The UAE has tightened control over Russian companies and banking transactions with them
The duration of inspections has increased, and Russians are increasingly facing rejections
Russian companies doing business in the UAE are facing more and more questions from local banks as the country attempts to get off the gray list of the FATF, the world's main anti-money laundering organization. This is evidenced by the results of a survey among business owners and consultants conducted by Bloomberg.
Control over financial transactions, including money transfers to Russia or third countries, has become stricter. Some banks require more documents and sometimes block funds altogether, questioning their origin or requesting justification for the transfer.
The duration of checks has increased, and more and more often you have to face rejections, Bloomberg writes.
Sources note that the new approach applies to all clients regardless of citizenship, but especially to Russians due to unprecedented sanctions against them.
The UAE's fight against illegal activities in the precious metals market and the US sanctions against leading Russian gold miners have led to the shift of gold trading from Dubai to Hong Kong.
Another major Russian mining company whose shareholders are under sanctions has been unable to open a bank account for several months.
An official in the UAE said that his country "takes its role in protecting the integrity of the global financial system very seriously" and reiterated the UAE's "continued commitment to fighting economic crime and illegal networks at home and abroad.
The UAE still attracts most Russian large companies fleeing sanctions. However, some medium-sized enterprises are inclined to "relocate" to neighboring Gulf countries, such as Oman or Bahrain, which are not yet under pressure from the United States.
Background. As a reminder, the UAE has agreed to limit re-exports to Russia of goods used for military purposes against Ukraine.
If you have read this article to the end, we hope that means it was useful for you.
We work to ensure that our journalistic and analytical work is of high quality, and we strive to perform it as competently as possible. This also requires financial independence. Support us for only UAH 196 per month.
Become a Mind subscriber for just USD 5 per month and support the development of independent business journalism!
You can unsubscribe at any time in your LIQPAY account or by sending us an email: [email protected]
