While US sanctions against Hong Kong banks Middle Let trapped

In the last round of sanctions that the US government has imposed on Hong Kong, the Trump Administration announced on 7 August that it would punish 11 senior officials from Hong Kong, including the leader of the city’s Chief Executive Carrie Lam. Sanctions are not only an exit Hong Kong affect every bank in the financial center, experts say. According to official figures, 78 of the top 100 banks in the world have to make a presence in the area that are looking for long been a gateway for international companies with business in China. Here’s what the unprecedented sanctions mean for the global financial center. Because the sanctions imposed? Hong Kong is one of the major financial centers of the world and the stock market is one of the largest in the world. But for much of 2019, the often violent anti-government protests have shaken the city’s reputation as a center of permanent establishment. The protesters, activists and some Democratic politicians have begun for the assistance to foreign governments engaging and intervention in their struggle for greater political freedom. Some even began to call to the red line in Beijing Independence. Perceiving a threat to national security implemented, Beijing outlaws a broad National Security Act in July secession, subversion, terrorism and agreements with foreign governments. Beijing made the move in Hong Kong failed to adopt the national security legislation in 23 years in 1997 when the former British possession was returned to China, but the Chinese Communist Party faced international criticism on the measure. Since its adoption, the law is used by 12 opposition candidates to disqualify (for these reasons defense Hongkongere independence, urging foreign interference and the law on national security Confronts itself) and local media mogul Jimmy Lai arrested over his alleged links to a group of activists who have recruited overseas governments for sanctions. The law was also cited the arrest of four students on charges of inciting subversion and the prohibition of pro-independence slogans. Earlier this summer, the United States raised the semi-autonomous zone of special trade and economic status after President Donald Trump has signed the Law of the Hong Kong autonomy law that sanctions against officials and organizations We approved the autonomy to undermine Hong Kong. In the wake of the adoption of the Law on the Beijing National Security, Trump also an executive order authorizing the freezing of assets of a group of Hong Kong and mainland China issued by officials to undermine the autonomy of Hong Kong. Continue reading: Trump Just signed off on legislation to protect human rights in Hong Kong. Here’s what to know who has lost? Officials Eleven in Hong Kong were on 7 August Top sanctions list was the leader of the city, Carrie Lam, for what Washington said was his role in “undermine the autonomy of Hong Kong and the restriction of freedom of expression or assembly of the citizens of Hong Kong. ” The Department of Finance accuses Lam of “directly responsible for processes to implement the policy of oppression of freedom and democracy in Beijing”. Other current and former police commissioners, security and justice secretaries and other mainland officials are sanctioned in charge of Hong Kong affairs. In turn, he said in Beijing that it would punish 11 Americans, including Senators Marco Rubio and Ted Cruz. Other Americans on the list include the head of Human Rights Watch Kenneth Roth. However, no member of the administration Trump on the sanctions list. It can be more sanctions. Autonomy Law of Hong Kong needs to come that are still “significant contribution” by the Secretary of State with a list of foreigners in October to the Chinese government for 50 years after 1997, his promise of a “high degree of autonomy” for Hong Kong violate itemizing. The Treasury Secretary will also have a list of “foreign financial institutions” that a “significant transaction” have performed with these people. The President may then sanctions against individuals and organizations. Read: How National Security Crackdown Beijing Transformed Hong Kong in just one month What sanctions do? August 7 sanctions include the freezing of all property and interests in property and all entities owned (50% or more), which sanctioned directly or indirectly, by 11 civil servants, and in the United States or in the possession or control of the Americans received US companies and their foreign branches. Carrie Lam rejected sanctions. “I have no business in the US, and I do not particularly like to go to the US,” he said, according to local newspaper, the South China Morning Post, citing a television interview that Lam was. But the sanctions may affect the ability officials make companies in Hong Kong to operate business. “This is probably sanctioned cause inconvenience to the new officials, especially when it comes to international banks. The credit cards can be canceled, late remittances, loans have declined, and so on,” said Nick Turner, a lawyer in the law firm of Steptoe & Johnson in Hong Kong in economic sanctions. He also says that officials may not be able to use the US-payment or online shopping platforms. Benjamin Kostrzewa, a registered foreign lawyer at the law firm Hogan Lovells in Hong Kong, and former general counsel assistant at the US Trade Representative’s Office says that US banks will be designated to complete transactions with 11 officials. regional or Chinese banks will be able to negotiate with the officers, probably still, although at risk of future sanctions. “You can still technically make transactions in dollars or Hong Kong Renminbi sanctions and the United States to avoid because not a US dollar or not involved,” he says. “However, it is possible to identify targeted foreign followed through the process of financial institutions in Hong Kong Autonomy Act, the bank these people.” Read more: radical such as lawyers and bankers join the barricades to protest the Hong Kong rock of the financial district of the city banks affected us? 11 officials punished interested, Turner says that every bank in town should already sanctions compliance program in place. At least one US bank is taking steps related to sanctioned officials to suspend accounts, according to Bloomberg. Legal experts say the law the autonomy of Hong Kong is likely to have a significant impact on financial institutions. Kostrzewa said that according to the law and outside the United States. The banks will be subject to having relationships with Carrie Lam banking institutions and foreign financial and various sanctions can be identified. Financial institutions around the world could face penalties imposed if they have meaningful relationships with people who are seen as undermining the autonomy of Hong Kong. “We could through the banks in the British patent speak or elsewhere, Australia, Singapore, where a person could have a significant banking relationship,” says Turner. Meanwhile, Article 29 of the National Security Law of Hong Kong makes “the imposition of sanctions or blocks, or engage in other hostile activities” against Hong Kong or China a crime. Some legal experts wonder whether the means for compliance with US sanctions could be illegal under the law. Albert Chen, a professor of law at the University of Hong Kong, says he believes the product to the people of the destination place meant requests for sanctions “do not think this article is designed for criminal liability to banks or companies to require that may be required to attend by the law of a foreign state for the implementation of a penalty by imposing foreign country in China or Hong Kong, “he says. But the National Security Law is vague, and it remains unclear how it is applied. Experts say that complicate things when it is applied, in fact, organizations that comply with US sanctions. “If it is found that is prohibited by US sanctions after the National Security Law, there is no international banks in a difficult situation ask,” said Kostrzewa.
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