Banks in Britain have warned the government that a plan to ban all Russians from holding more than 50,000 pounds ($65,430) in their accounts is illegal and unworkable, sources said.
There are currently more than 70,000 Russian-born nationals living in Britain, government estimates show, and London has long been one of the top destinations for Russian money in Europe, with many elite families settling in the capital, Reuters reported.
The banking industry sources told Reuters they feared the British proposals on Russian deposits would break equality laws, which forbid discrimination on the basis of nationality, in the latest challenge to rolling out sanctions against Moscow.
"What they are proposing is illegal, there's no question about it," said one bank executive, who has held talks with the government on the plans. "This feels like a rushed announcement where the consequences haven't been thought through."
All of the bank sources who spoke to Reuters said the plan would require significant updates to technology, account opening processes and may be too complex to implement.
Although customers are required to disclose residency when opening an account, this does not usually include providing data on nationality, one said.
This means banks would need to ask all customers holding in excess of 50,000 pounds to supply details of their nationality in order to identify Russian customers.
