Sanctions against Russia and Belarus have changed the rules of the game in financial markets. Many traders have faced situations where trading accounts were blocked and withdrawals suspended. Often this happened suddenly and without any violation of the rules on the client's part.
In this article — real scenarios of blocks, reasons for such decisions and conclusions that are important to consider when choosing a broker.
Why brokers block accounts at all
It's important to understand: in most cases, a block is not a punishment for the trader, but a consequence of requirements from:
- international sanctions regimes
- broker partner banks
- payment systems
- regulators of a particular jurisdiction
Even if the broker itself is ready to work with clients from Russia or Belarus, its infrastructure may not be ready.
Example 1: Blocking by country of residence
Scenario: A user opened an account several years ago, traded successfully, and passed verification. After sanctions were tightened, the broker conducted an internal audit and identified clients from sanctioned countries.
What happens:
- account is switched to "read-only" mode
- trading is prohibited
- withdrawal of funds is temporarily frozen
- client is offered to close the account after additional checks
Reason: legal risk for the broker when serving residents of certain countries.
Example 2: Refusal of partner bank to service broker
Scenario: The broker did not introduce restrictions for clients from Russia or Belarus, but its settlement bank changes its policy.
What happens:
- withdrawal of funds via bank transfer becomes impossible
- broker suspends operations for some clients
- money "hangs" until a new payment solution is found
Reason: banks often act stricter than brokers themselves to minimize sanctions risks.
Example 3: Blocking due to citizenship, not location
Scenario: A client lives outside Russia or Belarus but has Russian or Belarusian citizenship.
What happens:
- repeated KYC check
- request for additional documents
- possible refusal of service despite residence permit in another country
Reason: some sanctions requirements are applied by citizenship rather than actual place of residence.
Example 4: Freezing of funds due to payment system
Scenario: Account replenishment was done through a third-party payment service or electronic wallet.
What happens:
- payment system blocks transactions
- funds are not credited or "get stuck"
- broker physically cannot return money immediately
Reason: payment providers under sanctions pressure often introduce restrictions faster and stricter than brokers.
Example 5: Forced account closure
Scenario: A regulated broker receives a directive from the regulator to stop serving clients from sanctioned countries.
What happens:
- client is given a limited time to withdraw funds
- new trades are prohibited
- after the deadline, the account is closed
Reason: regulatory requirements that the broker cannot ignore without risking its license.
Important: it's not always the broker's fault
Key point often missed by traders:
Account block ≠ fraud
Account block ≠ client violation
It is often the result of external pressure, not internal company decisions.
How we account for such risks in broker ratings
When evaluating brokers, we specifically analyze:
- history of working with clients from sanctioned countries
- transparency of communication under restrictions
- availability of alternative payment solutions
- real cases of blocks and their resolution
This is why a broker with formally "ideal conditions" can receive a lower rating if the risks of blocking for clients from Russia or Belarus are too high.
Conclusion
Sanctions have made broker selection more complex and requiring a conscious approach. Ignoring sanctions factors can lead not to losses in the market, but to loss of access to your own funds.
Understanding the mechanisms of account blocks is not fear, but a tool of protection.