Regulatory Alerts2020-08-08
Added · Updated
HKMA Guidance on Distinction Between Targeted Financial Sanctions and Foreign Unilateral Sanctions
The Hong Kong Monetary Authority issued this circular to clarify that unilateral sanctions imposed by foreign governments hold no legal status in Hong Kong and do not create obligations for authorized institutions. The regulator emphasized that while Hong Kong fully implements United Nations targeted financial sanctions, banks must distinguish these from foreign unilateral measures when assessing risks. Authorized institutions are required to establish policies based on thorough risk assessments and adhere to treat customers fairly principles when deciding whether to continue services to designated individuals or entities.