VTB to Stop Services for U.S. Taxpayers in Russia on Risks
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VTB Group, Russia’s second-biggest lender, will wind down banking services to U.S. taxpayers in the former Soviet republic because of a requirement to report details of these accounts to the American authorities.
The state-controlled banking group, which has about 2,000 clients paying U.S. taxes, including businesses and individuals, will not renew contracts in order to minimize the risk of penalties, though it will continue servicing existing accounts, a VTB spokesman said by phone, asking not to be identified because of bank policy. OAO Sberbank, its larger competitor, said it plans to maintain services.