US urges to take actions against Hong Kong banks


(MENAFN) The US House Select Committee on the Chinese Communist Party has sent a letter to Treasury Secretary Janet Yellen urging action against Hong Kong’s growing role in money laundering and evading sanctions. The committee, led by Republican John Moolenaar and Democrat Raja Krishnamoorthi, expressed concern that Hong Kong’s financial sector is enabling illegal activities. According to the letter, Hong Kong-based front companies have allegedly been involved in buying Iranian oil and selling Western semiconductors to Russia. These activities, the committee claims, are violating US sanctions imposed on both countries.

The committee's research highlighted that nearly 40% of goods shipped from Hong Kong to Russia in 2023 were items considered by the US to be high-priority for military use, particularly in the ongoing Ukraine conflict. This has raised alarms in Washington, with the committee accusing Hong Kong of becoming a significant player in what it refers to as the “authoritarian axis,” which includes Russia, China, Iran, and North Korea. The lawmakers have questioned whether the longstanding US policy toward Hong Kong, especially regarding its financial and banking sector, remains appropriate given these developments.

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