ESAPA Client eNewsletter - December 2023

Hong Kong SAR

Contributed by Eversheds Sutherland

Recent Update on Sanctions Clause Judgment - Can Financial Institutions Fully Offload the Sanctions Risk in Documentary Credit Transactions onto Its Clients by Sanctions Clauses?

In the Singaporean case Kuvera Resources Pte Ltd v JP Morgan Chase Bank, N.A. [2023] SGCA 28, the Court of Appeal overturned the decision of the High Court, holding that a sanctions clause in the context of a letter of credit should be construed strictly and objectively, whilst reaffirming the underlying nature of documentary credit transactions.

Read the full "Recent Update on Sanctions Clause Judgment - Can Financial Institutions Fully Offload the Sanctions Risk in Documentary Credit Transactions onto Its Clients by Sanctions Clauses?" article here.

Implementation of Phase 2 of Unique Business Identifier and Revision of Specified Forms and Administrative Form

The Hong Kong Government is implementing Phase 2 of the Unique Business Identifier (UBI) system, through which the Business Registration Number is to be adopted as the UBI for different entities including limited companies. This will enhance communication and data exchange across government departments and businesses, and is in line with Hong Kong's position as an international financial centre.

As part of Phase 2, 117 specified forms and an administrative form for filing with the Companies Registry of Hong Kong have been revised for use from December 27, 2023 onwards. Make sure to stay ahead by adopting UBI and using the revised forms for filing.

Read the full "Implementation of Phase 2 of Unique Business Identifier and Revision of Specified Forms and Administrative Form" article here.

HKEX Consultation on GEM Listing Reforms

Recognizing a decline in the number of new listings and funds raised on GEM (formerly known as the Growth Enterprise Market, which is the HKEX’s second board) since 2019, The Stock Exchange of Hong Kong Limited (HKEX) published its long overdue Consultation Paper on September 26 to gather market feedback on proposed listing reforms for GEM. In this article, we outline the key proposals made by the HKEX in its Consultation Paper.

Read the full "HKEX Consultation on GEM Listing Reforms" article here.

China releases Draft Regulations on the Standardisation and Promotion of Cross-Border Data Flow

On September 28, Cyberspace Administration of China (CAC) released the 'Draft Regulations on the Standardisation and Promotion of Cross-Border Data Flow' for public consultation.

The consultation is due to conclude on October 15, 2023. The Draft Regulations propose new exemptions to the current cross-border data transfer requirements, including the CAC security assessment, execution and filing of SCCs, and certification by CAC-accredited agencies.

This article discusses the proposed exemptions and the implications of the Draft Regulations for multinational companies that have been (busily) working towards complying with the then-current cross-border data transfer requirements -- or rather, after the release of the Draft Regulations, those that are now questioning whether they are exempted.

India

Contributed by Khaitan & Co

India’s Digital Personal Data Protection Act 2023

The Digital Personal Data Protection Act 2023 (DPDP 23) was passed by both the houses of the Parliament and received Presidential assent. It was published in the Official Gazette on 11 August 2023.

Central Government will notify the dates on which various provisions of DPDP 23 will come into force.

Read full article here.

RBI Notifies Directions for Regulation of Payment Aggregators – Cross Border

On 31 October 2023, the Reserve Bank of India (RBI) issued the circular on ‘Regulation of Payment Aggregator – Cross Border (PA – Cross Border)’ addressed to all payment system providers and payment system participants. This follows the draft circular on ‘Processing and settlement of small value Export and Import related payments facilitated by ‘Online Export-Import Facilitators’ issued by the RBI on 7 April 2022.

Read full article here.

India AI Report 2023

On 14 October 2023, the Ministry of Electronics and Information Technology published the India AI Report 2023 (Report). The Report is a collaboration of seven working groups which provided practical considerations and recommendations on India's artificial intelligence (AI) ecosystem. The aim is to make 'governance smarter and more data-led'. According to the Report, AI is expected to add USD 967 billion to the Indian economy by 2035 and USD 450–500 billion to India's GDP by 2025 (10% of the country's USD 5 trillion GDP target). The Report builds upon the already existing initiatives such as the Draft National Data Governance Policy 2022, to augment a nationwide AI ecosystem.

