As of February 20, 2023, Citibank announced a new policy that imposes a fee on holding balances once the bank service agreement is terminated. This change was communicated through an official press release published on Citibank’s website, outlining the adjustments to the CitiOne and Citigold banking service packages.
According to the release, the new tariff applies to the cost of servicing an account after the Banking Service Agreement ends. Specifically, a charge of 500 rubles per month will be assessed for accounts that remain open after termination. If the account balance falls below the required commission amount, the fee will be drawn from the available balance, effectively reducing the remaining funds there.
Earlier, Citibank issued guidance that some customers would see currency conversions mandated for certain holdings. The bank also announced that it would discontinue handling current accounts denominated in Canadian dollars, Danish kroner, Hong Kong dollars, Norwegian krone, Swedish krona, Singapore dollars, and New Zealand dollars. This step affects clients with multi-currency portfolios and those who relied on the ability to hold these currencies within a Citibank account.
In addition to these changes, Citibank signaled a broader shift in its Russian market operations. The parent organization, American Citi, released a statement detailing how corporate services would be affected within the Russian Federation. The message indicated that most services for corporate clients would be withdrawn, with a planned cessation of these services by the end of the first quarter of 2023. This broad retreat reflects an alignment with corporate policy changes and the evolving regulatory and market environment in the region.
From a customer perspective, the combination of fee imposition, currency divestitures, and the winding down of corporate services translates into a period of significant strategic adjustment. Clients with remaining balances or active corporate accounts faced the need to reassess their banking arrangements, evaluate alternatives, and address potential operational impacts. Financial planners and relationship managers typically advise clients to review current terms, understand fee triggers, and consider proactive steps such as closing accounts or consolidating assets to minimize disruption and preserve liquidity where possible.
The announced changes also underscore the importance of monitoring notices from financial institutions, especially when service agreements reach their end dates or when there is a clear shift in supported currencies. Clients are encouraged to verify the most up-to-date terms, confirm any pending conversions, and confirm the status of existing holdings. Banks frequently publish updates that affect fees, currency availability, and the scope of services, which can influence overall costs and portfolio management strategies. In such scenarios, seeking clarification from banking representatives can clarify timelines and any exceptions that may apply to particular accounts or corporate arrangements.
For individuals and organizations with exposure to this evolving landscape, understanding the implications of these policy changes is essential. While the fee structure creates a predictable monthly cost in the event of termination, it is equally important to reconcile that cost against the value provided by the broader banking package, especially if ongoing services are reduced or restructured. The situation also highlights the broader considerations of cross-border liquidity, multi-currency holdings, and the impact of geopolitical and regulatory developments on international banking relationships. As regulatory stances and market conditions continue to evolve, clients should stay informed through official communications and seek professional guidance when needed to navigate a changing financial ecosystem.