US sanctions against Hong Kong officials are null and void in the Chinese Administrative Region. At the same time, the restrictions could hurt US banks.
It is reported by The Financial Times.
As previously reported by News Front, Washington blacklisted 11 Chinese and Hong Kong statesmen, banning them from conducting any financial activity in the United States and freezing assets in American banks. At the same time, the American authorities are ready to punish financial structures that will cooperate with unwanted officials.
FT notes that the effectiveness of the sanctions is extremely doubtful, because it depends on whether these individuals have accounts in American banks at all. The Hong Kong Monetary Authority generally stated that the sanctions on the territory of the autonomy have no legal force. However, the restrictions will have a negative effect, albeit not the one expected.
International and American banks operating in Hong Kong may face problems. First, they will have to freeze their own assets. Second, transactions will become more complex if they go through the US financial system. Finally, any bank anywhere in the world could be punished by the United States for participating in transactions with Chinese officials.U.S. tells how billionaires were allowed to cash in on the COVID-19 pandemic