In short
- Zhao and his immediate family are now ineligible for entry into the United States.
- Zhao denies all allegations, demanding the US State Department provide details and allow him to formally respond.
What happened
The US State Department designated Zhao Fugang, director of the Overseas Chinese Service Center in Fiji, for alleged 'significant corruption' involving bribes to Fijian citizens to advance China-based interests. As a result, Zhao and his immediate family are banned from entering the United States.
Zhao has denied all allegations, stating in a letter to the US embassy in Suva that he did not pay bribes or abuse his public position. His lawyers claim they were unaware of any investigation and will seek clarity from the US government.
Zhao abused his public position by paying bribes to Fijian citizens to advance China-based government, business, and criminal interests," said the US statement.
What compliance teams should check
- Screen all transactions and relationships for links to Zhao Fugang and the Overseas Chinese Service Center in Fiji.
- Review customer due diligence for individuals listed on the Australian Criminal Intelligence Commission's registry of Australian Priority Organisation Targets.
- Monitor for typologies involving bribery and foreign influence as described in the US State Department's sanctions notice.
Why it matters
This story highlights the US government's use of sanctions to target alleged corruption and foreign influence linked to China, specifically through individuals like Zhao Fugang. Compliance officers must be alert to evolving typologies involving bribery, transnational crime syndicates, and foreign interference, especially in the Pacific region. The designation also underscores the importance of screening for sanctioned individuals and entities, and responding to new risks associated with politically exposed persons and cross-border criminal networks.
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