London Daily

Focus on the big picture.
Monday, Mar 23, 2026

Banks tell Britain that curb on all Russian savers won't work

Banks tell Britain that curb on all Russian savers won't work

Banks in Britain have warned the government that a plan to ban all Russians from holding more than 50,000 pounds ($65,430) in their accounts is illegal and unworkable, five sources said.

When Russia invaded Ukraine the government said that "all Russians" would be banned from holding large deposits at UK banks, with Prime Minister Boris Johnson saying it was part of a strategy aimed at isolating Moscow.

There are currently more than 70,000 Russian-born nationals living in Britain, government estimates show, and London has long been one of the top destinations for Russian money in Europe, with many elite families settling in the capital.

The banking industry sources told Reuters they feared the British proposals on Russian deposits would break equality laws, which forbid discrimination on the basis of nationality, in the latest challenge to rolling out sanctions against Moscow.

"What they are proposing is illegal, there's no question about it," said one bank executive, who has held talks with the government on the plans. "This feels like a rushed announcement where the consequences haven't been thought through."

A British government spokesperson declined to comment.

Britain is implementing what the government has called the biggest-ever raft of sanctions against Russia, including asset freezes and travel bans on hundreds of individuals and entities it has accused of propping up President Vladimir Putin.

But some of those measures, such as the blanket ban on wealthy Russian savers, are still at the drawing board, fuelling doubts over the effectiveness of the UK's attempts to pressure Moscow and loosen connections to Russia that have led some to nickname its capital "Londongrad".

The bank deposit plan is the only measure that targets all Russians in Britain, not just those being directly sanctioned.

The banking sources said they have asked for reassurances that they will not be sued if they enforce the curbs, seen as one of the most far-reaching sanctions tabled since Russia's Feb. 24 invasion, the sources said.

Such reassurances, however, may not be possible without a change in the law and more than a month after the caps were proposed there have been no announcements about how they will work, including whether dual nationals would be hit or how multiple deposits across many banks would be handled.

'NO LONGER WELCOME'


While the government has vowed to crack down on illicit Russian wealth, an increasing number of Russians who have not been sanctioned are concerned they will be swept up too.

One Russian national, who has worked in London for 16 years and is not the target of sanctions, said he would consider leaving if the plans were implemented.

"If this happens then the message is very clear that we are no longer welcome," he said on condition of anonymity.

European Union regulators have also told some banks in the bloc to scrutinise transactions by all Russian and Belarusian clients, including EU residents, to ensure that they are not used to circumvent Western sanctions.

Russia says it launched a "special military operation" to disarm Ukraine, while Western countries say that Moscow's aim was to swiftly topple the government in Kyiv.

One of the banking sources, who also asked not to be named, said talks were ongoing, but government officials had so far failed to provide any details on how to implement the bans.

He said he was worried the restrictions could put his bank in breach of laws such as the Human Rights Act, which could lead to lawsuits and the possibility of compensation payouts.

Bankers said they are willing to play their part in tackling oligarchs sympathetic to Putin but want the government to identify those people first.

All of the bank sources who spoke to Reuters said the plan would require significant updates to technology, account opening processes and may be too complex to implement.

Although customers are required to disclose residency when opening an account, this does not usually include providing data on nationality, one said.

This means banks would need to ask all customers holding in excess of 50,000 pounds to supply details of their nationality in order to identify Russian customers.

"We are obviously willing to work with the government to target oligarchs aligned with Putin," the source said. "But we have reservations about how effective this would be in tackling those actors, whilst hurting the interests of innocent parties."

Newsletter

Related Articles

0:00
0:00
Close
Duchess of Sussex Secures ‘As Ever’ Trademark Rights in Australia Ahead of High-Profile Visit
UK Reaffirms Security as Officials Reject Claims of Immediate Iranian Missile Threat
Rising Middle East Tensions Spark ‘Trumpflation’ Debate Over Impact on UK Households
UK Minister Says No Evidence Iran Can Strike Europe Despite Heightened Warnings
British-Iranians Voice Safety Concerns to Authorities as Regional Conflict Intensifies
Confirmed Meningitis Cases Linked to Kent Outbreak Revised Down to Twenty
UK Government Sees No Evidence Iran Can Strike London Amid Rising Regional Tensions
Debate Grows Over Recognition of Indigenous Cultural Icons in the United Kingdom
Iran Missile Launch Toward Diego Garcia Raises Questions After Failed Strike on US–UK Base
Donald Trump Amplifies Viral Satirical Clip Highlighting UK–US Political Dynamics
UK Satirical Show Draws Attention with Sketch Referencing Trump and Prince Andrew
Meghan Markle’s Possible UK Return Sparks Renewed Attention on Sussex Role
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
Northern Lights Expected Over UK Skies Tonight Amid Strong Solar Activity
UK Condemns Iran Missile Strike and Warns Against Threats to British Personnel
UK Warns of Global Flight Disruptions as Iran Conflict Escalates Under Trump’s Leadership
UK Condemns Iran After Missile Strike Targets Strategic Diego Garcia Base
Deadly Meningitis Outbreak in UK Reinforces Urgency of Vaccination Campaigns
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
UK Rules Out Cyprus Base Role in Joint US Self-Defence Framework
UK Ends Hereditary Peerage Rights in Parliament in Historic Constitutional Reform
Lord Walney Warns of Expanding Iranian Influence Networks Within the United Kingdom
Iranian National Among Two Arrested After Attempt to Access UK Nuclear Submarine Base
Deregulation, Artificial Intelligence, and Fraud Laws Reshape UK Financial Services Landscape
UK Considers Lower Speed Limits to Reduce Fuel Use Amid Escalating Energy Crisis
UK Borrowing Costs Surge to Post-Crisis High as Markets React to Inflation and War Risks
UK Government Prepares Emergency Economic Measures as Iran Conflict Fuels Financial Risks
Meningitis B Outbreak in the UK Raises Urgent Health Warnings as Cases Surge
Iran Issues Stark Warning to Britain Over US Base Access Amid Expanding Conflict
United Kingdom Authorizes US Strikes from British Bases as Iran Threatens Key Shipping Routes
Reform UK Suspends Scottish Candidate Following Financial Misconduct Allegations
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
UK and Nigeria Reach Agreement to Accelerate Return of Irregular Migrants
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
UK Plans 50% Steel Tariffs in Bold Move to Protect Domestic Industry
Iran Conflict Sends Shockwaves Through UK Economy as Energy Costs and Trade Risks Surge
UK Health Officials Warn Kent Meningitis Outbreak Still Active as Cases Continue to Rise
UK Climate Progress Faces Scrutiny Over Reliance on Carbon Accounting Methods
UK Deploys Advisers to United States to Shape Plan for Reopening Strait of Hormuz
Amazon Bets on AI-Driven Alexa Upgrade to Revive UK Smart Speaker Market
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
×