New US sanctions prompt Chinese banks to restrict financing for individuals linked to Russian military industry

This was reported by Bloomberg.

In recent weeks, at least two banks have initiated audits of their Russian business, specifically focusing on cross-border transactions.

The report highlights that these banks will sever ties with customers on the sanctions list, ceasing to offer any financial services to the Russian military industry, irrespective of the currency or location of transactions.

Lenders are also set to enhance customer due diligence, verifying the registration of their companies, authorized beneficiaries, and ultimate controllers in Russia.

The scrutiny will extend to foreign customers engaged in business within Russia or transporting essential goods to the Russian Federation through third-party countries.

Under the latest set of restrictions, banks have been instructed to meet stringent criteria, especially if they cannot demonstrate the relevance of their Russia-related business to sectors susceptible to sanctions.

• On Friday, January 12, US Secretary of State Antony Blinken and Japanese Foreign Minister Yoko Kamikawa reached an agreement to bolster sanctions against Russia in response to its invasion of Ukraine.
• US Deputy Treasury Secretary Wally Adeyemo is scheduled to visit Europe and Japan this month to collaborate with partners on implementing new sanctions targeting financial institutions linked to Russia.