In the shadow of sanctions on Russia, Swiss banks are tightening their practices toward clients from that country. Russians living in Switzerland are losing their bank accounts, while financial institutions are profiting from frozen Kremlin assets. An investigation by Radio Télévision Suisse (RTS) reveals a wave of such account closures.
As Philipp Fischer, a banking law expert at the Geneva firm Lenz & Staehelin, explains: "Banks realize that this client group [Russians] generates very high compliance costs, because enhanced checks are needed — especially to prevent circumvention of sanctions through these accounts." Institutions are complying not only with Swiss but also with foreign regulations, which amplifies concerns. According to RTS, many banks are terminating their relationships with Russian clients without giving reasons, viewing them as high risk. Switzerland does not guarantee the right to a bank account — unlike the EU, where in France, for example, the central bank designates an institution to serve clients rejected by other banks. Prof. Carlo Lombardini of the University of Lausanne warns: "The group of people being denied bank accounts in our country is growing — whether because of insufficient deposit values or transactions deemed too risky, such as international trade. This is problematic, because without an account they are excluded from economic and social life."
Swiss regulations are uncompromising. The Swiss Bankers Association (SBVg) emphasizes strict compliance with sanctions from the UN, OSCE, and trading partners, including EU sanctions since February 2022 — in response to the invasion of Ukraine. Banks have implemented controls and processes to prevent violations, integrated with the anti-money laundering (AML) system. The SBVg provides a platform for information exchange and cooperation with authorities, such as the State Secretariat for Economic Affairs (SECO). "Integrity and reputation are key success factors for the financial center," reads the association's statement. Switzerland, as a global hub, must balance between neutrality and international pressure.
Paradoxically, sanctions are bringing profits. Swiss banks manage assets worth up to 200 billion Swiss francs belonging to Russians — including 7.4 billion francs from the Russian Central Bank's reserves (SECO data from May 2023). In the EU, G7 discussions concern using the interest from these funds for aid to Ukraine — for example, Euroclear earned 4.4 billion euros in 2023 on investments of frozen funds. In Switzerland, the assets sit with private banks, which complicates the government's decision. The Federal Council is monitoring the EU and G7 work but is taking bank interests into account: confiscating interest could undermine investor confidence. It is estimated that globally, 300 billion dollars of Russian reserves have been frozen, with Switzerland holding 15 to 25 percent of Russian offshore assets.
The implications are profound. For ordinary Russians living in Switzerland, the situation is far from easy, but oligarchs have already found ways to bypass Swiss banks, transferring funds to the Emirates, where asset growth surged by 100 billion dollars in 2023.
