Because after an individual or entity is sanctioned by the United States, the property owned by that individual or entity that is located in the United States, comes from the United States, or is controlled by U.S. individuals (including green card holders) and entities will be frozen.

Foreign banks will not provide services. Chinese banks will not open accounts for sanctioned persons, and sanctioned persons cannot use the services provided by the U.S. financial system and other U.S. intermediary service providers, because no U.S. intermediaries can participate in the entire transaction chain, and U.S. dollars cannot be used for currency settlement.

Foreign banks will no longer provide services. Chinese banks cannot open accounts for sanctioned persons because any bank cannot do without the US dollar settlement system. If it operates in violation of regulations, it will be kicked out of the international currency settlement system.

Extended information:

Persons on the SDN list are called Specially Designated Nationals (SDNs), that is, those whose property and property rights have been frozen under various sanctions programs administered by OFAC Individuals and Entities.

SDN is not allowed to be connected to the U.S. financial system. OFAC and the U.S. State Department also stipulate that foreigners who involve Americans in violating the SDN ban may be subject to civil and criminal penalties under the International Emergency Economic Powers Act.

At the same time, if foreigners conduct significant transactions with entities on the SDN list for certain goods and services, they may also be subject to secondary sanctions by the United States. Therefore, SDN's transactions with non-U.S. persons will also be adversely affected to a certain extent.