The UAE Is Distancing Itself from the rf: Banks Are Purging Their Client Base

This year, in July, financial institutions in the United Arab Emirates tightened control over the activities of russian companies. About 30 % of the rf’s enterprises received notifications of restrictions on financial transactions or closure of bank accounts.

The main reasons for their closure are no or untimely response to bank inquiries, errors in documents, inconsistency of financial flows with the declared activities, ties with countries on the FATF “blacklist” or with persons/entities under international sanctions, etc.

Scrutiny began in February 2024, after the United Kingdom imposed sanctions on UAE companies which helped circumvent sanctions against russia. The situation gained momentum after the adoption of the 18th EU sanctions package, which for the first time included Emirati entities linked to russia.

The UAE’s financial institutions do not want to be put on the FATF's “gray list” again because of russia, so they show their readiness to comply with the global sanctions regime.