London Daily

Focus on the big picture.
Friday, Sep 11, 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
Buckingham Palace Says Prince Harry and Meghan Will Not Resume Official Royal Duties
UK Treasury Faces Calls to Scrap £100,000 Childcare Support Threshold
Trades Union Congress Urges Labour Government to Rewrite Migration Policy
Riot Police Deployed After Anti-Migrant Protests Turn Violent in Portsmouth
UK Considers Replacing Some Disability Cash Payments With Direct Services
JPMorgan’s Jamie Dimon Warns UK Chancellor Against Higher Banking Taxes
UK Announces New Sanctions Targeting Israeli Settlements in West Bank
Metropolitan Police Investigate Alleged Illegal Donations to Reform UK
UK Charges Wiltshire Man With Assisting Russian Intelligence
UK Orders Urgent Review After Air Traffic Failure Cancels More Than 2,000 Flights
Merz Rebukes AfD Expansion in Saxony-Anhalt
King Charles Confirms Prince Harry and Meghan Will Remain Private Citizens
Labour Selects Former Child Refugee for By-Election in Keir Starmer’s Former Seat
Foreign Private Equity Accelerates Takeovers of London-Listed Industrial Companies
NHS Maternity Care Faces Scrutiny Over Support for Mothers After Caesarean Births
BBC Warns Staff Strikes Are Likely Amid Job Cuts and Programme Cancellations
English Housing Affordability Improves to Best Level in More Than a Decade
UK Health Commission Proposes Framework for Wider AI Adoption Across NHS
Labour Faces Pressure for Wealth Tax Ahead of Autumn Budget
Metropolitan Police Open Criminal Investigation Into Alleged Foreign Donations to Reform UK
UK Police Deploy Riot Officers After Anti-Immigration Unrest in Portsmouth and Dover
UK Defends Sanctions on Israeli Settlements Despite Diplomatic Retaliation
UK Air Traffic Control Failure Cancels More Than 1,000 Flights and Disrupts 65,000 Passengers
Compass Urges £10 Million Wealth Tax and Public Ownership Ahead of UK Autumn Budget
UK Government’s Devolution Plans Face House of Lords Scrutiny
Maldives Seeks New Chagos Sovereignty Talks With UK Prime Minister Andy Burnham
UK Airports Face Continuing Disruption After National Air Traffic Control Failure
UK Bans Imports From Israeli Settlements and Expands Sanctions on Iran
British Chambers of Commerce Forecasts UK Growth of 1% as Investment Remains Weak
UK Suspends Local Government Reorganisation Decisions and Cancels Planned Shadow Authority Polls
UK Parliament Opens Inquiry Into Gaps in Climate Change Preparedness
Andy Burnham and Xi Jinping Hold Talks on Trade, Security and British Consular Cases
UK Joins France, Canada and Other Nations in Measures Against Israeli West Bank Settlements
UK Announces New Sanctions Targeting Iranian Nuclear and Military Networks
British Chambers of Commerce Calls for Business Rate Reform and Productivity Support
UK Farmers Warn Dry Summer Could Reduce Crop Yields and Push Up Food Prices
UK Rail Networks Hit by Widespread Delays After Major Signalling Failures
Matt Clifford Resigns as ARIA Chair After Conflict-of-Interest Scrutiny
UK and France Say Joint Border Operations Have Prevented More Than 48,000 Irregular Channel Crossings
UK Core Inflation Remains Above Expectations as Utility and Commodity Costs Stay Elevated
Jaguar Land Rover Considers Up to 4,000 UK Job Cuts Amid Automotive Industry Pressure
UK Government Pauses Local Authority Reorganisation for Legal Review
UK Public Borrowing Reaches £1.8 Billion in July, Adding Pressure Before Autumn Budget
Chancellor John Healey Puts Regional Devolution and Fiscal Discipline at Heart of UK Growth Plan
Counter-Terrorism Police Lead Salford Investigation After Two Teenagers Charged
UK Rejects Financial Reparations for Transatlantic Slavery
UK and Egypt Step Up Diplomacy Over Escalating West Bank Tensions
UK Pauses Council Reorganisation Across Four English Counties
Jaguar Land Rover Plans 4,000 Job Cuts in Major UK Restructuring
UK Unveils Planning and Regulatory Overhaul to Speed Infrastructure and Economic Growth
×