US legislator: Hong Kong becomes the Center for Financial Crime

US legislator: Hong Kong becomes the Center for Financial Crime

Hong Kong has developed into a center for money laundering and sanction bypass, warn US legislators and demand a redefination of America's close business relationships with the Asian financial metropolis.

US legislator demand more control

in a letter to the US finance minister Janet Yellen, the bipartisan executives of the Committee for China in the House of Representatives called for a stronger review of the highly estimated financial sector Hong Kong, which forms one pillar of the economy and houses many large US banks. In addition, this sector is more than a fifth of the gross domestic product of the Chinese territory.

illegal practices and technologies

Hong Kong has developed into a “global guide” in illegal practices, including the export of controlled western technologies to Russia, the establishment of mailbox companies for the procurement of Iranian oil and the management of “ghost ships” that take part in the illegal trade with North Korea. Since Beijing passed the National Security Act in 2020, Hong Kong has changed from a trustworthy global financial center to a critical player in the in -depth authoritarian axis between the People's Republic of China, Iran, Russia and North Korea, the legislators emphasized.

Criticism of the existing US policies

"We now have to question whether the long-standing US policies are appropriate to Hong Kong, especially with regard to the finance and banking sector," they added.

consequences of the sanctions

Since the abolition of the special status of Hong Kong under US law by the then President Donald Trump in 2020, dozens of companies based in Hong Kong have suffered US sanctions because they have bypassed extensive measures that were imposed in response to the invasion of Russia in Ukraine. These sanctions concern, among other things, the delivery of critical dual-use goods such as semiconductors.

reaction of the Hong Kong government

Official Hong Kong previously stated that the city had no obligation to implement one -sided sanctions of other countries. This was particularly relevant, as a superyacht, which was sanctioned by the USA, the European Union and the United Kingdom Russian oligarchen in October 2022 in the city set.

claims of the committee

The committee asked the officials of the Ministry of Finance to report on “the current status of American banking relationships to Hong Kong, how our policies were adapted to the changes in the status and attitude of Hong Kong and the measures that the Ministry of Finance is planning to address these risks.”

The power struggle between the USA and China

The letter, signed by the Republican MP John Moolenaar and the democratic MP Raja Krishamoorthi, illustrates the growing review of Hong Kong as part of the tightening power struggle between the USA and

"The idea of Hong Kong as autonomous by China is now a farce.

Report by Chris Lau, Cnn.