British banking group HSBC has ceased processing payments from Russia and Belarus for personal banking customers.
This move follows the bank’s exit from its business banking operations in Russia earlier this year.
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The bank advised customers to “make alternative arrangements” for transactions involving the two countries, reported Reuters.
The decision comes after HSBC finalised the sale of its Russian entity in May, following an initial announcement in June 2022.
Financial institutions globally have been retracting their services from Russia in response to its military actions in Ukraine and the resulting international sanctions.
The US has led these sanctions, with recent measures targeting Russia’s Gazprombank to prevent it from engaging in new energy-related transactions within the US financial system.
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By GlobalDataRecently, the US Treasury’s OFAC sanctioned Gazprom bank, its six foreign subsidiaries, over 50 Russian banks, 40 securities registrars, and 15 finance officials to limit Russia’s access to global financial systems in the backdrop of the Ukraine conflict.
The future of these sanctions could be uncertain, as US President-elect Donald Trump, known for his scepticism towards US support for Ukraine, may consider lifting them upon taking office.
HSBC’s decision to halt personal banking payments is also seen as a response to its past regulatory challenges, notably the more than $2bn in fines and civil penalties it paid in the US for anti-money laundering shortcomings at its Mexican unit.
Last month, HSBC announced that it will restructure into four divisions—Hong Kong, UK, Corporate & Institutional Banking, and International Wealth & Premier Banking—starting 1 January 2025, to advance its strategic goals.
