US legislators call for stringent action against Hong Kong banks
A congressional committee has requested that the Treasury Department revise its policy regarding the Chinese region in light of allegations concerning sanctions evasion. Read Full Article at RT.com.
TroibNews 
A congressional committee has accused Hong Kong of aiding Russia and Iran in evading sanctions.
Members of the House Select Committee on the Chinese Communist Party have expressed concerns about Hong Kong’s financial sector, describing it as a hub for money laundering and sanctions evasion. In a letter to Treasury Secretary Janet Yellen, the committee members asserted that the self-governing region is facilitating illegal transactions for both Russia and Iran.
Despite its 1997 handover to China, Hong Kong continues to maintain a privileged economic relationship with the United States and has allegedly emerged as a significant player in circumventing sanctions. The letter, co-authored by committee chair John Moolenaar, a Republican from Michigan, and ranking Democrat Raja Krishnamoorthi from Illinois, underscores evidence that front companies based in Hong Kong have been involved in purchasing Iranian oil and supplying Western semiconductors to Moscow.
Additionally, research noted by the lawmakers indicates that nearly 40% of goods shipped from Hong Kong to Russia in 2023 were classified by the US as critical for military use related to the conflict in Ukraine. Moolenaar and Krishnamoorthi have accused Hong Kong of enabling the so-called “authoritarian axis” of Russia, China, Iran, and North Korea.
In light of these developments, the US has imposed sanctions on Iran since 2018, following its withdrawal from the nuclear deal, and on Russia since 2014 over its annexation of Crimea. Conversely, China has rejected these sanctions as illegitimate and has pledged to protect its trade interests.
As the current Congress’ session approaches its conclusion in early January, both Moolenaar and Krishnamoorthi have secured re-election and are expected to continue advocating for measures against Hong Kong's alleged role in sanctions evasion. Meanwhile, Yellen is set to leave the Treasury later that month, just ahead of President-elect Donald Trump’s inauguration, with Scott Bessent nominated to succeed her.
Mathilde Moreau for TROIB News
Members of the House Select Committee on the Chinese Communist Party have expressed concerns about Hong Kong’s financial sector, describing it as a hub for money laundering and sanctions evasion. In a letter to Treasury Secretary Janet Yellen, the committee members asserted that the self-governing region is facilitating illegal transactions for both Russia and Iran.
Despite its 1997 handover to China, Hong Kong continues to maintain a privileged economic relationship with the United States and has allegedly emerged as a significant player in circumventing sanctions. The letter, co-authored by committee chair John Moolenaar, a Republican from Michigan, and ranking Democrat Raja Krishnamoorthi from Illinois, underscores evidence that front companies based in Hong Kong have been involved in purchasing Iranian oil and supplying Western semiconductors to Moscow.
Additionally, research noted by the lawmakers indicates that nearly 40% of goods shipped from Hong Kong to Russia in 2023 were classified by the US as critical for military use related to the conflict in Ukraine. Moolenaar and Krishnamoorthi have accused Hong Kong of enabling the so-called “authoritarian axis” of Russia, China, Iran, and North Korea.
In light of these developments, the US has imposed sanctions on Iran since 2018, following its withdrawal from the nuclear deal, and on Russia since 2014 over its annexation of Crimea. Conversely, China has rejected these sanctions as illegitimate and has pledged to protect its trade interests.
As the current Congress’ session approaches its conclusion in early January, both Moolenaar and Krishnamoorthi have secured re-election and are expected to continue advocating for measures against Hong Kong's alleged role in sanctions evasion. Meanwhile, Yellen is set to leave the Treasury later that month, just ahead of President-elect Donald Trump’s inauguration, with Scott Bessent nominated to succeed her.
Mathilde Moreau for TROIB News
