UBS Bank to Immediately Freeze World Chess Federation Accounts Amid U.S. Sanctions on President Ilyumzhinov

Headline: World Chess Federation Faces Immediate Account Freeze Amid Leadership Turmoil

ATHENS, Feb 15 (Reuters) – The World Chess Federation (FIDE) announced today that UBS Bank has informed them that their accounts will be immediately frozen due to the ongoing U.S. sanctions against FIDE President Kirsan Ilyumzhinov, who is embroiled in a power struggle with the federation’s secretariat.

Ilyumzhinov, a Russian businessman and politician who has led FIDE for over two decades, was sanctioned by the U.S. Department of Treasury in November 2015 for allegedly assisting the Syrian government. However, he has consistently denied these accusations.

“Mr. Kirsan Ilyumzhinov denies the outrageous and false allegations made against him and is not aware that FIDE’s bank accounts have been frozen by UBS,” stated his London solicitor, Nigel Kushner. “He believes these allegations are part of an ongoing smear campaign related to a power struggle at FIDE in advance of elections taking place this year.”

UBS declined to comment on specific clients but emphasized their commitment to adhering to all applicable laws and regulations. “We can’t comment on whether individuals or organizations are clients of UBS,” the bank stated.

The situation escalated last March when Ilyumzhinov accused FIDE of attempting a “revolution” to oust him, following a false announcement of his resignation. He has expressed his intention to serve his full term and will decide later this year whether to seek re-election in September.

FIDE’s secretariat, based in Athens, claims to have transferred presidential powers to Ilyumzhinov’s deputy in December 2015, although the federation’s website still lists Ilyumzhinov as president.

In a letter dated February 12 and posted on FIDE’s website, treasurer Adrian Siegel confirmed the impending account freeze. “The Swiss Bank UBS has announced that they will immediately close our accounts,” he wrote. “The white money strategy in Switzerland does not allow business with institutions or persons on the sanction list of the U.S. Department of the Treasury. Thus, it was only a question of time until we faced this serious problem.”

Siegel noted that FIDE had previously been allowed to maintain its accounts because Ilyumzhinov had assured them on multiple occasions that he would soon be removed from the sanctions list.

As the federation navigates this financial crisis, the internal power struggle continues to unfold, raising questions about the future leadership of FIDE and its operations.

(Reporting by Karolina Tagaris in Athens, Michael Shields in Zurich, and Maxim Rodionov in Moscow; Editing by Mark Bendeich)