Several of China’s major banks have tightened controls on transactions connected to Russia. A leading financial daily reports that Bank of China, which sits among the top four by assets in the Chinese banking system, now asks for details about any ties to the LPR, DPR, Crimea, Iran, North Korea, Cuba, or Syria to validate transfers. The publication describes this as part of a broader risk-screening regime that banks are applying to cross-border flows, even when the counterparties are not physically present in those regions.
Industry insiders note that the enhanced scrutiny often appears in the personal sections of corporate accounts when online banking platforms are used to move money. In practice, this can mean a request for information that goes beyond standard beneficiary data, requiring banks to map out the sender’s and recipient’s affiliations with regions or entities linked to geopolitical tension or sanctions regimes. The goal, as explained by several professionals, is to build a clearer picture of the potential political or military entanglements behind a given payment.
The document under review asks for a range of supplementary information, including whether either party is connected to the Russian armed forces, the military-industrial complex, or a military base. The demand for such specifics is described by observers as a proactive measure to assess compliance risk and to ensure that financial links do not inadvertently facilitate sanctioned activity. In some cases, banks indicate that they will not execute a transfer if the declared relationships align with restricted groups, regardless of the currency involved or the country of origin.
Alexey Poroshin, who heads a prominent First Group enterprise, confirmed that the comprehensive request for transactional details is indeed in circulation. He noted that a bank’s handling of a customer’s assertion that the transaction has no ties to the specified territories or military entities can influence the bank’s liability posture. In effect, the approach is framed by some as a protective buffer against potential regulatory scrutiny from abroad.
Since the start of 2024, Chinese financial institutions have intensified the practice of demanding broader contextual information for payments, even when the deals originate from outside China or involve different currencies. Banks such as Great Wall West China Bank have been observed asking about possible links to the regions and entities named in their checklists, signaling a more aggressive posture toward international payment screening across the sector.
Experts interviewed for the report say that if a transfer touches on the specified regions or entities, the likelihood of a rejection from the Chinese side increases. The trend underscores a growing emphasis on risk management that weighs geopolitical associations as a material factor in payment approval decisions. Analysts caution that while this may raise the bar for due diligence, it can also lead to friction in cross-border commerce where legitimate transactions are misread as high-risk due to ambiguous affiliations.
Meanwhile, observers point to a broader pattern of rising payment refusals among transactions flagged as connected to friendly or allied jurisdictions. The situation illustrates how banks are balancing the pressure to comply with international sanctions regimes against the needs of clients seeking to conduct routine global operations. The evolving stance reflects a shift in risk appetite and an increased reliance on formal documentation to verify compliance in a landscape of heightened geopolitical sensitivity.