Legislation mandates executive review of Hong Kong’s role in supporting illicit financing and sanctions evasion by U.S. adversaries like Iran and Russia
Washington DC – U.S. Senators John Curtis (R-UT) and Jeff Merkley (D-OR) today introduced the Stop Corrupt Communist Party (CCP) Money Laundering Act, bipartisan legislation to scrutinize Hong Kong’s role in facilitating illicit financial activity and evasions of U.S. export controls and sanctions. With this bill, the Senators aim to hold Hong Kong accountable for its role in enabling criminal activities that benefit adversarial nations, including Russia, Iran, and the Chinese Communist Party.
“Since their takeover in 2020, the Chinese Communist Party has turned Hong Kong into a hub for illicit finance, helping our adversaries sidestep U.S. sanctions and finance their malign actions worldwide,” said Senator Curtis. “The United States cannot allow bad actors to exploit Hong Kong’s financial system to undermine our security, evade our laws, and fuel conflicts against our allies. This bill directs the Administration to take decisive action and hold Hong Kong accountable.”
“As the Chinese government continues stripping Hong Kongers of their autonomy, freedoms, and basic human rights, the United States must unequivocally oppose these abuses. We must also push back on efforts by U.S. adversaries to exploit Hong Kong to evade U.S. sanctions and erode what remains of Hong Kong’s independence,” dijo el senador Merkley. “Our bipartisan effort cracks down on China and Russia’s attempts to weaponize Hong Kong’s status and facilitate illicit money laundering through the city.”
Fondo:
The Economic and Security Review Commission on China has confirmed that “Hong Kong has become a key transshipment node in a global network that assists Russia and other adversaries in evading sanctions and circumventing export controls.” Recent reports indicate that exporters from China and Hong Kong supplied 85 percent of the semiconductors imported by Russia between March 2022 and September 2023—an alarming trend that has continued into 2024.
To address money laundering and export control and sanction violations in Hong Kong, the Stop CCP Money Laundering Act haría:
- Require the Secretary of the Treasury to determine if Hong Kong is a jurisdiction of primary money laundering concern, using detailed justification.
- Require a report from the State Department, in coordination with the Treasury and Commerce Departments, to assess whether financial institutions operating in Hong Kong are able to detect and prevent transactions that facilitate illegal transfers of products, technology, and funds to Russia, Iran, and other sanctioned entities or that violate U.S. export controls and sanctions.
El texto completo del proyecto de ley se encuentra aquí.
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