Several Swiss financial institutions have begun to close the accounts of individuals who hold dual citizenship, specifically Swiss and Russian passports. This development was highlighted in an interview with Roman Kudinov, the managing partner at the law firm Leolex, and later repeated by coverage in Vedomosti. The trend signals a broader cautious stance among Swiss banks toward clients with intertwined Swiss and Russian ties, particularly where regulatory scrutiny and sanctions regimes intersect with cross-border tax and income dynamics.
Meanwhile, Ekaterina Popova, a partner at the ITSWM group, noted that this banking preference or restriction is observable within Switzerland as well. Her corroboration underscores the perception that dual citizenship can complicate access to traditional banking services in some Swiss institutions, prompting affected clients to reassess their banking arrangements.
Kudinov observed that a significant portion of the affected clientele includes individuals who hold Swiss citizenship or residency and are taxed in Switzerland. The issue arises when these clients do not have income-generating activities in Russia, yet their tax obligations in the two jurisdictions become a focal point in the regulatory dialogue. In several reported cases, clients have continued to meet Swiss tax requirements, even as their income streams may originate elsewhere, raising questions about tax reporting and residency rules across borders. These nuances make the situation particularly delicate for lawyers advising clients on cross-border wealth and compliance.
In response to the closures, the law office mentioned by Kudinov is exploring legal avenues for affected clients. Potential claims could center on arguments of oppression or discrimination within banking practices, alongside disputes over due process and transparency in the decision-making processes of the banks involved. UBS declined to comment when approached for input by Vedomosti, adding a layer of uncertainty about the banks’ internal criteria and risk assessments.
Beyond Switzerland, the banking friction previously observed with Russian clients has echoes in Turkey. Analysts have discussed the possibility of establishing banks with full Russian capital participation to continue facilitating payments through the Mir system. This approach would aim to preserve an alternative financial channel for Russian nationals and counterparties, potentially mitigating the impact of Western sanctions on cross-border banking operations. An analyst with the Turkish finance sector, Engin Özer, noted that such a move could help sustain financial links between Russia and Turkey in the face of geopolitical shifts.
Historically, the Russian central bank and regulatory authorities have asserted the right to withhold certain sanctions-sensitive information from public disclosure. This framework has influenced how banks navigate sanctions compliance, customer due diligence, and the balance between transparency and regulatory confidentiality. The current climate amplifies the need for clarity in how banks interpret sanctions rules, assess political risk, and communicate with clients who may be affected by evolving policies.
For clients holding dual Swiss-Russian citizenship, the evolving landscape invites a careful review of banking options, jurisdictional tax obligations, and long-term financial planning. Legal counsel emphasizes that keeping thorough records of income streams, residency status, and tax filings across both jurisdictions is essential. As banks tighten controls or reassess risk profiles, clients may explore diversified banking relationships, consider jurisdictions with favorable cross-border tax treaties, and examine service models that align with anti-money-laundering and sanctions screening requirements. The overarching goal remains to secure stable access to banking services while ensuring compliance with international regulations.
Observers suggest that this is less a call to abandon one country for another and more a reminder that wealth management in a globalized system requires proactive, informed planning. Clients are advised to engage experienced legal and financial advisors who understand the intersection of tax law, residency, and sanctions regimes. Transparency with banks about dual citizenship, income structure, and anticipated cross-border activity can help in negotiating terms and identifying compliant pathways for maintaining banking relationships across jurisdictions.