Hong Kong Business Advisory (July 16, 2021)

Date issued: Jul. 16 2021

TURBOFAC Commentary (188 words)

Notes:

1) This advisory, which was published as a coordinated effort between four USG agencies, deals only partially with sanctions-related issues.

The part that is related to OFAC-administered sanctions specifically begins at the heading "Relevant U.S. Authorities for the Imposition of Sanctions." As is common with most "advisories" issued solely by OFAC or jointly with other agencies, the advisory on the Hong Kong does not clarify the scope and operation of any OFAC-administered sanctions provisions. The discussion of the sanctions applicable to Hong Kong-related activities appears to be a general overview of the authorities in place, without the inclusion of anything that could be characterized as "interpretive guidance". Generally, an "advisory" document pertaining to a given sanctioned jurisdiction will put the regulated public "on notice" as to sanctions evasion techniques to be on the lookout for, or otherwise include statements that signal OFAC's due diligence expectations as it relates to the sanctions it administers. Here, the overview of the state of affairs in Hong Kong seems aimed more at promoting a general awareness of the business risks related to activity involving Hong Kong.