In the climate of sanctions against Russia, most Western and international banks refuse to open accounts in the name of Russian clients or, reversely, close them. In addition, issues might arise in relation to dual citizenship and/or KYC checks with foreign service providers, real estate sellers, investment brokers, shipyards, etc.
A solution here would be an individual due diligence legal opinion confirming the client’s insignificant risk factor and overall integrity. Such an opinion will be issued in English and will contribute to or accelerate compliance checks by a foreign bank or counterparty, or could be used in a filing for dual citizenship or permanent residence.
While preparing such an opinion, we will ascertain the person’s identity, check the relevant compliance databases, court databases, databases maintained by law enforcement and regulatory agencies (including the Federal Court Bailiff Service, the Federal Tax Service, etc.), establish the public profile on the basis of open sources, and identify jurisdictions imposing sanctions (if any). Questionable points will be explained by reference to applicable Russian law.
As a result, the actual sanctions or regulatory risks will be determined for foreign counterparties or potential counterparties in a particular situation and potential transaction.
BGP Litigation’s sanctions law and compliance lawyers boast many years of experience in advising on compliance and due diligence matters run by foreign banks and counterparties.
- Our experts conducted a personality and integrity due diligence for a person repatriating from Russia to Israel and prepared clarifications in relation to the Russian portion of their biography. All this helped in passing the compliance test and transferring USD 100 mln to Hapoalim, Israel’s biggest bank.
- BGP Litigation’s team helped about a dozen individuals overcome, in just two months, banks’ decisions to close their bank accounts owing to them being targeted by Ukrainian sanctions or holding Russian passports. Among the banks involved were respectable Swiss banks Pictet & Cie and Lombard Odier, the UK’s Barclays and Monaco’s Société Generale.
- Our lawyers moved things forward in relation to a bank account with ENBD in the UAE. Following submission of our compliance opinion, the bank approved opening a bank account in the name of a major Russian businessman, a contractor of Russian defence sector entities.
In practice, a legal opinion in relation to a businessperson’s personality, overall integrity and financial decency issued by independent Russian attorneys could contribute a lot to passing compliance tests abroad and might reduce the waiting time. Without such a due diligence opinion at hand, it is next to impossible to open accounts with foreign and international banks or to prevent their closure.