The Bank of Cyprus closing Russians investors accounts
The Bank of Cyprus has reportedly begun the process of closing accounts belonging to its clients who are Russian citizens. According to Forbes magazine, which cited information from Main Partner Trust, a financial services company in Cyprus, the bank has started sending letters to its Russian customers notifying them of the closure. The letters explain that the accounts will be closed within two months from the date of notification due to the user’s data not meeting the regulations of the “know your customer” procedure.
The director of Main Partner Trust, Alyona Sakharova, confirmed the news, stating that the bank began sending out the letters last week. It is not yet clear how many Russian citizens are affected by the account closures. However, one of the reasons for the bank’s actions may be related to the status of its Russian customers as resident taxpayers in Russia.
This move by the Bank of Cyprus may have implications for Russian investors looking to invest in the country. Many of them may now be considering moving their investments to the North Cyprus property market, as a result of the account closures. The closure of accounts may also have wider implications for Russian businesses operating in Cyprus, who may now be forced to seek alternative banking solutions.