end to the war in Ukraine.
