ECB puts Russians under scanner

In the aftermath of Russia’s unprovoked invasion of Ukraine, the comprehensive set of sanctions had a widespread impact over the banking industry. Recently, the ECB has asked banks to pay extra attention to all transactions made by Russian and Belarusian clients, including EU residents, in an effort to make sure that they don’t try to fend off Western sanctions. The regulators are concerned that if banks channel clients' money on behalf of sanctioned Russian individuals, they could encounter hefty fines and could face reputational risks, thus harming the European banking ecosystem.

In this alert you will read more about the implications of the wider set of sanctions and their associated risks for the banks.