Saxo Bank to Stop Providing Services to Russian and Belarusian Clients, Report Says

The Danish financial firm, Saxo Bank has reportedly notified its Russian and Belarusian clients about the termination of services. According to a report published by RBC, the closure of services will take effect from 6 June 2022.

Additionally, Saxo Bank has asked its customers in Russia and Belarus to close their trading positions and withdraw money before 6 June 2022. The financial services provider mentioned that the recent sanctions on Russia and Belarus are the main reasons behind the closure of services in the mentioned countries.

In a letter to its customers, the Danish brokerage noted that if the clients from Russia fail to close their trading positions by the deadline, the bank will do it on its own.

“In a letter to customers, Saxo Bank says it is forced to exercise its right to stop working with them because of the sanctions imposed on Russia. Accounts will be closed from June 6, 2022, until that time users will be able to withdraw funds, close positions or transfer securities to any broker,” RBC mentioned in a report citing the content of Saxo Bank’s letter.

“But, such transfers are subject to additional checks or counterparty restrictions, which will increase processing time or prevent the fulfilment of such requests. In some cases, it may be easier to close positions and simply transfer cash instead of securities,” Saxo Bank explained in the letter.

Sanctions on Russia and Belarus

Amid the ongoing conflict between Russia and Ukraine, several countries around the world have imposed financial restrictions on Russia and Belarus. As a result, leading financial firms have stopped providing their services to clients in both countries. During the last week of February 2022, Interactive Brokers, a prominent American financial brokerage services provider, warned the residents of Russia about the possibility of blocking their accounts.

Last month, PayPal suspended its services in Russia.