What does it mean for a bank to loose its USD licence

Three Chinese banks about to lose USD licence, which means that they will not be able to conduct operations in dollars and therefore limited to enter into exchange, international commerce and even maybe loose credit cards as a product.

What many call the dead penalty for a bank is loosing the USD licence which allow them to conduct operations in that currency.

In 2017 three major Chinese banks were accused of cooperating with the. Roth Korean regime in violation of sanctions applicable.

As part of the investigations banks received a number of subpoena request to which they are long overdue for answering.

It has been reported that such banks can be Communications Bank (state owned), China merchants bank and Shanghai Pudong development bank.

Following reports those bank aided in laundering more than $100 million for the North Korean regime.

The contempt ruling may have immediate impact on diplomatic relationships and is an unprecedented action against Chinese institutions.



Jaime Prieto

Mr. Jaime Prieto is a lawyer experienced in Financial Crime, Anti-Money Laundering and Counter Terrorism Financing having extensive professional experience in both public and private sectors. Mr. Prieto has been a Head of Compliance in the European Union, the Americas and the Caribbean for banks, trust companies, asset managers, Big Four audit and advisory firms, RegTechs, government agencies and other types of financial professionals. In addition to his experience, he has been legal and educational chair in several compliance and sectorial organisations and performed as a teacher and speaker for a number of organisations and in several local and international forums. Furthermore, Mr. Prieto is an experienced Money Laundering Reporting Officer anda Data Protection officer with additional experience in risk management.
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