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Company: Global TaxFin Advisory Group LLC
If your question is about blocked funds that cannot be repatriated because of country Central Bank foreign exchange restrictions, this is an old problem that applies equally to a subsidiary or to a branch. Solutions can be divided into those where the asset remains in the sub/branch but is redeployed in a way that hedges/protects from devaluation (usually at high cost) vs. those that remove the asset from the sub/branch. Removal is a function of the exact legal restrictions imposed and the availability of parallel exchange rate asset swap transactions that typically fall into a grey area of local law (and also entail costs).