Geneva, Switzerland based Retail FX and CFDs broker Dukascopy has issued a statement that it regrets to inform its card holders about the decision of “Issuer Company” to stop issuance and support of all client cards issued in frame of partnership with this company. The action of Issuer Company was taken without a preliminary note and with immediate effect in contradiction to what Dukascopy called normal business practice.

Like a number of other Retail FX brokers, one of the marketing and retention tools Dukascopy had been promoting among its clients was to hold a Dukascopy branded debit or credit card, and thus access or withdraw funds (or deposit funds) virtually anywhere in the world.

Soon before the note about the card cancellations was made, Dukascopy issued the following statement about rumors circulating in certain social media that the company was supposedly helping Russian residents avoid sanctions:

THE STATEMENT REGARDING THE DISSEMINATION OF FALSE INFORMATION ON DUKASCOPY BANK

Dukascopy Bank diligently complies with all sanctions incorporated into the Swiss legislation and financial regulation. Information disseminated in the media that the Bank issues VISA / MasterCard cards to residents of the Russian Federation does not correspond to reality. Information that the Bank helps Russian residents avoid sanctions also does not correspond to reality. The Bank regrets the dissemination of false information in the media and social networks.

Dukascopy said that it ensures all its clients that their money is safe on the accounts at Dukascopy Bank. Clients have full access to their accounts and are free to use all other payment methods for deposits and withdrawals. The funds held on the cards will be returned back to clients’ multi-currency (MCA) account as soon as possible.

The company reminds that all holders of related cards are clients of Issuer Company. This company decided to issue or not issue a particular card and implement all cards monitoring and restrictions as well as imposed by law sanctions screening. This is why Dukascopy Bank within this cooperation may only mirror the requirements and restrictions imposed by Issuer Company.

Dukascopy said it is “sincerely outraged” by what happened, and asks journalists to stop spreading slander that Dukascopy Bank in any way helps to circumvent anti-Russian sanctions.

Dukascopy Bank, being a Swiss bank, said it is devoted to respecting all applicable Swiss regulation, including all sanctions supported by Switzerland. The Bank is focusing on servicing of international retail clients. The Bank does not consider High Net Worth (HNW) individuals and politically exposed persons as its target group. The management of the Bank does not include politically exposed persons and have no connections with them.

Total Russian clients’ funds at Dukascopy do not exceed 4.3 million Swiss francs (USD $4.6 million), which corresponds to approximately 3% of total client equity, with an average 1.2 K per account. The company said that this figure shows that the bank is not focused on the Russian market.

Dukascopy Bank said that it is in good financial position, has very high liquidity and capital adequacy ratios that evidence its stability and sustainability. On 28.02.2022 liquidity ratio LCR was 1082% while minimal required is 100%. Capital adequacy ratio CET1 was 30% while minimal required is 10.5%.

The company said that the figures above show that the bank is able to fulfill its obligations toward clients and partners without any difficulties. All services of the bank aside from payment cards are operating in normal mode without interruptions. Dukascopy added that it is looking forward to resolving the issue with card operations in the nearest future.