Banks across the United Arab Emirates have sharply increased scrutiny of Russian-linked businesses, resulting in restrictions or account closures for roughly 30% of those companies, according to Ukrainian intelligence and regional media reports.
Financial institutions began the crackdown in July, reviewing more than 4,000 firms registered in the UAE. Many received formal notices limiting transactions, while others saw their accounts shut down entirely.
Banks cited multiple reasons for the actions, including failure to respond to inquiries, inconsistent paperwork, unexplained financial flows, and ties to sanctioned entities or countries flagged by the Financial Action Task Force (FATF).
The move comes amid international pressure on the UAE to enforce sanctions and avoid a return to the FATF’s “grey list.” In recent months, the U.S. Treasury has warned UAE banks that they could face penalties if they facilitate sanctions evasion, even when transactions occur outside U.S. jurisdiction.
Analysts note the restrictions are already disrupting sectors where Russian businesses have been heavily involved — including retail, IT, and manufacturing — as banks demand faster responses, stricter documentation, and proof of legitimate operations.
The UAE’s actions reflect a growing global effort to close financial loopholes supporting Russia, signaling tougher times ahead for companies trying to use the Gulf state as a trade and banking hub.
