UAE Tightens Regulatory Grip on Russian Companies’ Finances
In July this year, financial institutions in the United Arab Emirates tightened their supervision of Russian companies' activities, The Gaze reports, citing the Foreign Intelligence Service of Ukraine.
Approximately 30% of Russian companies received notifications about restrictions on financial transactions or the closure of their bank accounts.
The main reasons for these decisions were failure to respond to bank inquiries or late responses, errors in documents, discrepancies between financial flows and declared activities, as well as ties to countries on the FATF blacklist or to individuals and organizations subject to international sanctions, and other similar factors.
Thorough checks of the financial activities of Russian companies in the United Arab Emirates began back in February 2024. This was in response to sanctions imposed by the United Kingdom against Emirati companies involved in circumventing restrictions imposed on Russia.
Subsequently, control and supervision were significantly strengthened, especially after the introduction of the 18th package of European Union sanctions that for the first time included Emirati entities associated with Russia. These measures led to more frequent checks and increased scrutiny of the financial transactions of such companies, reflecting the international community's growing concern about compliance with sanctions regimes.
“Financial institutions in the UAE do not want to be blacklisted by the FATF again because of Russia, so they are showing their willingness to comply with the global sanctions regime,” the statement reads.
Read more on The Gaze: New Sanctions against Russia – How they Reduce its Ability to Wage War