Lawmakers Urge Tougher Stance on Hong Kong's Financial Misdeeds

US legislators raise alarms over Hong Kong's involvement in illicit finance, urging action on money laundering and sanctions evasion. The city, once a trusted financial hub, faces scrutiny over its dealings with sanctioned countries and deteriorating autonomy. Calls for stronger scrutiny and policy reassessment are growing.

US House Select Committee on the Chinese Communist Party Chairperson John Moolenaar and Ranking Member Raja Krishnamoorthi have expressed significant concerns over Hong Kong's deepening role in illicit financial operations. Their official statement underscores issues like money laundering and sanctions evasion through the financial activities linked with Hong Kong.

In correspondence to US Treasury Secretary Janet Yellen, Moolenaar and Krishnamoorthi argued that the 2020 National Security Law shifted Hong Kong from an esteemed global financial hub to a significant component in China's authoritarian strategy. This change and the controversial Article 23's passage have prompted the US to reassess its policy stance towards Hong Kong.

The letter further pointed out that Hong Kong's financial sector is increasingly facilitating banned technology exports to Russia, illegal oil trading with Iran, and managing "ghost ships" for North Korea. Recent data shows significant shipments of sanctioned goods from Hong Kong to Russia, raising alarms for US lawmakers demanding heightened scrutiny.

The lawmakers seek a detailed briefing from the US Treasury on banking relations with Hong Kong, adapted policies, and future actions to curb financial misconduct. Highlighting the threat to global financial systems and US security, they emphasize the importance of stringent US leadership in tackling these challenges.

As the pressure mounts on the US Treasury Department to enhance safeguards against Hong Kong's financial indiscretions, the effectiveness of these measures could profoundly impact international banking and US-Hong Kong diplomatic ties.

(With inputs from agencies.)