Raiffeisenbank, a prominent financial institution in the Czech Republic, has stirred controversy with the recent cancellation of accounts belonging to a diverse group of individuals, including a nurse, an IT entrepreneur, and students. These account holders suspect that their Russian citizenship may be the primary reason behind these abrupt actions.

Katerina Levchenko, who has been residing in the Czech Republic for three years, expressed her shock when she discovered her account cancellation. She recounted that the bank informed her of the decision when she was dealing with a different matter at a branch, and she had received no prior communication about the issue. Levchenko’s account was scheduled to be closed in November.

While the Czech branch of Raiffeisenbank has defended its actions, stating that it is following Czech and international laws and regulations, and that it sends requests to high-risk clients to provide required documents well in advance, many account holders remain puzzled by the lack of clear reasons for the cancellations.

Furthermore, there are suspicions that the bank’s actions may be related to anti-Russian sanctions. Austria’s Raiffeisen Bank International, which has a substantial presence in Russia, is under pressure from the European Central Bank to reconsider its profitable business operations in Russia. The bank’s plan to separate its Russian business and set up an independent company with its own legal personality has raised questions about its future in Russia.

The cancellation of bank accounts has had severe consequences for Russian students in the Czech Republic. To obtain a residence permit for their studies, they must prove they have sufficient funds for their entire course, often requiring bank statements as proof. Igor Minenko, a third-year student at Charles University, shared his account of the process, including the bank’s demand for proof of his mother’s income. Despite complying with these requests, his account was closed without explanation.

This situation has left many students in a precarious position, as they need an account to apply for a residence permit, but they also require a residence permit to open a new account, creating a challenging catch-22 scenario.

As Raiffeisenbank faces scrutiny and questions regarding the rationale behind these account cancellations, the incident highlights the complexities and challenges associated with financial institutions navigating international regulations, sanctions, and their impact on account holders.

Article by Prague Forum