U.S. Lawmakers Urge Treasury Secretary to Reevaluate Ties with Hong Kong’s Banking Sector

Lawmakers in the U.S. House of Representatives have called on Treasury Secretary Janet Yellen to reconsider the United States' relationship with Hong Kong’s banking sector, accusing the city of becoming a major hub for money laundering and sanctions evasion.

According to a letter from the bipartisan leaders of the House of Representatives Select Committee on the Chinese Communist Party, Hong Kong has emerged as a central location for violations of U.S. trade controls. These violations reportedly include the export of controlled Western technology to Russia and the establishment of front companies to facilitate the purchase of Iranian oil.

The letter, which is scheduled to be made public on Monday, asserts that Hong Kong has transformed from a globally trusted financial center into a key player in what the lawmakers described as an "authoritarian axis" comprising China, Iran, Russia, and North Korea.

“We must now question whether longstanding U.S. policy towards Hong Kong, particularly towards its financial and banking sector, is appropriate,” the letter stated, as seen by Reuters.

The correspondence was signed by Republican John Moolenaar, chair of the committee, and Raja Krishnamoorthi, the committee’s ranking Democrat. The lawmakers cited research indicating that nearly 40% of goods shipped from Hong Kong to Russia in 2023 were high-priority items, such as semiconductors, which could potentially be used to aid Russia’s ongoing war in Ukraine.

The U.S. Treasury Department has not yet responded to requests for comment from Reuters, and Hong Kong’s trade office in New York was also unavailable for immediate comment.

By fLEXI tEAM