LONDON - Barclays (LON:BARC) Plc has initiated banking services for the Potanin Foundation, a London-based charity led by Russian billionaire Vladimir Potanin, who was sanctioned following Russia's invasion of Ukraine. This move comes after JPMorgan (NYSE:JPM) severed ties with the foundation in 2022. The Potanin Foundation, which holds a fund pool of $117 million, operates under the authorization of UK sanctions authorities and receives investment advice from Goldman Sachs Group Inc (NYSE:GS).
The engagement of Barclays with the Potanin Foundation is noteworthy given the backdrop of increased regulatory scrutiny over how major banks handle charity accounts, especially those associated with individuals facing sanctions. In June 2022, the UK imposed sanctions on Vladimir Potanin, which led to JPMorgan liquidating investments and ending its relationship with his charity. This action triggered a statutory inquiry by the Charity Commission into the foundation's asset protection and oversight.
In response to this inquiry, Guy Hollander from Mazars LLP was appointed as interim manager in October 2022 to oversee the foundation's property and affairs. Subsequently, Barclays opened an account for Hollander to manage the charity's assets with authorization from HM Treasury’s sanctions office. A Barclays spokesperson confirmed that this step was taken in compliance with a granted license and that the bank had no prior banking relations with the charity.
Financial reports have indicated a significant reduction in the foundation’s activities, with income reported at £879,000 and expenses at £614,000 for the year ending December 31, 2022. This marks a substantial decrease from peak spending of £42.7 million (GBP1 = USD1.2565) in 2019.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.