US lawmakers have accused Hong Kong of becoming a significant center for financial crime, citing the city’s increasingly close ties with countries subject to US sanctions, Bloomberg reports.
In a letter to Treasury Secretary Janet Yellen, Representatives John Moolenaar (R-MI) and Raja Krishnamoorthi (D-IL), Chair and Ranking Member of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, respectively, argued that since the imposition of Beijing’s national security law in 2020, Hong Kong has shifted from a trusted global financial center to a key player in what they termed an “authoritarian axis” encompassing China, Iran, Russia, and North Korea.
This assertion raises serious questions, according to the lawmakers, about the appropriateness of continued US policy towards Hong Kong’s financial sector. The letter lists allegations that Hong Kong is facilitating illicit activities including:
• Providing Russia with access to sanctioned Western technology.
• Serving as a base for front companies purchasing banned Iranian oil.
• Aiding in the trade of Russian gold.
• Operating vessels involved in illegal trade with North Korea.
The letter also cites research suggesting that some 40% of goods shipped from Hong Kong to Russia last year were on a high-priority list for US and EU sanctions enforcement, including semiconductors and other technology.
The accusations come amidst a broader deterioration in US-Hong Kong relations, marked by a US crackdown on dissent in the city and increasing legislative efforts to penalize Hong Kong. The House recently passed a bill that could lead to the closure of Hong Kong’s economic and trade offices in the US, a move strongly condemned by Hong Kong officials.
