The Central Bank of the United Arab Emirates (UAE) revokes the license to operate MTS Bank. All transactions in the local branch of the bank will be curtailed within a month, after which it will be liquidated.
The reason is that in February MTS Bank came under US and UK sanctions, writes Reuters. “The decision was made after considering the available options for the new status of MTS Bank and taking into account the sanctions risks associated with the bank,” the UAE Central Bank said in a statement.
During the branch liquidation process, no new accounts or transactions will be allowed to open. The only exception will be the repayment of obligations, for which he is allowed to use the payment systems of the Central Bank.
Despite the fact that the UAE has not imposed any sanctions against Russia and is on “friendly” relations with the Kremlin, the country may face secondary Western sanctions while facilitating sanctioned Russian businesses. At the same time, Russians continue to actively seek business asylum in this country.
MTS Bank is a fintech division of Mobile TeleSystems (MTS). It, in turn, is 42.09% owned by the Sistema conglomerate, which is controlled by oligarch Vladimir Yevtushenkov. After the imposition of UK sanctions against the billionaire, he renounced the formal ownership of Sistema’s shares and partially transferred them to his son.
As GLOBAL HAPPENINGS reported, MTS Bank came under US sanctions as part of a package of restrictions dedicated to the anniversary of Russia’s full-scale invasion of Ukraine. The United Kingdom made a similar decision on February 24.
Source: Obozrevatel
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