How SenseTime And a US Law Firm Got Around US Treasury Sanctions

By Charles Rollet, Published Dec 30, 2021, 08:36am EST (Info+)

SenseTime says its US shareholders do not have to divest, despite the US Treasury placing the company on a US investor blacklist earlier this month, showcasing how the firm's US lawyers help it escape the full impact of sanctions.

IPVM Image

SenseTime's lawyers at NYC firm Hughes Hubbard & Reed argue that because the Treasury Department did not explicitly list their Cayman Islands entity, that sanctions do not apply to the IPO.

SenseTime, which IPO'd today after a sanctions-caused delay, has prominent US investors such as Qualcomm, Silver Lake, and Fidelity. Thanks to HHR, SenseTime has also gotten around Commerce Department's Entity List.

In this post, IPVM examines this workaround and the risks and benefits for SenseTime.

Treasury ********* *******

** ******** **, *** ** ******** Department's ****** ** ******* ****** *** Control********** ************* "******* ***** ****** *****", ************ its****** *************** ********* *********, ** *********** ** a ******* ********-********** ******* ******* (****). **** **** "******** ** ****" ** ** ******* ** ***** PRC *********' ****** ***** *** ***** existing ** ********* * **** ** divest.

IPVM Image

SenseTime/HHR ********** ********

***** *** *********,*** ***** * ********** ********* *** ** **** "*** been **********" ******* **** ********** ********* Group *******, *** **** **** **********, while *** ******* ***** ** ** public ** *********'* ****** *******-***** ******, SenseTime ***** ***:

IPVM Image

***** ** **** ****** **** ***,********* ******* ******** **** "**** *** ******** any ****** ****** ******" **** ****** SenseTime ***** *** **** ** *** "existing [**] ************" **** "********** ** own" *** ******:

IPVM Image

VIE ****** ******* *********

******* *** *** ******* ********* ********** from ****** ****** ** *** ***** in *** ******, **** *** ******** sector, *** ********* ******* ** *** outside ******** ***** ********* *** ** a ******** ******** ****** (***) '******' company ********. ***** *** ***** ********* owned ** ********* **** **** ********* with *** *** *******, *** ** not *********** *** ****** ** *** company ******. **** ********* ****** *** tech ***** ** "********** ******* ************ on ******* *********** ** ******** **********", the*** ********.

SenseTime ******** *** ** *********, *** ***** ******** ****

********* ***************** ********* ** "******* *** ********", i.e. *** ** *** ******** *** Cayman ******* ******, ** ** ******* to ******* ** ********* **** *** IPO ******:

IPVM Image

*******, **** **** *** ****** *********'* existing ** ************, ******* **** - according ** ********* - *** ** investors **** ** ************** ** ******. Per *** **********, ******* ** *********/** firms *** ***** ********* ************:

  • ** ********** ******* * *.**% ***** ****** ** SenseTime's *** ******* ***********.
  • ** ******* ********** * *.**% ***** ****** ** SenseTime's *** ******* ***********.
  • ********* ******** **************** * *.**% *****.
  • ************* *********************** * *.**% *****.

Impact ********

**** **********, ********* ** ***, ****** SenseTime ** **** *** ******** ** shareholders. **** ******* * ***** ****** for ***** *********, *.*. ******* ** persons **** ******/********* *** **** ** blacklisted *** ********* *** ** *** "******* *** ************* *******" **** **** ** ** "******** security, ******* ******, *** *******".

*******, ** ** ******* ** *********'* US ************ **** ******** **** **** of ***'* ***** ******** *** **** on ** ***** ******, *** ** the **** ** **** ****** ****** SenseTime's ******* ****** ** ****** ***** with ***'* *********.*********'* ***** **** **** **%** *** **** **** *** *****, indicating ********* ******** ********* *** ****** divestment * **** ********** ******.

Showcases ** ******* *******

** ******,********* ********** ** ***** **** ********* ** technology ******* *** ******** ****** ******* sanctions (***** ***** ** *** '****** List'), ***** ** * ******* ******** by *** **** **** * ********** had **** ***********. ** ***, **** loophole ******* ****** ** *** ******** Department *** *** ** ********* ****** ****** ********* **.

***, **** ***** ****** ** ***, SenseTime **** ** *** **** *** US ********* ******* ***** ***** ** the ********'* *********. **** ******** *** risks *** ********* *** **** ****** questions ***** *** *************/************** ** ** sanctions.

*********

**** ******* *** ** *********, ********, Silver ****, ********, *** *** *******, but *** *** ******* * ********; if *** ***** ** **** ******.

Comments (1)

********** *** ******** **** *** ******* or ****** *** ****** ** *** order *** *** ** ********* *** the ** ******** ********** ** **, especially ***** ** ******** *** ******, original *********, *** ************** ** *** sanction.

**** ***** ** **** ** ********** is *** ***** ********, ****** ****, and ******** ** *** ***** ********* want ** **** ***** *******, ** be ********** **** *** ********** **** could ****** *** **** **** ** business ** ***** ************?

********* **** * *** ** ************* in *** ******* ******* **** ***’* support ********** ********* ***** ****** ** the ********** **** **** ** ********. Even ** *** ********* **** *******, why **** *** ****? ** ********* address *** **** **** *** ****** the *****. **** ** ******** ***** suggest ** ********.

**** **** ** ************ ******** ******** an ******* ********** ** *** ********* companies **** ******** *** ********* ** free ********** *** ********** **** ** a ******** ****, ** ******* ***** rights, **********, ******, *** *******.

* ***** ** **** **** **** come **** ******** *** **** ** their *** ****-***.

** **** ***** ** ****** ** that ******** * ********** ******* ** share **** ******* ********* ********** ** the *** **** ***** ** ******** their ********, ** **** *** ***** that **** ***** ** ***** *** freedom *** ***** ****** ** ***** individual.

******’* ** ** ******* ** **** will ** *** **** ** ***** the ******** ** ****** ** **** world *** ***** *** ***** ********** freedom *** ***** ******, **** **** together *** ********* *** ** ******* members ** *** ** ****** ***** point ** ****.

** **** ** ******** .. *****?

***** *** **** !

Agree: 2
Disagree
Informative
Unhelpful
Funny
Login to read this IPVM report.
Why do I need to log in?
IPVM conducts reporting, tutorials and software funded by subscriber's payments enabling us to offer the most independent, accurate and in-depth information.
Loading Related Reports