India has a mission-centric approach towards building a national AI ecosystem, with the objective of 'AI for All'. The Report is an important development in laying out the infrastructure and recommendations for this ecosystem. Recent measures undertaken by the Government in this domain have placed India at the fifth spot, globally, in the value of private investment in AI and in the number of newly funded AI companies, in the Stanford AI Index Report 2023. In this Ergo, we provide a brief summary of the proposals of the seven working groups towards establishing the AI ecosystem.

Read full article here.

SEBI's Enhanced UBO Disclosure Framework for Select FPIs and the Proposal to Expand Market Access for NRIs and OCIs through IFSC, GIFT City

On 10 August 2023, the Securities and Exchange Board of India (SEBI) introduced an amendment (Amendment) to the SEBI (Foreign Portfolio Investors) Regulations 2019 (FPI Regulations), allowing SEBI the additional right to demand granular disclosure of Ultimate Beneficial Owners (UBOs) based on ownership, economic interests and control for those Foreign Portfolio Investors (FPIs) which meet the criteria specified by SEBI from time to time. Subsequently, SEBI by way of its Circular No. SEBI/HO/AFD/AFD-PoD-2/CIR/P/2023/148 dated 24 August 2023 has outlined an objective criteria for imposing additional disclosure requirements on FPls for identifying and disclosing its UBOs.

Read full article here.

Indonesia

Contributed by SSEK Law Firm

Directorate General of Sea Transportation Reaffirms Requirement to Have Indonesian Shipping Company as Majority Shareholder for Vessel Registration

Following the major change in 2021 to the criteria for the registration of vessels in Indonesia, the Director General of Sea Transportation has reaffirmed that any company that wishes to register a vessel in Indonesia for commercial purposes must have an Indonesian sea transportation company as its majority shareholder.

Read full article here.

New Regulation on Revenue Sharing Funds for Palm Oil Plantations in Indonesia

The Indonesian government recently issued a regulation on revenue sharing funds for palm oil plantations, Government Regulation No. 38 of 2023 dated July 24, 2023, regarding Palm Oil Plantation Revenue Sharing Fund.

Read full article here.

Contributed by Tilleke & Gibbins

Indonesia and South Korea Establish Patent Prosecution Highway

Indonesia and South Korea have opened a patent prosecution highway mechanism that allows applicants to seek patent protection in Indonesia by basing their application on a granted Korean patent. This article lays out how applicants can benefit from the new initiative.

Read full article here.

International

Contributed by Eversheds Sutherland

Mitigating AI Compliance Risks - Eversheds Sutherland AI Mitigator

When developing, using, distributing or implementing AI, you need the information to be able to identify and mitigate risks, including anticipating the key requirements of upcoming regulation across the world, such as the EU’s draft AI Act. To help you navigate this landscape, we have developed the Eversheds Sutherland AI Mitigator.

Read full article here.

Navigating the Evolving Technology Regulatory Landscape - AI Special Edition

Artificial intelligence is increasingly becoming an integral part of our daily lives, and its influence on regulatory frameworks is growing significantly. Our global TMT lawyers have considered a number of trends and developments from around the world on AI and generative AI, such as competition law issues, intellectual property concerns, governance frameworks across the globe, and the impact on the future of work and disputes.

Read full article here.

Global ESG Insights - November edition

In this briefing,it provides the latest edition of our ESG Insights providing you with a summary of the key developments from around the world in October 2023.

Global ESG Insights - September edition

The second edition of our monthly ESG Insights provides you with a summary of the key developments from around the world in August 2023.

Japan

Contributed by The Tokyo—Marunouchi Law Offices

Enhanced Employee Whistleblower Protections in Japan

In recent legislative developments, Japan has made significant amendments to its Whistleblower Protection Act, marking an important shift in the legal landscape governing whistleblower protections in the workplace. These changes, effective from June 2022, particularly affect larger employers (i.e., those with more than 300 employees), reinforcing the importance of whistleblower systems and extending protections to a broader range of individuals.

