On Thursday, the Central Bank of the UAE (CBUAE) canceled the license of MTS bank, Abu Dhabi branch, which is a Russian bank.
The CBUAE stated that the Abu Dhabi operations of MTS bank will be wound down within six months from the date of the decision.
MTS bank had obtained a license to operate in the UAE in 2022. According to the CBUAE statement, this decision was made after considering the available options regarding the bank’s new status and taking into account the risks of sanctions associated with the bank after its designation.
During the winding down, the branch will be prohibited from opening new accounts and conducting transactions, except for clearing prior obligations. “The bank’s use of Central Bank’s payment systems will be restricted to this purpose only,” the statement noted.
The US and Britain added several Russian banks including MTS to their sanctions list in February, while the European Union cut off more banks from the SWIFT global payments system.