In an effort to comply with European sanctions against Russia due to its attack on Ukraine, a few Swiss financial institutions have overshot the mark.
UBS, Migros Bank, and Postfinance are among Swiss financial institutions that have falsely closed accounts belonging to non-sanctioned individuals and companies, a «Blick» (in German, behind paywall) report said, citing comments by Guy Mettan, president of the Swiss-Russian & CIS Chamber of Commerce.
«I know a company whose accounts were blocked from one day to the next by UBS without the slightest justification and which was therefore no longer able to pay its Swiss suppliers,» Mettan told Swiss newswire AWP, adding the UBS case was not an isolated one.
Switzerland’s largest bank responded to AWP that it was «working with diligence and dedication to comply with all requirements, in particular the sanctions, and to manage their possible consequences,» the report said.
Swiss Bankers Association
The Swiss Bankers Association has not issued any special recommendations to its members, as it did not see itself in a position to comment on the development of Swiss banks' business relations with Russian clients, the report said.
Postfinance told AWP that all relationships with customers living in Russia had been terminated but that Russian nationals residing in Switzerland could keep their accounts provided they are not subject to sanctions and were in possession of a valid residence permit.
Russian Oligarchs
Since Switzerland adopted European sanctions imposed on Russia in February, Swiss banks and financial institutions are prohibited from accepting new deposits exceeding 100,000 Swiss francs ($105,800) from Russian citizens, natural persons resident in Russia, and companies or organizations established there. They have also frozen billions of francs worth of assets belonging to Russian sanctioned oligarchs.
