Saudi Press

Saudi Arabia and the world
Sunday, Feb 08, 2026

Banks tell Britain that curb on all Russian savers won't work

Banks tell Britain that curb on all Russian savers won't work

Banks in Britain have warned the government that a plan to ban all Russians from holding more than 50,000 pounds ($65,430) in their accounts is illegal and unworkable, five sources said.

When Russia invaded Ukraine the government said that "all Russians" would be banned from holding large deposits at UK banks, with Prime Minister Boris Johnson saying it was part of a strategy aimed at isolating Moscow.

There are currently more than 70,000 Russian-born nationals living in Britain, government estimates show, and London has long been one of the top destinations for Russian money in Europe, with many elite families settling in the capital.

The banking industry sources told Reuters they feared the British proposals on Russian deposits would break equality laws, which forbid discrimination on the basis of nationality, in the latest challenge to rolling out sanctions against Moscow.

"What they are proposing is illegal, there's no question about it," said one bank executive, who has held talks with the government on the plans. "This feels like a rushed announcement where the consequences haven't been thought through."

A British government spokesperson declined to comment.

Britain is implementing what the government has called the biggest-ever raft of sanctions against Russia, including asset freezes and travel bans on hundreds of individuals and entities it has accused of propping up President Vladimir Putin.

But some of those measures, such as the blanket ban on wealthy Russian savers, are still at the drawing board, fuelling doubts over the effectiveness of the UK's attempts to pressure Moscow and loosen connections to Russia that have led some to nickname its capital "Londongrad".

The bank deposit plan is the only measure that targets all Russians in Britain, not just those being directly sanctioned.

The banking sources said they have asked for reassurances that they will not be sued if they enforce the curbs, seen as one of the most far-reaching sanctions tabled since Russia's Feb. 24 invasion, the sources said.

Such reassurances, however, may not be possible without a change in the law and more than a month after the caps were proposed there have been no announcements about how they will work, including whether dual nationals would be hit or how multiple deposits across many banks would be handled.

'NO LONGER WELCOME'


While the government has vowed to crack down on illicit Russian wealth, an increasing number of Russians who have not been sanctioned are concerned they will be swept up too.

One Russian national, who has worked in London for 16 years and is not the target of sanctions, said he would consider leaving if the plans were implemented.

"If this happens then the message is very clear that we are no longer welcome," he said on condition of anonymity.

European Union regulators have also told some banks in the bloc to scrutinise transactions by all Russian and Belarusian clients, including EU residents, to ensure that they are not used to circumvent Western sanctions.

Russia says it launched a "special military operation" to disarm Ukraine, while Western countries say that Moscow's aim was to swiftly topple the government in Kyiv.

One of the banking sources, who also asked not to be named, said talks were ongoing, but government officials had so far failed to provide any details on how to implement the bans.

He said he was worried the restrictions could put his bank in breach of laws such as the Human Rights Act, which could lead to lawsuits and the possibility of compensation payouts.

Bankers said they are willing to play their part in tackling oligarchs sympathetic to Putin but want the government to identify those people first.

All of the bank sources who spoke to Reuters said the plan would require significant updates to technology, account opening processes and may be too complex to implement.

Although customers are required to disclose residency when opening an account, this does not usually include providing data on nationality, one said.

This means banks would need to ask all customers holding in excess of 50,000 pounds to supply details of their nationality in order to identify Russian customers.

"We are obviously willing to work with the government to target oligarchs aligned with Putin," the source said. "But we have reservations about how effective this would be in tackling those actors, whilst hurting the interests of innocent parties."

