When starting your own business in Hong Kong, there are many things to consider such as regulations and policies. Without the hassle and confusion, we can assist your process of opening a business bank account in Hong Kong. Centre O offer commercial bank account introducing services, short listing of which bank(s) to approach, walking you through the whole procedure of company bank account opening as well as liaison with the right officer to get your account setup.
However, before you even start planning for the company bank account setup, one of the most important things to keep in mind is which countries of clients or suppliers you should be working with. There is a list of Countries that are sanctioned. Sanctioned countries have certain restrictions on operating businesses and also transferring funds via your business bank accounts. Hence, a list of the targeted countries was created by the OFAC.
The Office of Foreign Assets Control (OFAC) places and enforces sanctions against targeted countries. The sanctions put in place are based on the foreign trading policies and national security goals. For example, frozen assets, prohibited payments of funds, and prohibited provisions of services can be placed as restrictions. Companies are unable to open their business bank accounts in countries like Hong Kong because they are owned or controlled by, or acting for or on behalf of, targeted countries.
Below with the list the OFAC made of the targeted countries depending on the activities these countries are engaged in. The list of active programs under OFAC are involved in the following activities:
- Conflict Diamonds
- Cyber-related Crimes
- Foreign Election Interference
- Human Rights Abuse (Magnitsky Act)
- Narcotics Trafficking
- Foreign Terrorist Organisations (FTOs) and Specially Designated Global Terrorists (SDGT)
- Weapons of Mass Destruction (WMD) Proliferation
OFAC updates its list on its website as frequently as possible, giving the latest updates. According to OFAC Compliance Guide as of May 31st, 2019, there are currently 19 sanctioned countries. Alongside their statuses that were last updated, the names of the sanctioned countries are listed below.
- Balkans……………………………………………………………………………………………………02/2017
- Belarus…………………………………………………………………………………………………….10/2018
- Burundi……………………………………………………………………………………………………06/2016
- Central African Republic…………………………………………………………………………….12/2017
- Cuba………………………………………………………………………………………………………..02/2018
- Democratic Republic of Congo……………………………………………………………………03/2019
- Iran………………………………………………………………………………………………………….04/2019
- Iraq…………………………………………………………………………………………………………..12/2017
- Lebanon…………………………………………………………………………………………………..07/2010
- Libya………………………………………………………………………………………………………..11/2018
- Nicaragua………………………………………………………………………………………………..04/2019
- North Korea…………………………………………………………………………………………….04/2019
- Somalia…………………………………………………………………………………………………..07/2018
- Sudan & Dufar…………………………………………………………………………………………06/2018
- Syria……………………………………………………………………………………………………….03/2019
- Ukraine/Russia……………………………………………………………………………………….04/2019
- Venezuela……………………………………………………………………………………………….04/2019
- Yemen……………………………………………………………………………………………………04/2015
- Zimbabwe……………………………………………………………………………….……………..04/2017
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