Insights | Kobre & Kim — Disputes and Investigations

The United States and its allies continue to use sanctions to attack adversarial governments and their perceived allies, putting companies and individuals with tenuous or merely alleged ties at risk.
Recent sanctions have targeted Russia, but PRC companies were designated in the February 2024 round, signaling increasing risk to PRC individuals and business if China-U.S. relations deteriorate.
At-risk individuals and business should take proactive steps to prepare.

As governments increasingly use sanctions as a geopolitical tool, ultra-high-net-worth individuals – including those with connections to Cyprus – are at risk.
Cypriot officials and financial institutions have already taken steps to target certain individuals, even those who are not sanctioned.
We explain pre-emptive steps at-risk individuals and their advisors can take to mitigate the risks and protect themselves.

The U.S., UK and their allies are continuing to find tools to exert pressure on China.
Businesspeople in Greater China with global interests could become targets of financial sanctions if diplomatic relations between China and the U.S. deteriorate further.
We explain how financial and wealth advisors can mitigate the risks these clients face if they act early and decisively.

Governments have increased focus on third parties – including offshore trustees – as they look to enforce their sanctions regimes.
This increases the risk trustees could become embroiled in an accusation of violating sanctions.
Trustees should take proactive, globally comprehensive measures to reduce their risk and avoid a cross-border crisis.

Global sanctions targeting, among others, Russian individuals and entities are layering on top of anti-money laundering measures.
These will directly impact players in the art market, raising their litigation and enforcement risks.
We explain two particular triggers stakeholders should be aware of.

As geopolitical tensions heighten, Chinese ultra-high-net-worth individuals may become increasingly at risk of becoming the target of forfeiture by hostile foreign governments.
Governments around the world have shown increasing willingness to go after assets owned by those in disfavored jurisdictions.
By deploying a coordinated global strategy, Chinese UHNWIs can lawfully defend their legitimately earned wealth.

The United Kingdom and the European Union are two critical jurisdictions that have implemented influential sanctions regimes against Russian entities.
Given the UK’s departure from the EU, key differences exist that outside stakeholders must be attuned to.
Learn the subtle yet consequential details in this reference guide, put together by Kobre & Kim’s International Private Client team.

The January 2017 Executive Order “Enhancing Public Safety in the Interior of the United States” broadens the categories of immigrants who can face deportation to include those who pose, in the judgment of an immigration officer, a “risk to public safety or national security.”
Under “Project Red,” ICE has collaborated with state and local law enforcement agencies, the United States Marshals Service, Europol, and Interpol to target and arrest individuals wanted by foreign governments. This is a departure from precedent for the U.S.
In a recent demonstration of Project Red, ICE arrested 105 immigrants and foreign nationals in a five-day enforcement operation in New Jersey. Several of these individuals were the subject of Interpol Red Notices for alleged crimes in their home countries.

Relations between India and the U.S. have recently experienced a few blows, including the termination of the former's preferential trading status with the U.S.
For future Indian defendants, it will be of paramount importance to understand the strategies and tactics of U.S. enforcement agencies in charge of bribery, national security and fraud investigations.
When regulators come knocking, those who choose to sit idly by will find themselves at a disadvantage.

The U.S. government has made its intentions clear that it will investigate and prosecute PRC-based companies and individuals that it believes employ illegal tactics to compete with U.S. companies in key sectors.
Future U.S. actions could come from any number of directions.
Whatever action comes next, a cross-border perspective and willingness to represent PRC-side clients against the U.S. government will be essential to an effective response.