Chinese Financial Institutions’ Legal Countermeasures Under U.S.Sanctions Against North Korea

After World War Ⅱ,economic sanctions centered on financial sanctions became an important way for the United States to implement foreign policies,safeguard national security,and promote values.The nuclear crisis on the peninsula is the main cause of sanctions.As the U.S.economic sanctions against North Korea have been continuously strengthened in recent years,the spillover effect of economic sanctions on third parties has gradually emerged.At the same time,with the deepening of financial globalization and the rapid development of the internationalization of China’s financial industry,the overseas business development of Chinese financial institutions faces multiple risks.The United States is the main practitioner and promoter of economic sanctions,and its sanctions system is relatively mature and constantly improving.By summarizing the legal documents and specific measures concerning sanctions,the dissertation believes,the key to risk prevention of financial institutions lies in the handling of risk customers and transactions.The SDNs(Specially Designated Nationals And Blocked Persons List)issued by various agencies are the focus of the review.By analyzing the reasons for U.S.sanctions against North Korea,studying the development of sanctions and the latest international situation.This dissertation believes that the U.S.sanctions against North Korea will not end in the short term,and that there are so many hidden risks for financial institutions of ’second sanction’.The environment is not optimistic.U.S.unilateral sanctions rely on its US dollar advantage and financial strength,and with long arm jurisdiction and enforcement support,it has become the most powerful foreign policy tool in the United States in addition to military force.There are two main legal risks faced by Chinese financial institutions:the risk of second sanctions and the indirect risk of civil litigation filed by victims.The premise of both is that Chinese financial institutions have been in violation of U.S.sanction regulations,have not exercised due diligence and provided illegal financial services.Based on the analysis of typical cases,this dissertation believes that under the background of the conventionalization of unilateral economic sanctions in the United States,the situation of financial institutions in China is very passive.Reissuance of North Korea Sanctions Regulations(31 CFRPart 510)emphasizes the assistance of financial institutions in supervising and reviewing obligations,increasing the fine liability of financial institutions in violation of the rules of sanctions,and increasing the risk of overseas business.The serial cases of civil action of victims of terrorist attacks have produced demonstrative effects,and extraterritorial jurisdiction and legal interpretation play a decisive role in the trial results.This dissertation believes that China’s financial institutions should raise their awareness of risk prevention,prudent management and compliance management,strengthen the construction of legal response mechanisms,and safeguard their own legitimate rights and interests.At the same time,the relief of unfavorable situations badly requires a national strategy.China should adhere to the position of multilateralism and establish a systematic mechanism against the unilateral sanctions imposed by all countries,which has practical significance in the context of the United States’ current unilateralism in implementing economic hegemony.