✓ Swiss and EU banks are prohibited to accept any new deposits from Russian nationals, if the total value of deposits  per credit institution exceeds EUR 100,000. This rule does not apply to Russian nationals who are also Swiss/EU/EEA nationals or holders of the Swiss/EU/EEA temporary or permanent residence (Art. 5b, EU Regulation 833/2014).

✓ No restrictions for outgoing payments.

✓ EU FAQ: If you are not a designated person in the EU/Switzerland, there is no reason for a bank to restrict your account based on your Russian nationality or on the recent geopolitical conditions.

✓ If you already had a balance on your account prior to February 2022, which is higher than EUR 100,000, your deposit is grandfathered, i.e. you are allowed to keep it and do what you want with it (withdraw or leave the way it is) (EU FAQ).

What to do?

STEP 1. Legal opinion addressed to banks stating the EU/ Swiss regulations)

STEP 2. Application to SECO/EU authorities (may take long, since there is no national interest)

STEP 3. Claim to Swiss/EU court

✓ Swiss/EU banks have to comply not only with Swiss/EU sanctions  but also with those of other countries, such as US and UK.

✓ Important to distinguish which US  sanctions apply to them and in which cases.

✓ By operation of law, the sanctions designation of a person,  does not transmit to his/her parent, spouse, child.

✓ If such non-designated family members act for or on behalf of the designated relative, such activity may incur sanctions-related risk.

✓ Facts need to be analysed: E.g. when an account was initially set up for the benefit of a non-designated person (e.g.: spouse and children of a designated person).

✓ Are Swiss/EU banks prohibited from executing transactions for or on behalf of a spouse or children of designated persons by secondary sanctions? Not under Executive Order 14024.

What to do?

STEP 1. Legal opinion addressed to banks stating the EU / Swiss regulations. Legal opinion from a US lawyer with respect to US sanctions.

STEP 2. Is it possible to get a confirmation from OFAC? If no US person / US assets/US territory are involved, OFAC does not have a jurisdiction and will not issue any licenses or confirmations.

STEP 3. Claim to Swiss / EU court which will apply US law.

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CASE STUDY 3

You are a Russian national, not subject to any Swiss, EU sanctions but you are designated in the US: a Swiss / EU bank has frozen your bank account.

Do U.S. sanctions apply to Swiss/EU banks?

Primary sanctions: US nexus is required

Do Swiss/EU/Liechtenstein banks need to block my account?

✓ If the assets are physically located in the EU/Switzerland, US jurisdiction attaches by way of a US person (e.g., an asset manager), or a connection to the US (e.g.: U.S. dollar-clearing, US securities, US custodian).