Chinese banks block Russian companies' accounts over sanctioned addresses

Russian companies are facing account blockages in major Chinese banks due to their registered addresses matching those of organisations under sanctions.

Source: The Moscow Times

Details: Reports indicate that such restrictions have recently become widespread. Major banks like Bank of China and Chouzhou Commercial Bank are actively blocking accounts.

Ivan Tikhonenok, a representative of the legal firm Amond & Smith, stated that blacklists now include a mass registration address for legal entities in Türkiye and approximately 10 addresses in Hong Kong.

Quote: "In Türkiye, companies registered at No: 52 Hasat Sk., Kamara Iç Kapi No: 1, Merkez Mah., Sisli, Istanbul, 34381, Turkey, have been blacklisted. In Hong Kong, well-known addresses like Room 19C Lockhart Centre, 301-307 Lockhart Rd., Wan Chai, Hong Kong, and several others have been flagged." 

At least one address in Russia has also come under restrictions, says Surana Radnaeva, General Director of the legal company Synoruss.

Quote: "This has led to Bank of China now checking not only the address of a company that happens to share an address with a sanctioned entity but also its name, type of activity and general director. During the verification process, account usage is restricted." 

Background: Bank of China, the fourth-largest Chinese bank by assets, has increasingly blocked yuan transfers from countries Russia uses to procure goods.

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