U.S. Sanctions Against Individuals in Greater China May Come Suddenly: How Overseas Advisors Can Protect Their Clients from Overreach
Businesspeople in Greater China with global business interests could be at risk of financial sanctions if diplomatic relations between China and the United States sour, especially as the U.S., UK and their allies continue to find tools to exert pressure on China. Below, we explore how financial and wealth advisors can mitigate the risks these clients face from sanctions and other enforcement actions.
June 22, 2023
As the United States, the United Kingdom, and their allies continue to find tools to exert pressure on China, businesspeople in Mainland China, Taiwan, or Hong Kong SAR with global business interests could become financial sanctions targets if diplomatic relations between China and United States sour.
Jurisdictions where many Chinese businesspeople base corporate and trust structures to hold their non-PRC-domiciled assets – including the Cayman Islands and the British Virgin Islands – regularly enforce sanctions designations created by the United Kingdom, compounding the risks especially when sanctioning governments have a tendency to sanction a wide range of targets to achieve maximum pressure.
Financial and wealth advisors to these businesspeople are often the first to sense if their clients may be vulnerable, and they can mitigate the risks their clients face from financial sanctions and other enforcement actions provided they act early and decisively:
If Sino-American relations deteriorate further, the United States and its allies will not hesitate to aggressively deploy sanctions against vulnerable individuals in Mainland China, Taiwan, or Hong Kong SAR with global business interests. As prospects of a confrontation between the two superpowers continue to rise, at-risk businesspeople and their advisors should act now to avoid the risks of sanctions overreach and protect their legitimate interests.
Kobre & Kim is a global law firm that focuses on cross-border disputes and investigations, often involving fraud and misconduct.
To preserve the assets, liberty and reputation of ultra-high-net-worth individuals (UHNWIs) with global business interests, our team: