Central Bank of UAE Investigating Impact of US Sanctions on Russian Bank MTS

The Emirates News Agency said on Friday that the UAE Central Bank was studying available options in regarding the new status of the Russian bank “MTS”, which obtained the license to operate in the country last year.

The Russian bank was included in a new sanctions package announced on Friday.

“The Central Bank is currently studying the available options regarding the status of the new bank, and will take the appropriate decision on this matter now, taking into account the obligations assumed by the branch during the previous period,” the agency said. .

The UAE Central Bank had granted a license to MTS Bank to open a branch in Abu Dhabi, according to the licensing procedures it approved, after the bank met the criteria to license branches of foreign banks.

The agency said the bank has helped support legitimate trade between the two countries and serve the Russian community in the UAE, under the supervision of the Central Bank.

The Central Bank of the UAE reviewed the branch’s anti-money laundering and counter-terrorism financing policies and reviewed related electronic systems prior to the commencement of branch operations in the UAE, as per the licensing requirements of banks required to conduct business and, given the circumstances in the country of the bank’s headquarters, the Central Bank has supervised transactions associated with trade financing that exceed a certain limit.

On February 8, the “Financial Times” newspaper quoted officials informed about the decision to license the Russian bank in the UAE, that the decision of the Central Bank of the UAE to license the Russian bank, which is not subject to sanctions (at the time), they will meet the growing demand for financial services for Russian expatriates.

“It’s about him studio of feasibility and the number of Russians currently living in the UAE,” one of the officials said.

Many Russians left their country to escape military service after the war in Ukraine, but many of them complained about the impossibility of opening bank accounts in the countries in which they went.