China’s Chouzhou Commercial and Bank of China began creating blacklists of legal addresses, which is why non-sanctioned companies also faced restrictions on account use. This was reported to RBC by lawyers and consultants specialized in agreements with China.
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Restrictions are introduced if an unsanctioned legal entity is registered at the same address as the sanctioned one. Companies from Hong Kong, Turkey and Russia have already faced account blocking, “however, the list of jurisdictions is not limited,” the experts clarified.
Banks track a large amount of information, including KYC (Know Your Customer) data, which includes the registration address, said consulting firm ITSWM.
They added that to reduce time and costs, lending institutions are automating data tracking processes; As a result, customers may be flagged with a “red flag” based on an address match.
In order for a company to be excluded from the blacklist, it must change its legal registration address, according to experts interviewed by RBC. According to them, if this is not possible, it will be necessary to demonstrate to the bank that the company has no link with the sanctioned legal entity.
In mid-November, RBC wrote that the Bank of China and Chouzhou Commercial increasingly began to block yuan payments from countries that may be associated with supplies to Russia. Experts explained this by saying that Chinese banks “comply with US sanctions much more carefully than the Americans themselves.”
Author:
Bogdan Muzychenko
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
