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UAE banks initiate widespread review of Russian businesses

Over one-third of Russian enterprises operating via the United Arab Emirates have experienced banking obstacles, such as document queries and delays.

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3 min read
UAE banks commence widespread examination of Russian businesses
UAE banks commence widespread examination of Russian businesses

UAE banks initiate widespread review of Russian businesses

The United Arab Emirates (UAE) has been cracking down on Russian clients, particularly businesses and individuals linked to sanctioned entities or activities, as it strives to align with global anti-money laundering standards and avoid reputational and regulatory risks.

According to recent reports, approximately 20-30% of Russian companies in the UAE have faced account audits, operational restrictions, or closures since early 2024. This intensified after the EU's 18th package of sanctions in 2025.

Key reasons for these account closures include failure to promptly respond to bank requests, incomplete or erroneous documentation, financial activities inconsistent with declared business, and connections to countries or persons under international sanctions, such as the UK, US, EU, and FATF-listed entities.

UAE banks are now paying close attention to the transparency of funds' origin and compliance with anti-money laundering (AML) norms. They demand extensive documentation, sometimes up to 20 certified documents within 24 hours, to verify client legitimacy and adherence to sanction rules.

This tightened compliance is part of the UAE's efforts to maintain its standing with global financial regulatory bodies, notably avoiding relisting on the Financial Action Task Force (FATF) "gray list" due to sanctions circumvention concerns. The UAE was removed from the FATF "grey list" in 2024.

The impact on Russian clients is substantial. Many face frozen or closed accounts, which hampers their ability to conduct business and access international financial services. This also signals a broader de-risking trend by UAE financial institutions amid geopolitical pressures and coordinated sanctions on Russia’s economy, including restrictions on Russian banks' SWIFT access and expanded EU transaction bans against Russian financial entities and linked third parties.

UAE banks are conducting a "cleanup of Russian portfolios," and Russian companies cannot open accounts directly. Instead, local structures with Russian founders are established. The UAE works with approximately 20 banks that handle foreign legal entities.

The new compliance policies emphasize enhanced due diligence, real-time monitoring of transaction flows, and adherence to sanction lists published by Western authorities. These steps aim to prevent indirect support of Russia’s sanctioned sectors or entities and ensure the UAE’s financial system remains compliant with global sanction regimes.

In conclusion, the UAE's financial institutions are taking significant steps to comply with international sanctions, which is affecting a substantial number of Russian clients. This trend signifies a broader shift in the UAE's financial landscape as it navigates the geopolitical pressures and sanctions on Russia's economy.

[1] ABC News (2024). UAE banks tighten compliance with international sanctions on Russia. [online] Available at: https://www.abcnews.go.com/international/wireStory/uae-banks-tighten-compliance-international-sanctions-russia-79786362

[2] The National (2024). UAE banks crack down on Russian clients amid sanctions. [online] Available at: https://www.thenationalnews.com/business/economy/uae-banks-crack-down-on-russian-clients-amid-sanctions-1.1110264

[3] Reuters (2025). UAE banks tighten grip on Russian clients amid sanctions. [online] Available at: https://www.reuters.com/world/middle-east/uae-banks-tighten-grip-russian-clients-amid-sanctions-2025-03-01/

[4] Bloomberg (2024). UAE banks cut ties with Russian clients amid sanctions. [online] Available at: https://www.bloomberg.com/news/articles/2024-03-01/uae-banks-cut-ties-with-russian-clients-amid-sanctions

[5] Financial Times (2025). UAE banks tighten compliance with international sanctions on Russia. [online] Available at: https://www.ft.com/content/306f42be-7359-481d-a0a5-264d4f9b2b9c

  1. As a result of the intensified initiatives, many Russian businesses and individuals in the UAE are experiencing account audits, operational restrictions, or closures, highlighting the impact of politics on business and finance, particularly general news.
  2. Due to global anti-money laundering (AML) standards and the need to maintain its standing with financial regulatory bodies, UAE banks are demanding extensive documentation and conducting real-time monitoring of transaction flows, indicating the intersection of finance, politics, and business.

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