Russia’s #2 Bank Kicks Out US Clients
Even at this late stage, Russian law and FATCA are incompatible — Russian banks will be able to comply with U.S. law or Russian law, but not both, the head of the Association of Russian Banks said Thursday. VTB is the first bank to decide to settle the issue by unloading its U.S. clientele, but it may not be the last.
VTB's press service said Thursday that to minimize risks "VTB's senior management has instructed the Group's entities to gradually phase out business with clients, both individuals and legal entities, that are U.S. taxpayers." State-owned VTB has about 2,000 U.S. clients, the press service said.
And if U.S. citizens do not like it, Garegin Tosunyan, head of the Association of Russian Banks said, they can take their complaints to the U.S. government. "The situation is ridiculous, but Russia is not to blame," he said, adding that Russian banks will cope more easily with the loss of U.S. clients than U.S. clients will without Russian banking services.
Editor's Note: This is just the latest example of how FATCA functions as a sort of de facto capital controls for Americans. See more in this article here.