28 October 2024 (Ottawa, Canada) – Today, the Canadian Parliament’s Standing Committee on International Trade held a groundbreaking hearing that featured testimony from Samuel Bickett, author of the Committee for Freedom in Hong Kong Foundation report, “Beneath the Harbor: Hong Kong’s Leading Role in Sanctions Evasion.”
Mr. Bickett provided evidence that Hong Kong has now become the preeminent global transshipment center of illicit finance and advanced technology for Russia, Iran, and North Korea, and presented policy options for the Canadian government and international community.
Hong Kong until recently was considered a top-tier global financial center, its influence rivaled only by New York and London. Governed by rule of law, its compliance with international standards made it a trusted partner to the world. But all that has changed, and Hong Kong’s emergence as a global center for illicit finance and trade reflects deliberate government policy. In his testimony, Bickett detailed growing trade between Hong Kong and sanctioned countries and the city’s key role in providing Russia dual-use technology for its war effort.
Canada is a leading jurisdiction for reported suspicious activity related to Russian sanctions evasion, and greater efforts should be taken to crack down on those helping Russia prosecute its unjust war against Ukraine. Last year, Canada revised its laws to allow the government to issue sanctions against third party sanction evaders—so-called ‘secondary sanctions.’ The government should use this new authority to target those in Hong Kong and China responsible for undermining the sanctions program.
The CFHK Foundation is grateful for the strong leadership of Judy Sgro, Chair of the Standing Committee on International Trade in Canada’s House of Commons, for freedom and human rights in Hong Kong and around the world. We look forward to continuing our work together to strengthen resilience and counter Hong Kong’s growing role as a center of illicit trade for sanctioned regimes.
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