Beautiful Virgin Islands

Wednesday, May 13, 2026

Hong Kong's SFC Privately Clears Way for Compliance with U.S. Sanctions

Hong Kong's SFC Privately Clears Way for Compliance with U.S. Sanctions

Hong Kong’s SFC has privately told institutions that they can comply with U.S. sanctions without facing automatic reprisals under the jurisdiction's national security law.
Hong Kong’s Securities and Futures Commission has privately told financial institutions that they can comply with U.S. sanctions without facing automatic reprisals under the jurisdiction’s new national security law, the Financial Times reported.

The counsel comes in response to legal concerns that a clause in the security law would trigger harsh penalties against companies that “collude” with a foreign government’s sanctions on Hong Kong, the newspaper said. In response to the implementation of the controversial law in June, the United States blacklisted Chinese and Hong Kong officials, including the city’s leader, Carrie Lam.

The events, attorneys warned at the time, appeared to place financial institutions in the quandary of having to obey opposing laws.

The securities regulator has since quietly assured global banks that they are unlikely to run into legal trouble by complying with U.S. sanctions, according to the FT, which cited two individuals with direct knowledge of the matter. SFC officials suggested that the clause in question was intended to target those who proactively sought sanctions against the city rather than entities that passively complied with U.S. blacklists.

The officials cautioned that the SFC did not have jurisdiction over the law’s enforcement, however.

“[Banks] are not too worried any longer about a conflict with the [security law],” one of the individuals told the FT.

Yet financial institutions operating in Hong Kong remain uneasy about how future guidance on the security law could impact their legal and compliance departments, according to the report.

“I don’t think the Hong Kong government knows [what to publish], probably because consent from Beijing is missing,” a businessperson involved in industry discussions told the newspaper.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
The Great Western Exit: Why Best Citizens Are Fleeing the Rich World [PODCAST]
The New Robber Barons of Intelligence: Are AI Bosses More Powerful Than Rockefeller?
The End of the Old Order [Podcast]
Britain’s Democracy Is Now a Costume
The AI Gold Rush Is Coming for America’s Last Open Spaces [Podcast]
The Pentagon’s AI Squeeze: Eight Tech Giants Get In, Anthropic Gets Shut Out [Podcast]
The War Map: Professor Jiang’s Dark Theory of Iran, Trump, China, Russia, Israel, and the Coming Global Shock [Podcast]
Labour Is No Longer a National Party [Podcast]
AI Isn’t Stealing Your Job. It’s Dismantling It Piece by Piece.
Lawyers vs Engineers: Why China Builds While America Litigates [Podcast]
Churchill’s Glass: The Drunk, the Doctor, and the Myth Britain Refuses to Sober Up From
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
The Met Gala Meets the Age of Billionaire Backlash
Russian Oligarch’s Superyacht Crosses Hormuz via Iran-Controlled Route
Gunfire Disrupts White House Correspondents’ Dinner as Trump Is Evacuated
A Leak, a King, and a Fracturing Alliance
Inside the Gates Foundation Turmoil: Layoffs, Scrutiny, and the Cost of Reputational Risk
UK Biobank Breach Exposes Health Data of 500,000, Listed for Sale on Chinese Platform
KPMG Cuts Around 10% of US Audit Partners After Failed Exit Push
French Police Probe Suspected Weather-Data Tampering After Unusual Polymarket Bets on Paris Temperatures
News Roundup
Microsoft lost 2.5 millions users (French government) to Linux
Privacy Problems in Microsoft Windows OS
News roundup
Péter András Magyar and the Strategic Reset of Hungary
Hungary After the Landslide — A Strategic Reset in Europe
×