Russian companies are exploring Hong Kong as an alternative business hub for them to avoid sanctions, news reported recently with extensive discussion.

Sanctions laws and regulations change from time to time, and some may have wider-jurisdictional reach which may expose businesses to compliance and reputational risks if they are considered as being “subject to” the relevant jurisdictions, which goes beyond whether they have physical operations there.

While the risks depend on the legal circumstances at any particular point in time, it is crucial to know business partners and the people running these companies for proper assessment and mitigation of the risks to avoid significant compliance costs and penalties which could be imposed by foreign governments.

CBI offers background checks on businesses and individuals worldwide to identify related parties through official and reliable country-specific channels and screening them against multiple sets of comprehensive databases for sanctions and compliance risks. Our global offerings include extensive searches covering 214 countries, including Russia and other high-risk countries. For more information, contact us at mail@cbil.com.hk .