US sanctions against Russian bank MTS for its branch in the UAE

The United States on Friday imposed a new package of economic sanctions against 250 Russian organizations and individuals, including a bank from Russia with a branch in the UAE, according to information published by the Bloomberg media network. "MTS Bank," which has branches in Moscow and Abu Dhabi, was one of the organizations subjected to the new U.S. sanctions.

"Bloomberg pointed out that Abu Dhabi granted MTS Bank a license to operate in its territory last year (2022), noting that thousands of Russians have come to the UAE since Russia's war with Ukraine began on Feb.

UAE Central Bank

The UAE Central Bank issued a statement saying that it had read the announcement of a new package of sanctions against the Russian Federation, including sanctions imposed on MTS Bank. The UAE Central Bank said it has issued a license to MTS Bank to open a branch in Abu Dhabi in accordance with established procedures for issuing licenses for foreign banks. The statement added that MTS Bank has contributed to "supporting legitimate trade between the two countries and serving the Russian community in the UAE under the supervision of the Central Bank." The UAE Central Bank confirmed that it had reviewed the "anti-money laundering and anti-terrorist financing policies for the branch, and checked the related electronic systems before the branch started operating in the UAE in accordance with the licensing requirements for banks in the UAE." In addition, it was noted that "due to the conditions of the country where the bank is located, the Central Bank monitors transactions related to trade finance above a certain threshold." The Central Bank confirmed that it is "currently exploring the available options regarding the position of the new bank and will make an appropriate decision in due course, taking into account past commitments to the branch".