Wary of Western sanctions, Turkish banks oppose Russian customers: report
Newcomers to Turkey are struggling to make deposits and transfers in Russian banks, according to multiple sources, who are taking a cautious and skeptical approach for fear of violating Western sanctions on Moscow.
Private lenders in particular are resisting some customer requests and driving others through additional layers of compliance to ensure they are complying with international and domestic law, four bankers and two Turkish officials said. told Reuters.
All this is frustrating Russians who have flocked to Turkey since Moscow invaded Ukraine more than three weeks ago, many with cash in hand. Most people have left home to protest the war or escape new sanctions in Russia, mostly arriving in Middle Eastern and Caucasus countries.
At least six Russians in Istanbul said it was difficult to do basic banking, in part because Visa and MasterCard suspended operations for them under US sanctions to punish President Vladimir Putin for aggression.
“I managed to get dollars from Moscow and trade them here. But I don’t have the card yet,” said Philip Chekhunov, a Russian who works in animation and has arrived in Istanbul in recent weeks.
Seeking work to pay for things like housing, many Russians have sought to open accounts and deposit money at local banks, as Turkey has good relations with Moscow and oppose sanctions imposed by many of its NATO allies. Huh.
Caution
But even though they technically don’t face as many hurdles as other foreigners, visiting bank branches hasn’t been easy for middle-class Russians.
“Private banks in particular are very careful on new Russian deposits and fear sanctions,” said a senior banker requesting anonymity, adding that the industry’s “know your customer” standard for verifying customer identities is critical. .
“The problem is not in opening the account, but how the money will come and what if there is a restriction,” the person said. “Banks are very careful when it comes to new accounts.”
The BDDK banking regular said that authorities and financial institutions are closely following the sanctions imposed on Russia. But “our organization has no directive to limit citizens of any country that is not within the scope of the sanctions decision,” it told Reuters.
It is not clear how many Russians have arrived in Turkey since the invasion began.
Their inability to use Visa and MasterCard abroad has fueled demand for the domestic Mir card payment system, which operates in Turkey, Armenia, Vietnam and some other countries.
Many Russians in Istanbul have been seen paying hotel and restaurant bills with the Turkish lira, which is cheaper after sliding more than any other emerging market currency last year.
“I have only cash,” said Mr. Chekhunov, a native of Moscow.
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