British banks block accounts of companies trading with Ukraine – Kommersant

Banks forcibly block the accounts of local companies that trade with Ukraine, the publication reports. Politico with reference to a letter from the British-Ukrainian Chamber of Commerce to the UK Treasury. According to the publication, this is due to the fears of banks, since trade with Ukraine can be used for money laundering.

“Conducting even one transaction with Ukraine can lead to the closure of accounts. Banks usually refuse to even open accounts if the company is considering any form of trade with Ukraine,” Politico quotes from a letter from the British-Ukrainian Chamber of Commerce. The appeal is currently being considered by the British Treasury.

“If trade from the UK with Ukraine is not possible for SMEs [малых и средних предприятий]the economies of the UK and Ukraine will suffer, which will damage Ukraine’s ability to finance its defense and make Ukraine even more dependent on foreign aid,” said the head of the British-Ukrainian Chamber of Commerce, Beit Thoms.

Politico notes that British banks are subject to the United Kingdom’s anti-corruption laws, which have long listed Ukraine as a “risk jurisdiction for customer transactions” in terms of anti-corruption measures.

Representatives of several British banks told reporters that credit institutions “by default do not prohibit trade with Ukraine”, but do not approve transactions until they are fully verified. Long delays in the process of verifying transactions and their approval in banks are associated with ongoing hostilities in Ukraine, due to which it is necessary to check transfers and payments more carefully.

Alexander Kislov