Several Swiss banks have begun to scrutinize how funds flow through the accounts held by Russian customers, signaling a shift in how financial institutions approach customers connected to Russia. Financial institutions have announced that accounts tied to taxpayers who direct payments to the Russian budget may face tighter scrutiny or closure. This development was reported by RBC, citing sources familiar with the matter.
Alarms about potential account closures surfaced about a month earlier when bank staff started reaching out to clients with calls urging them to discontinue operating Russian businesses and to redirect tax payments away from the Russian state budget. A notable voice in the field, Roman Kudinov, who leads the Swiss law firm LEOLEX, indicated that, as of that moment, no formal actions had been initiated by Swiss banks, though the warning signs were already present. His assessment pointed to a period of caution rather than a wave of immediate enforcement, suggesting banks were testing compliance boundaries and evaluating risk exposure before moving to formal measures.
According to other counsel familiar with the situation, around ten individuals had approached the same law practice after receiving unofficial alerts from bank personnel. The messages implied that continued ownership of Russian business interests and the payment of taxes in Russia could trigger adverse actions on accounts. The conversations hinted at a broader climate within the Swiss banking sector where risk controls are tightening for clients connected to Russia, even when these clients might be operating with legitimate business purposes or diversified financial arrangements.
Another insider offered a different take, admitting that some clients faced direct threats of account restrictions. A third source confirmed that such warnings were circulated by staff at UBS, Switzerland’s largest bank, underscoring the possibility that major lenders could take a more conservative stance toward Russian-related business activity. The implications extend beyond individual accounts, potentially affecting corporate structures, investment flows, and the ability of clients to maintain cross-border financial operations amid evolving regulatory pressures.
On March 20, UBS reportedly issued formal letters to Russian customers requesting documentation to verify their location and residence status in Switzerland, while also cautioning about the risk of account blocking. The notices stated that customers must provide copies of proof of residency or residence permits by a stated deadline; failure to submit the required documents could lead to blocking of accounts beginning on a specified date in early May. This sequence of events reflects a broader pattern in which financial institutions seek to align client profiles with current sanctions regimes and national compliance standards, balancing due diligence with the need to maintain operational integrity and risk management discipline.