Unicredit reported problems with international transfers of legal entities

UniCredit Bank clients may encounter difficulties when sending money transfers abroad due to the actions of foreign correspondent banks. This is stated in a message from the credit institution, which is posted on the page for legal entity clients. There is no such information on the page for individuals.

“The deadlines for execution of transfers abroad may be increased on the side of foreign correspondent banks. In addition, there is a risk that funds will be returned by a foreign correspondent bank without execution,” Unicredit Bank said. The message adds that in the event of a refund and an unsuccessful transfer, the commission from Unicredit will still be written off in full. IT is also possible for foreign credit institutions to write off commissions, but they are subject to reimbursement.

At the same time, the bank’s message indicates tariffs only for legal entities and entrepreneurs. Thus, the commission for a currency transfer will be 0.3% (minimum $100, maximum $300), and in the case of transfers of dollars or euros - 0.4% (minimum $150, maximum $350).

UniCredit Bank has accounts in US dollars with the American JPMorgan Chase and Bank of New York Mellon, in euros with the Austrian and Italian UniCredit, in Swiss francs with the Swiss UBS, etc.

In April 2024 , the European Central Bank (ECB) increased pressure on European banks whose subsidiaries continue to operate in Russia, including the Italian UniCredit. As Reuters reported , the ECB may send a request to the bank demanding that it accelerate the reduction of business in Russia. In this case, the reduction parameters may be similar to those established for the Austrian Raiffeisen Bank International (RBI). The RBI has already officially announced that it expects such an order from the ECB. According to it, the bank will have to reduce loans to Russian clients by 65% ​​by 2026 compared to the third quarter of 2023, and the same reduction should occur in terms of international payments.

Russian banks have been facing problems with cross-border money transfers since the beginning of 2022, that is, after the introduction of sanctions against the financial system due to the military operation in Ukraine . Many major players are disconnected from the SWIFT financial messaging system, transfers in dollars and euros are unavailable to banks under sanctions, and foreign banks are disconnecting correspondent accounts for Russian banks, regardless of their location on the sanctions lists, or have stepped up the verification of transfers from Russia. Unicredit Bank is not on sanctions lists and is not disconnected from SWIFT, so many cross-border financial transactions can be carried out through it, experts suggested.

RBC sent a request to Unicredit Bank. The bank did not respond to the request.