Swiss bank Julius Baer, which actively attracted clients in Russia before the war, has announced that it will stop working with them. It is warning its clients permanently residing in Russia (domiciled) about the forthcoming closure of their accounts, consulting firm Main Partner Trust said.
All business relations with them will be terminated no later than December 31, Forbes quoted a letter from Julius Baer to one of its clients as saying: “Due to current circumstances and evolving constraints, the bank can no longer offer you suitable and comprehensive asset management services that meet our standards”. On August 1, the bank will introduce several additional fees: for example, a quarterly service fee of 2,250 francs (approximately $2590), and will terminate all agreements and contracts (e.g., loan agreements) as of September 30, after which the bank will provide only limited services.
In the spring, Swiss banks warned clients from Russia that they would close the accounts of those who pay taxes to the Russian budget, and some taxpayers even had their accounts blocked.
“The circle is narrowing! Switzerland is only one of its links”, writes international financial consultant Isaac Becker, urging to “think about how to arrange your life with minimal risk of being thrown out with your ‘suitcase’ from yet another financial institution”. But he gives no advice.
Another jurisdiction popular with wealthy Russians and a frequent place for relocation – the United Arab Emirates (UAE) – is also tightening the terms of financial services for Russians, even banks in neighboring countries regularly introduce various restrictions.