The Bank of China has begun blocking yuan transactions from Russia’s list of «friendly» countries, including Kazakhstan, more often. This happens against the backdrop of strengthened compliance procedures aimed at avoiding secondary sanctions, according to RBC, a Russian news agency. Experts suggest that the exceptional caution of Chinese banks is a response to increased regulatory pressure and tightened international requirements.
Like many other financial institutions across the region, Chinese banks are tightening their control over transactions that might be linked to Russian counterparties or payments related to deliveries to Russia. Indicatively, the Chouzhou Bank and the Bank of China have blocked several such transactions from Kazakhstan due to the absence of direct correspondent relationships with certain banks in the country.
Business representatives and lawyers involved in Chinese partnerships report that such cases are becoming more frequent. Money transfers denominated in yuan have become significantly more difficult to accomplish as Chinese banks try to meet stricter compliance requirements.
Earlier this week, RBC reported that Kazakhstani banks significantly increased payment processing times for Russian businesses, making them wait up to two months before their Kazakhstani counterparts receive payments from Russia.
