The People's Bank of China ("PBC") has recently issued the Circular on Implementing Relevant Resolutions Made by the United Nations Security Council ("UNSC") (the "Circular"), with immediate effect from the date of issuance.
The Circular requires that financial institutions and certain non-financial institutions shall input into the relevant systems information elements about individuals and entities identified in the list affiliated to the UNSC's resolutions in order to initiate retrospective reviews, after receiving a notice about such resolutions forwarded to the Ministry of Foreign Affairs ("MFA"). Where their clients are included in such list, they shall take immediate and necessary measures and report the relevant particulars to the PBC and other related authorities on the same day. These necessary measures shall include but not be limited to suspending the establishment, alteration, deregistration and use of clients' financial accounts, suspending their financial transactions, refusing their request to transfer or exchange their financial assets, suspending the provision of financial services in respect of the export credit loan, guarantee and insurances and legally freezing assets under their accounts. Moreover, the Circular specifies that financial and certain non-financial institutions shall notify their clients if they decide to take the said measures, unless otherwise stipulated in laws, regulations or departmental rules for the confidentiality purpose.