UK banks forcibly closing accounts of British firms doing business in Ukraine: Report

Banks in UK are forcibly closing accounts of British firms felicitating tre with Ukraine due to money laundering and bribery as country is engaged in war with neighbouring Russia. Business leers have been warned against doing business in Kyiv, reby torpedoing wider efforts to boost war-ravaged Ukraine's economy. Concerns are also emerging due to Western sanctions against Russia. 

In a letter to UK's Treasury Minister Andrew Griffith, British-Ukrainian Chamber of Commerce (BUCC) Co-Chair Bate Toms said that Brits are increasingly “afraid to tre with Ukraine from UK” as y risk being debated, Politico newspaper reported. document, dated July 26, was also copied to UK Business and Tre Minister Nusrat Ghani.

"BUCC has received multiple complaints from firms who have h bank accounts closed — or ir attempts to set up accounts rejected — because of dealings in Ukraine," letter said, as per newspaper. Banks also insist that British trers must fulfill ir legal and regulatory obligations. y also warn about strict compliance with Western sanctions on Russia whilst carrying out tre activities. 

“Conducting even one Ukrainian transaction can le to an account being closed," Toms said in document. "UK banks generally refuse to open accounts if any Ukrainian tre is contemplated," he ded. 

Complications for UK bank for businesses in non-government-controlled regions in Ukraine

re are complications with respect to business in  non-government-controlled regions in Ukraine that are now occupied by Russia. For instance, some procedures for banks such as processing checks take longer time and are more complex now than  territories fall under Russia's control.

Tom has urged British government to look into  recently launched review of de-banking of Politically Exposed Persons (PEPs). Many PEPs can still hold positions that can be abused for purpose of laundering illicit funds, and or financial offences such as corruption or bribery. It was triggered by former Brexit Party leer Nigel Farage, an ally of Donald Trump, during his dispute with a regal private bank. Farage claimed that his exclusive private bank, Coutts, h removed him as ir customer because of his polarizing politics. Tom also asked UK government to ensure that British banks are handling business transactions in Ukraine fairly. 

“If tre from UK with Ukraine is not possible for SMEs [small and medium-sized enterprises], U.K.’s and Ukraine’s economies will suffer, harming Ukraine’s ability to fund its defense and making Ukraine even more dependent on foreign assistance,” he warned in letter. 

While Tom agreed that British banks, deces ago, were at risk while doing business with Ukraine, he noted that “Ukraine has since greatly improved its rule of law."