Banks of UK To Collect Fees for Frozen Russian Accounts

On Monday, August 22, a license that allows United Kingdom banks to collect fees from Russian frozen accounts as payment for services has been put into effect. According to the sanctions imposed against Russia, the license was issued by the UK Office of Financial Sanctions Implementation on March 10.

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"General License INT/2022/2104808 allows for the payments of bank fees and service charges. Under this license: a bank may take the payment of bank and service fees from accounts frozen under the Russia Regulations, arising from the routine holding or maintenance of those accounts," read the license publish on Monday.

"This includes taking payment for arrears of such fees. Payments to banks designated under the Russian Regulations are not permitted to take these payments," it reads.

"Persons incurring tax liabilities for making these payments can pay those tax liabilities" to the UK tax service, explained the document.

However, the announcement did not reveal if the license has a specific timeframe.