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China Says US Sanctions Have No Legal Effect in Hong Kong or China

05 January 2021
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China Says US Sanctions Have No Legal Effect in Hong Kong or China

China’s banking and insurance regulator claimed US financial sanctions have no “legal effect” in Hong Kong or China.

However, analysts have now warned that financial institutions might still face penalties if found providing services to sanctioned entities in these jurisdictions.

Banks and other FIs should review their Sanctions compliance procedures to carefully consider the extra-judicial implications of dealing with sanctioned entities