The Hong Kong government has slammed US lawmakers over claims that the city is playing an “increasing role” as a hub for illicit financial activities, calling the allegations “grossly unfounded.”
The Hong Kong government headquarters. Photo: Kelly Ho/HKFP.
In a statement released on Tuesday, the government said it “strongly disapproves of and firmly rejects malicious slander of Hong Kong’s reputation as an international financial centre” in a letter that US lawmakers wrote to treasury secretary Janet Yellen.
In the letter, the politicians said that since the passing of the Beijing-imposed national security law in 2020, Hong Kong had become a “critical player in the deepening authoritarian axis of the People’s Republic of China (PRC), Iran, Russia, and North Korea.”
The lawmakers said the city had been leading the trade of banned Western technology to Russia and set up front companies to buy Iranian oil, among other allegations.
The letter was signed by the Select Committee on the Chinese Communist Party, which comprises lawmakers from the Democratic and Republican parties. According to the committee’s website, the group aims to “build consensus on the threat posed by the Chinese Communist Party and develop a plan of action to defend the American people, our economy, and our values.”
In response, the Hong Kong government said in a statement that the letter was a “reprehensible attempt” to spread lies for political gain.
The US Congress. File photo: Wikimedia Commons.
While the city enforces sanctions imposed by the United Nations Security Council, it does not implement “unilateral sanctions” imposed by other countries, which could constitute a “flagrant violation of the international order,” the statement read.
It continued: “Our banks and other financial institutions adhere to international standards and best practices, including those on anti-money laundering and counter-financing of terrorism.”
‘Near impunity’
In the letter, the US lawmakers highlighted Hong Kong’s political developments since the imposition of Beijing’s national security law in 2020. The lawmakers said the legislation effectively allowed Beijing to act with “near impunity,” influencing the city’s civil liberties, legal proceedings and judicial powers.
The lawmakers called on Yellen to further evaluate US policy in relation to Hong Kong’s financial and banking sectors, specifically how the US intended to further combat money laundering and sanctions evasion through Hong Kong’s financial system.
“Given these escalating concerns, we request that the appropriate U.S. Treasury Department official brief the Select Committee on the current status of American banking relationships with Hong Kong banks, how our policies have shifted to account for the changes in Hong Kong’s status and posture, and the measures the Treasury plans to implement to address these risks,” the letter read.
The Hong Kong government defended the city’s freedoms and rule of law in the statement. It also cited a study by the American Chamber of Commerce in Hong Kong earlier this year showing that close to 70 per cent of respondents indicating that their operations had not been affected by the Beijing-imposed security law.
