American Interactive Brokers explained the closure of Russian accounts

“Interactive Brokers continually reviews its exposure to sanctions and other financial crime risks in the jurisdictions in which it operates, resulting in the closure of certain accounts. This ongoing work is not aimed exclusively at Russian clients,” said a representative of the broker.

The day before, on November 6, Vedomosti reported that Interactive Brokers clients with Russian citizenship and EU residence permits began receiving notifications that their accounts would be closed within 30 days. According to the newspaper, even those who pay taxes in the EU and have residence permits in Kazakhstan and the United Arab Emirates received letters.

In notices to clients, the broker explained the blocking of accounts as “internal policy.” Interactive Brokers has marked accounts subject to closure as Closure Only: this means that the client can reduce or close positions and withdraw money, but not increase or create new ones.

The company also made it possible to transfer the account subject to blocking to another broker through the automatic client account transfer system (ACATS). To do this, you must contact a new broker and request an account transfer.

Law firm FTL Advisers linked the new wave of Russian account closures to the new US blocking sanctions, which the country introduced on October 30 against more than 30 people and more than 360 companies.

Interactive Brokers began restricting services for Russians in 2022, following the start of military operations in Ukraine. In August 2024, the broker banned Russian clients from replenishing accounts in 12 currency pairs.