Home featured MTS Bank’s UAE Branch to Shut Down Under Central Bank Supervision

MTS Bank’s UAE Branch to Shut Down Under Central Bank Supervision

by Uganda Times

The central bank of the United Arab Emirates (UAE) announced on Friday that it would revoke the license it granted to MTS Bank of Russia last year. The bank was placed under British and U.S. sanctions in February, prompting the UAE central bank’s decision.

The UAE branch of MTS Bank, which operates under a license issued in Abu Dhabi, will be closed down over the next six months under the central bank’s supervision. During this process, the branch will only be permitted to clear prior obligations and not be authorised to open new accounts or conduct transactions.

The UAE has maintained good relations with Russia despite Western pressure to isolate the country over its invasion of Ukraine, but it has not imposed global sanctions on Moscow. Many Russians have sought refuge in the UAE since the start of the Ukraine conflict.

The MTS Bank is a fintech subsidiary of Russia’s largest mobile operator, Mobile TeleSystems, and its parent company, Sistema, holds a 42.09% stake. The bank was one of 200 entities and individuals subjected to sanctions in February on the first anniversary of Russia’s invasion of Ukraine.

Vladimir Yevtushenkov, a Russian billionaire, relinquished formal shareholder control of Sistema last year after being sanctioned by Britain, transferring a 10% stake to his son.

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