The largest bank in Cyprus is massively closing the accounts of Russians

Russian citizens face increasing problems with banking services in Cyprus, the largest "offshore" for Russian capital, where $212 billion of Russian origin was located before the war, writes moscowtimes.ru.

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Bank of Cyprus — the largest in the country — has started sending a message to clients from Russia informing them of the closure of their accounts, BFM reports.

"Letters of happiness" from the bank are tax residents of the Russian Federation, those who receive income from the sanctioned business in Russia, as well as holders of type F residence permits — that is, they received it as a result of buying real estate on the island.

Notices about termination of service are also sent to Russians who are in Cyprus on a tourist visa. The conditions are the same for everyone: two months are allotted for the account closing procedure.

"The trend is from above. (And) it won't get better in the near future," says portfolio manager Alexander Krapyvko: the Cypriot president regularly meets with the US ambassador, and the United States insists that the "loopholes" for circumventing sanctions against Russia be closed.

"The history of Cyprus is not unique," reminds Oleg Abelev, head of the analytical department of Rycom Trust. Last week, Emirates NBD (ENBD), the second-largest bank in the United Arab Emirates by assets, announced the blocking of Russian accounts.

The bank intends to introduce separate, segregated accounts for Russian clients, where investment income will be credited. At the same time, it will be impossible to withdraw money from such an account. "Something similar, it is quite possible, will be in Cyprus as well, the same algorithm of actions. In order to withdraw money to a separate account, a Russian citizen will need to prove the origin of these funds, that they were not obtained from a sanctioned business," says Abelev.

According to the Central Bank of the Russian Federation, by the end of 2023, Russians held $94,3 billion in foreign accounts. Against the backdrop of the war, mass mobilization, and a wave of emigration that took up to a million people out of the country, over the past year, citizens of the Russian Federation withdrew a record $63,6 billion from the country.

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