Read full article here.

Malaysia

Contributed by LAW Partnership

Budget 2024: Key Corporate and Commercial Highlights

Tabled in Parliament today, the national Budget 2024 is the second budget announced by the new Unity Government since its inauguration.

With the allocation of RM 393.8 billion, Budget 2024 is the largest one tabled in the Parliament thus far, exceeding the Budget 2023 of RM388.1 billion. Of this sum, approximately RM 303.8 billion was earmarked for operating expenditure while RM 90 billion was designated for development expenditure including RM 2 billion as contingency savings.

The Budget 2024, as presented by Prime Minister Datuk Seri Anwar Ibrahim, is centred around increasing the country’s revenue base, boosting governance, restructuring of the economy for growth and on improving the living standards of the nation’s citizens.

With numerous initiatives announced by the government, the Corporate, Commercial and M&A Practice Group of LAW Partnership present several key corporate and commercial highlights from the Budget 2024.

Read full article here.

The Impact of AI on Intellectual Property Rights in Malaysia

Artificial Intelligence has emerged as a transformative force across industries, fundamentally altering business operations and reshaping global economies. Malaysia, as a dynamic nation, has also begun to embrace AI technologies to enhance productivity and foster innovation. In this context, AI refers to the development of computer systems with the capacity to perform tasks traditionally reserved for human, including problem-solving, learning, and decision-making. Within the realm of intellectual property, a diverse range of legal safeguards, including copyright and patent, exists to protect the various intellectual creations stemming from human ingenuity. Thus, as AI continues its deep integration into various sectors, it gives rise to compelling questions surrounding intellectual property rights.

Read full article here.

Contributed by MKP

Drone Regulation in Malaysia

The use of unmanned aerial vehicles, or more commonly known as “drones”, are quickly gaining popularity globally. In the Drone Readiness Index 2023 - which measures the extent to which a country has in place the infrastructure and other factors to support drone projects - Malaysia is ranked as the top Southest Asian Country, achieving a 100% readiness rating in 3 out of the 6 categories in which the DRI is measured.

Drones were initially commonly used for aerial photography and videography. However, in recent years, the usage of drones has been extended to agriculture, mapping, forestry, river monitoring, transportation, construction, coastal management, flood management and other types of applications.

In this article here, MKP looks into the relevant laws governing the use of drones in Malaysia and also the main government initiatives to support the growth of drone technology in certain industries.

Nepal

Contributed by Pradhan & Associates

Reinsurance of Insurers Directive 2080 (2023 A.D.)

On May 22, 2023, Nepal Insurance Authority, the regulatory body which regulates insurance business in Nepal, issued Reinsurance Directive 2080 with immediate effect. The Reinsurance Directive has repealed prior Reinsurance of Insurers Directive 2078.

This briefing here aims to highlight major provisions of the Reinsurance Directive primarily applicable to foreign reinsurers and reinsurance brokers.

Pakistan

Contributed by Kabraji & Talibuddin

New Regulations for the Buyback of Shares by Unlisted Companies

On 12 October 2023, the Securities and Exchange Commission of Pakistan enacted the Unlisted Companies (Buy-Back of Shares) Regulations 2023 (the Regulations). The Regulations have been introduced further to Section 88 of the Companies Act 2017 (the Companies Act) pursuant to which a company incorporated under the laws of Pakistan is permitted to buyback its own shares.

Read full article here.

Singapore

Contributed by GT Law LLC

Singapore Legal Updates

The legal updates include the following topics:

• Repeal of Registered Fund Management Companies Regime
• Shared Responsibility Framework for Scam Losses
• Review of the Nominee Director and Shareholder Requirements
• Changes to Government-Paid Paternity Leave and Benefits and Unpaid Infant Care Leave

Read full article here.

