According to Financial Times, in response to the US financial sanctions bill “Hong Kong Autonomy Act”, ”US and European banks in Hong Kong are conducting emergency audits of their clients to identify Chinese and Hong Kong officials and corporates that could face US sanctions over a new national security law.”
Banks terminate the relationship with sanctions’ entities
Donald Trump, US president, is expected to sign into law as early as next week the Hong Kong autonomy act. The legislation gives the administration the power to impose sweeping sanctions on officials accused of undermining Hong Kong’s semi-autonomous status, as well as banks and state entities that do “significant transactions” with them.
At least two large international banks in Hong Kong were studying which of their clients and partners might be exposed to sanctions under the act and with which they might have to terminate their business relationships, people familiar with the matter told the Financial Times.
No man can serve two masters
The US sanctions could range from freezing the property of individuals and companies to cutting them out of the US financial system. They could also stop banks from conducting foreign exchange transactions over which the US has jurisdiction, implying that Washington could try to curb their access to dollars.
The act could force financial institutions to choose between doing business with the US or China, lawyers said. Hong Kong’s national security law makes it illegal to comply with US sanctions against Hong Kong and China.
Bank interact 課金給《多聞》：email@example.com
Subscribe us in:
Share this article to: