‘Ambiguity’ of Hong Kong’s anti-sanctions law will ensure flexibility for banks, government insiders say
- The country’s top legislative body will discuss this week how Hong Kong must enact the national law aimed at countering foreign punitive measures
- ‘One internal assessment is that the more vague the local version of the law remains, the more flexibility we will have during execution,’ insider says
Hong Kong’s anti-sanctions law will allow “ambiguity” ensuring flexibility in how penalties are imposed and keep any disruption to the city’s operations as a global financial hub to a minimum, government insiders have told the Post.
While lawyers who specialise in regulatory affairs warned of damage to investor confidence, one pro-establishment commentator predicted the law would end up benefiting firms by finally ending the volleys of retaliatory punitive measures exchanged by China and the United States.
The National People’s Congress (NPC) Standing Committee kicks off a four-day, closed-door session discussion of a host of draft laws on Tuesday.
The broad law empowers Chinese authorities to seize assets from entities that implement sanctions against the country and allows individuals and companies to seek compensation for discriminatory practices in local courts. Businesses can be held liable if they refuse to help Beijing carry out countermeasures.
That obligation could put financial institutions in “impossible positions” and deal a blow to foreign investors’ confidence, the legal veterans warned.