The largest bank in Cyprus – Bank Of Cyprus – has started sending notifications to customers – Russian citizens that their accounts will be closed. On this subject  writing  Forbes, citing Main Partner Trust, which provides comprehensive services to clients in Cyprus. This information was also confirmed on publication by a source in the banking sector.

In letters to customers, the bank informs that their accounts will be closed within two months from the date of notification, because user data does not comply with the rules of the “know your customer” procedure.

As explained in the Main Partner Trust, one of the reasons for these actions of the bank vis-à-vis Russian customers may be the tax resident status of Russia. In addition, the reason for closing an account may be the presence of income from a company under sanctions in Russia (for example, dividends or salaries for employees of sanctioned companies working remotely), as well as an “atypical” residence permit (“visitor” visa) or staying in Cyprus with a “digital nomad” visa.

Bank Of Cyprus is considered the largest in Cyprus. According to last year’s results, Russians (excluding Cypriot companies owned by Russian citizens) kept more than seven hundred thousand euros in bank deposits. This is six percent more than the previous year. Around 15% of all Russians living in Cyprus can have Bank Of Cyprus accounts.

Currently, the bank does not conduct operations in Russia and Ukraine, according to the report of the credit institution. It sold its Russian subsidiary, Uniastrum Bank, in 2015.

The US Treasury has an Office of Foreign Assets Control (OFAC) which oversees compliance with sanctions. It also maintains an SDN list. For the bank, committing to it means freezing assets in the United States and prohibiting settlements in dollars with any American counterparty. It is also forbidden to buy stocks and foreign currencies through the brokers of these banks.

In 2022, the US Department of Justice created the KleptoCapture group, which monitors compliance with sanctions imposed in response to the  Russian invasion of Ukraine.