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Syria and Saudi Arabia Seal Multibillion-Dollar Investment Agreements to Drive Post-War Economic Reconstruction
Apple iPhone Lockdown Mode blocks FBI data access in journalist device seizure
Foreign Governments and Corporations Spend Millions with Trump-Linked Lobbying Firm in Washington
KPMG Urges Auditor to Relay AI Cost Savings
Saudi Arabia Quietly Allows Wealthy Foreign Residents to Buy Alcohol, Signalling Policy Shift
US and Iran to Begin Nuclear Talks in Oman
China unveils plans for a 'Death Star' capable of launching missile strikes from space
Investigation Launched at Winter Olympics Over Ski Jumpers Injecting Hyaluronic Acid
U.S. State Department Issues Urgent Travel Warning for Citizens to Leave Iran Immediately
Wall Street Erases All Gains of 2026; Bitcoin Plummets 14% to $63,000
Eighty-one-year-old man in the United States fatally shoots Uber driver after scam threat
German Chancellor Friedrich Merz Begins Strategic Gulf Tour with Saudi Arabia Visit
Dubai Awards Tunnel Contract for Dubai Loop as Boring Company Plans Pilot Network
Five Key Takeaways From President Erdoğan’s Strategic Visit to Saudi Arabia
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
Erdoğan’s Saudi Arabia Visit Focuses on Trade, Investment and Strategic Cooperation
Germany and Saudi Arabia Move to Deepen Energy Cooperation Amid Global Transition
Saudi Aviation Records Historic Passenger Traffic in 2025 and Sets Sights on Further Growth in 2026
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Global Shifts in War, Trade, Energy and Security Mark Major International Developments
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Federal Reserve Holds Interest Rate at 3.75% as Powell Faces DOJ Criminal Investigation During 2026 Decision
Putin’s Four-Year Ukraine Invasion Cost: Russia’s Mass Casualty Attrition and the Donbas Security-Guarantee Tradeoff
Saudi Crown Prince Tells Iranian President: Kingdom Will Not Host Attacks Against Iran
U.S. Central Command Announces Regional Air Exercise as Iran Unveils Drone Carrier Footage
Trump Defends Saudi Crown Prince in Heated Exchange After Reporter Questions Khashoggi Murder and 9/11 Links
Saudi Stocks Rally as Kingdom Prepares to Fully Open Capital Market to Global Investors
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
Saudi Arabia scales back Neom as The Line is redesigned and Trojena downsized
Saudi Industrial Group Completes One Point Three Billion Dollar Acquisition of South Africa’s Barloworld
Saudi-Backed LIV Golf Confirms Return to Trump National Bedminster for 2026 Season
Gold Jumps More Than 8% in a Week as the Dollar Slides Amid Greenland Tariff Dispute
Boston Dynamics Atlas humanoid robot and LG CLOiD home robot: the platform lock-in fight to control Physical AI
United States under President Donald Trump completes withdrawal from the World Health Organization: health sovereignty versus global outbreak early-warning access
Trump Administration’s Iran Military Buildup and Sanctions Campaign Puts Deterrence Credibility on the Line
Tech Brief: AI Compute, Chips, and Platform Power Moves Driving Today’s Market Narrative
NATO’s Stress Test Under Trump: Alliance Credibility, Burden-Sharing, and the Fight Over Strategic Territory
Saudi Arabia’s Careful Balancing Act in Relations with Israel Amid Regional and Domestic Pressures
Greenland, Gaza, and Global Leverage: Today’s 10 Power Stories Shaping Markets and Security
America’s Venezuela Oil Grip Meets China’s Demand: Market Power, Legal Shockwaves, and the New Rules of Energy Leverage
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
Prince William to Make Official Visit to Saudi Arabia in February
Saudi Arabia Advances Ambitious Artificial River Mega-Project to Transform Water Security
Saudi Crown Prince and Syrian President Discuss Stabilisation, Reconstruction and Regional Ties in Riyadh Talks
Mohammed bin Salman Confronts the ‘Iranian Moment’ as Saudi Leadership Faces Regional Test
Cybercrime, Inc.: When Crime Becomes an Economy. How the World Accidentally Built a Twenty-Trillion-Dollar Criminal Economy
Strategic Restraint, Credible Force, and the Discipline of Power
Donald Trump Organization Unveils Championship Golf Course and Luxury Resort Project in Saudi Arabia
Inside Diriyah: Saudi Arabia’s $63.2 Billion Vision to Transform Its Historic Heart into a Global Tourism Powerhouse
×