The UAE issues a license to the Russian MTS Bank
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The United Arab Emirates approved the issuance of a license to the Russian MTS Bank, which may increase the concerns of Western countries about the transformation of the UAE into a financial haven for Moscow.
It is reported Financial Times.
The central bank’s decision to issue a banking license to a financial institution that is not subject to Western sanctions is due to the growing demand for financial services from Russians in the UAE. Since the start of Russia’s full-scale war in Ukraine, tens of thousands of Russians have moved to the Persian Gulf country, mostly settling in Dubai.
Many of them complained about difficulties in opening bank accounts, especially corporate ones, with those creditors already working in the country. The Russian lender became the first foreign bank in recent years to receive a license in the UAE.
The US and European countries are concerned about the UAE’s financial dealings with Russia following the tightening of sanctions following a full-scale invasion. Brian Nelson, the U.S. Treasury Undersecretary for Terrorism and Financial Intelligence, emphasized the U.S. determination to aggressively implement its sanctions. “Less jurisdictions” risk losing access to developed markets by doing business with sanctioned entities.
At the same time, the UAE authorities call on financial institutions to comply with Western sanctions in order to reduce the risk of losing correspondent relations with American and European creditors.
One person familiar with MTS said the license would ease Russians’ access to bank accounts and open a new channel for money to flow into the UAE.
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