WASHINGTON, D.C., May 16, 2025 – The Committee for Freedom in Hong Kong (CFHK) Foundation welcomes new legislation to address money laundering and violations of export controls and sanctions in Hong Kong (H.R. 3264), introduced in the U.S. House of Representatives by Congressmen Joe Wilson (R-SC) and Jimmy Panetta (D-CA). Senators John Curtis (R-UT) and Jeff Merkley (D-OR) have introduced the companion bill in the Senate, the Stop CCP Money Laundering Act (S. 1339).
The bipartisan bills require the Treasury Secretary to submit a determination to the U.S. Congress on whether the U.S. should designate Hong Kong as a Primary Money Laundering Concern (PMLC) jurisdiction. The legislation also requires a detailed justification and report evaluating the extent of the role Hong Kong plays in facilitating the transfer of products and technologies to Russia, Iran, North Korea, and other sanctioned entities, as well as mainland China, in violation of U.S. export controls.
The report would include an assessment of whether Hong Kong’s National Security Law has limited the ability of financial institutions to adhere to global standards for anti-money laundering and know-your-customer procedures, and a description of the level of cooperation between Hong Kong and U.S. authorities in enforcing export control and sanctions regimes.
The bills are an important step towards mitigating Hong Kong’s role in the transfer of funding and restricted technology to Russia, Iran, and North Korea. In the CFHK Foundation’s report, “Beneath the Harbor: Hong Kong’s Leading Role in Sanctions Evasion,” author Samuel Bickett details Hong Kong’s emergence as a global center for illicit finance and how the city’s growing role as a sanctions evasion hub reflects deliberate government policy. This new legislation will help enforce U.S. sanctions and export controls and restrict the funneling of resources through Hong Kong which fuel and support the destabilizing actions of sanctioned regimes.
Samuel Bickett, Hong Kong human rights lawyer and advocate, said:
“Hong Kong is now the hub for some of the world’s most dangerous sanctions evasion networks responsible for arming Russia’s war in Ukraine, fueling Iran’s drone program, and funneling resources to North Korea. Its financial and trade systems are wide open to abuse by authoritarian regimes, and the Hong Kong government has rolled out the welcome mat to this illicit trade. A Primary Money Laundering Concern designation is long overdue. It will send a clear signal to banks: doing business with Hong Kong carries real risk.”
Shannon Van Sant, Strategy and Public Affairs Advisor for the CFHK Foundation, said:
“Hong Kong was once a trusted partner in maintaining global stability. It has now emerged as the global hub for illicit finance and trade, facilitating the flow of military technology, money and resources to sanctioned regimes. We applaud Representatives Wilson and Panetta for acting to stem this flow of illicit trade through Hong Kong and call on the House and Senate to consider these bills in committee as soon as possible.”