Taiwan

Contributed by Lee and Li

Legislature Passes Amendments to Three Anti-Sexual Harassment Laws

In response to the recent reignition of MeToo movement in Taiwan, the legislature passed the amendments to the Gender Equity Education Act on July 28, 2023 and the amendments to the Act of Gender Equality in Employment and the Sexual Harassment Prevention Act, respectively, on July 31, 2023. The key points of the amendments, as presented by the relevant ministries, are summarized in the full article here but the exact language and details of the amendments are still subject to final version announced by the President.

Thailand

Contributed by Tilleke & Gibbins

Thailand: New Order Closes Tax Loophole for Offshore-Sourced Income

An order from Thailand's Revenue Department fundamentally changes how Thailand tax residents’ offshore-sourced income will be taxed. The new rule seeks to ensure consistent tax collection practices and tackle some common tax avoidance strategies.

Read full article here.

Thailand Amends Hotel Regulations

Thailand’s Ministry of Interior has amended the threshold for hotel license exemption and the country's hotel business operation requirements. This article details the key changes and offers a comparison to the previous rules.

Read full article here.

US

Contributed by Eversheds Sutherland

Commerce Issue Final Determination in Solar Panel AD/CVD Circumvention Investigation

On August 17, 2023, the Department of Commerce issued the final determination in its investigations of whether crystalline silicon photovoltaic (CSPV) cells and modules from Cambodia, Malaysia, Thailand, and Vietnam using parts and components manufactured in China and subsequently exported from Cambodia, Malaysia, Thailand, or Vietnam to the United States are circumventing existing US antidumping and countervailing duty (AD/CVD) orders on imports of CSPV cells and modules from China.

Read full article here.

OFAC’s Relaxation of Sanctions on Venezuela’s Oil and Gas Sector Broader than Expected

In response to an agreement reached on Tuesday between President Nicolás Maduro’s representatives and the Venezuelan political opposition about a road map for the 2024 Venezuelan presidential election, on October 18, the Office of Foreign Assets Control issued General License 44, broadly licensing all transactions in Venezuela’s oil and gas sector, including transactions involving Petróleos de Venezuela, S.A., for a six-month period (until April 18, 2024)

Read full article here.

Updata: Your Quarterly Privacy & Cybersecurity Update July - September 2023 | Edition 21

Read the latest Updata, our quarterly newsletter showcasing the latest global Data Privacy and Cybersecurity regulatory and legal developments. This edition details the EU-US Data Privacy Framework and the UK extension, AI and data scraping around the world, information and cybersecurity, security breach management and enforcement, employee monitoring, and more.

Read full article here.

Vietnam

Contributed by Tilleke & Gibbins

Significant Aspects of Vietnam’s New Consumer Protection Law

Vietnam’s new Law on Protection of Consumer Rights contains a number of new and updated provisions compared to the 2010 version of the law. The changes reflect social and technological developments such as e-commerce, data privacy, and influencers, while others modernize rules for matters such as direct selling, contracts, and recalls.

Read full article here.

Contributed by Vision & Associates

Highlighted New Points of Law on Protection of Consumers’ Rights

Law on Protection of Consumers’ Rights No. 19/2023/QH15 has been passed by the National Assembly on 20 June 2023 (“CRPL 2023”). The CRPL 2023 shall take effect on 1 July 2024. Accordingly, Law on Protection of Consumers’ Rights No. 59/2010/QH12 (“CRPL 2010”) shall expire on 1 July 2024, except for the cases specified at Point a, Clause 1, Clause 2, Article 80 of the CRPL 2023.

Read full article here.

Some Notable Contents of the Decree Providing Guidelines for Implementation of the Law on Insurance Business

On 1 July 2023, the Government issued Decree No. 46/2023/ND-CP (“Decree 46”) detailing the implementation of a number of articles of the Law on Insurance Business 2022. Decree 46 took effect on the date of signing; particularly, Article 33, Articles 35 to 54, Articles 81, 82, 83, and Clauses 1 to 6, Article 93 of Decree 46 took effect retroactively on 1 January 2023.

Real full article here.

For further information, please contact: