London Daily

Focus on the big picture.
Thursday, Apr 02, 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
King Charles III Invited to Address Joint Session of U.S. Congress in Rare Diplomatic Honor
Debate Grows Over Whether Expanded North Sea Drilling Can Reduce UK Energy Bills
UK Faces Heightened Risk of Jet Fuel Shortages, Airline Chief Warns
UK Ends Police Investigations into Lawful Social Media Posts After Review Finds Overreach
Abramovich Moves to Establish Charity for Frozen Chelsea Sale Proceeds Amid UK Dispute
Starmer Reaffirms NATO Commitment While Responding to Trump’s Strategic Critique
UK Aid Reductions Raise Fears of Severe Human Impact Across Parts of Africa
UK Signals Renewed Push for EU Cooperation as Iran Conflict Reshapes Security Landscape
Bank of England Signals Caution as Bailey Advises Markets Against Expecting Rate Hikes
UK to Convene Global Coalition to Restore Shipping Through Strait of Hormuz
Trump Signals Possible NATO Reassessment, Emphasizes Stronger U.S. Strategic Autonomy
Australia Joins British-Led Efforts to Reopen Strait of Hormuz Amid Escalating Tensions
King Charles Plans US State Visit as UK Strengthens Ties with Trump Leadership
UK Regulator Launches Investigation Into Microsoft’s Business Software Practices
Kanye West Set for High-Profile Return to UK Stage at Wireless Festival
Trump Presses Europe to Strengthen Commitment as Iran Conflict Escalates
UK to Deploy Additional Troops to Middle East Amid Rising Regional Tensions
UK Authorities Face Claims of Heavy-Handed Measures in Monitoring Released Pro-Palestine Activists
Trump Calls on UK to Secure Its Own Energy as Iran Conflict Intensifies
Nigel Farage Declines Invitation to UK Conservative Conference Led by Liz Truss
Trump Warns Allies to Take Responsibility as Rift Deepens with UK and France Over Iran Conflict
How Britain’s Prime Minister Controls U.S. Bomber Access in Escalating Iran Conflict
Trump Urges Allies to Secure Their Own Oil Supplies as Hormuz Crisis Disrupts Global Energy
Russia Expels British Diplomat as UK Pushes Back Against Pressure
White House App Faces Scrutiny After Claims of Continuous User Location Tracking
BBC Faces Scrutiny Over Allegations of Paid Content Linked to Saudi Arabia
UK-France Coastal Patrol Agreement Nears Breakdown Amid Migration Pressures
UK Police Detain Pro-Palestine Activist Again Weeks After Bail Release
FTSE 100 Advances as Energy and Mining Shares Gain Amid Middle East Tensions
Eli Lilly Seeks UK Pricing Deal to Unlock Renewed Pharmaceutical Investment
Three Arrested in UK After Massive Cocaine Haul Discovered Hidden in Banana Shipment
UK Fuel Prices Poised for Further Surge Amid Global Energy Pressures
Apple Subsidiary Penalized by UK Authorities for Breach of Moscow Sanctions
Western Allies Intensify Coordinated Sanctions Strategy Against Russia
UK Lawmakers Face Criticism Over Renewed Push for Social Media Restrictions
Starmer Signals UK Crackdown on Addictive Social Media Features
Rising Costs Push One in Five UK Hospitality Businesses to the Brink of Closure
Man Arrested on Suspicion of Attempted Murder After Car Strikes Pedestrians in UK, Injuring Seven
Escalating Conflict Involving Iran Tightens Fiscal Pressures and Highlights UK Economic Vulnerabilities
UK Moves to Confront Russian ‘Shadow Fleet’ Operating in Its Waters
UK Housing Divide Deepens as Older Owners Hold Wealth While Under-30s Face Mounting Barriers
London Demonstration Calls on UK to Recognize Iranian Opposition’s Provisional Government
UK Green Party Vote on ‘Zionism is Racism’ Motion Collapses Amid Internal Disputes and Technical Failures
SNL UK Ignites Debate with Sharp Royal Satire Targeting Prince Andrew and Prince William
EU Proposes ‘Emergency Brake’ to Resolve Deadlock in UK Youth Mobility Talks
Thousands Rally in London to Oppose Rise of Far-Right Movements
Hong Kong Official Rejects Allegations of Surveillance Orders Targeting UK-Based Dissidents
PayPal Expands Cryptocurrency Services to Allow UK Users to Buy and Sell Bitcoin
UK Minister Challenges Reform Party’s ‘Pro-Family’ Agenda as Debate Intensifies
Concerns Grow Over Meningitis Risk Among UK Students Amid Warning Signs of New Outbreaks
×