Factbox: How financial firms in Hong Kong may be affected by U.S. sanctions

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Factbox: How financial firms in Hong Kong may be affected by U.S. sanctions
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The U.S. has imposed sanctions on Hong Kong's chief Carrie Lam and 10 other top Hong Kong and Chinese officials. The sanctions will freeze any U.S. assets of the officials and generally bar Americans and American companies from doing business with them

FILE PHOTO: A general view of the financial Central district in Hong Kong, China July 25, 2019. REUTERS/Tyrone Siu

Under the law, it is a crime to receive “instructions, control or funding from a foreign country ... to impose sanctions or blockade” against Hong Kong or mainland China. “This is an expansive interpretation and would have immense ramifications on many businesses in Hong Kong,” she added. “To this day, we have not yet seen any enforcement of Article 29 in this way, nor has there been official guidance on this point.”

A blog post by two respected legal scholars published in late July said financial firms would not breach the law “merely by participating in the implementation of the sanctions” but they could become liable in certain exceptional circumstances.

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