Media: Israel`s biggest bank block Russian properties
Date
11/23/2023 4:22:43 AM
(MENAFN) In adherence to European Union (EU) sanctions, Israel's three largest banks—Discount Bank, bank Hapoalim, and Bank Leumi—have reportedly segregated assets in accounts owned by Russian citizens or Russian tax residents, as stated by Mark Oigman, the founder of international financial company SmartGen, according to Forbes on Wednesday. The move follows a directive from Euroclear, the European Union's largest depositary, instructing partner banks to segregate accounts belonging to Russians to ensure compliance with European Union sanctions.
Oigman highlighted that the majority of asset-holders were notified in advance by the banks about the potential segregation of their accounts. This preemptive communication allowed account holders ample time to sell or transfer their securities before the segregation took effect. Notably, the segregation specifically targets assets linked with Euroclear, and Russian residents still have the freedom to open accounts and engage in foreign securities trading through Israeli banks, provided these securities are outside the European Union's jurisdiction.
The context for this action lies in the sanctions imposed on Russia over the Ukraine conflict, with the European Union and Switzerland restricting assets belonging to Russian citizens last year. These restrictions included a ban on receiving more than EUR100,000 in European Union-based accounts and a similar limit on investment accounts. In the case of investment portfolios exceeding EUR100,000, coupon income, dividends, or proceeds from asset sales were directed to a segregated account, inaccessible to the account owner. Euroclear gained the authority to block these funds in the event of sanctions violations.
The implementation of asset segregation by Israeli banks underscores the global financial sector's role in enforcing sanctions and maintaining compliance with international regulations.
As geopolitical dynamics continue to influence financial practices, the impact of such measures on account holders and the broader economic landscape remains a topic of interest for financial experts and policymakers.
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