Russian companies are facing an increasing number of account restrictions and suspensions in major Chinese banks due to associations with certain “blacklisted” legal addresses, The Moscow Times reports. These measures, reportedly enacted by prominent financial institutions such as the Bank of China and Chouzhou Commercial Bank, are targeting firms whose registered addresses coincide with those of sanctioned entities.
According to legal experts and professionals familiar with Chinese financial regulations, this trend has escalated in recent months, affecting a growing number of Russian businesses. The restrictions do not appear to be isolated incidents but part of a broader, systematic approach by Chinese banks in ensuring compliance with international sanctions lists.
Chinese banks, notably the Bank of China and Chouzhou Commercial, have included in their blacklists addresses frequently used for corporate registrations in Turkey and Hong Kong. Ivan Tikhonenok of Amond & Smith, a legal firm advising Russian companies on dealings with China, identified specific locations flagged under this new policy. I
n Turkey, an address at No: 52 Hasat Sk., Kamara Iç Kapi No: 1, Merkez Mah., Sisli, Istanbul, is now blacklisted, impacting companies registered there. In Hong Kong, widely recognised business registration hubs, including Room 19C Lockhart Centre 301-307, Lockhart Road, Wan Chai, have been similarly marked.
These addresses have traditionally served as convenient locations for setting up corporate entities due to their high volume of registrations, often associated with international business operations.
Suran Radnaeva, CEO of Sinoruss, a legal consultancy firm, confirmed that at least one Russian address has also come under scrutiny. She stated that the Bank of China is extending its checks beyond merely the company’s address, delving into the business name, type of operations, and details of the company’s director.
During this assessment period, affected companies face restricted access to their accounts, which can hinder financial operations until the verification process is complete.
The impact of these restrictions is considerable. As their accounts undergo review, Russian companies attempting to navigate international sanctions are experiencing delays in transaction processing, disrupting both domestic and international trade.
Legal advisors warn that while these measures are presently concentrated on specific locations, the approach may set a precedent for expanded scrutiny across other commonly used corporate addresses.
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