US banks block accounts of clients for attempts to make payments from Russia

US banks are blocking accounts of Russians who try to use their services from the territory of Russia.

Source: Kremlin-aligned media outlet RBK

Details: US banks can block accounts of Russian citizens when they use their services in Russia. This fact is established by American credit organisations based on the client's Russian IP address.

There have been several incidents where US banks have blocked accounts of clients when they attempted to conduct transactions from Russia (i.e. using a Russian IP address). Such cases have been recorded over the past year and a half.

Anton Samev, a senior partner at Pen & Paper, stated that blocking accounts by IP address is one of the manifestations of overcompliance, which is mainly observed by large US banks such as Wells Fargo.

The report adds that banks may block accounts with a Russian IP address based on Executive Order 14 071 and OFAC's March 2022 guidance, which prohibit the provision of legal and financial services to persons located in Russia, i.e. persons who are on the territory of Russia or persons habitually residing in Russia. 

Background: Raiffeisenbank stops processing money transfers to individuals in foreign currency.

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