Dubai: The UAE Central Bank is cancelling the license to operate for Russia's MTS Bank, which will now have to wind down operations within six months from the date of the decision. MTS operates one branch in Abu Dhabi.

"This decision comes after considering the available options regarding the new status of the MTS Bank, and taking into account the sanctions risks associated with the bank after the designation," the UAE Central Bank said in a statement.

In the winding down process, the MTS Bank branch will be prohibited from opening new accounts and conducting transactions, 'except for clearing prior obligations and the bank’s use of Central Bank’s payment systems will be restricted to this purpose only'.