Hong Kong condemns US lawmakers' claim as financial hub for illicit financial activities

A government spokesperson called the  allegations ‘malicious’ and ‘grossly unfounded.’

The Hong Kong Special Administrative Region (HKSAR) government has strongly rejected a letter from members of the United States House of Representatives to the U.S. Secretary of the Treasury, dismissing it as baseless slander against Hong Kong's status as an international financial centre.

In the letter by the members of the US House of Representatives, it said they are expressing “deep concern regarding Hong Kong’s increasing role as a financial hub for money laundering, sanctions evasion, and other illicit financial activities”

In a statement released Sunday, a government spokesperson described the allegations in the letter as “malicious” and “grossly unfounded,” accusing U.S. lawmakers of spreading misinformation for political gain.

The HKSAR government emphasised its commitment to enforcing United Nations Security Council (UNSC) sanctions, whilst rejecting unilateral sanctions imposed by other nations. The spokesperson noted that Hong Kong has implemented effective mechanisms to prevent violations of UNSC resolutions, including monitoring suspicious vessels and companies, as well as participating in international treaties such as the Chemical Weapons Convention and the Arms Trade Treaty.

“Our banks and other financial institutions adhere to international standards and best practices, including those on anti-money laundering and counter-financing of terrorism (AML/CFT),” the statement read, highlighting Hong Kong's recognition by the Financial Action Task Force for compliance with global standards.

The government also defended Hong Kong's autonomy under the "one country, two systems" framework, pointing to its independent judiciary and high rankings in the World Justice Project Rule of Law Index. Fundamental rights, including freedom of speech and press, remain protected under the Basic Law, the spokesperson said.

Responding to criticism of Hong Kong’s national security legislation, the government described the measures as necessary to ensure stability and safeguard its constitutional obligations. It noted that similar laws exist in other jurisdictions, including the United States.

Despite international criticism, the government stated that global confidence in Hong Kong's business environment remains strong, citing an American Chamber of Commerce survey where nearly 80% of respondents expressed confidence in Hong Kong’s rule of law.

The government also underscored the substantial economic ties between the U.S. and Hong Kong, highlighting a U.S. trade surplus of US$270b over the past decade and the presence of over 1,200 U.S. companies in the city.

If the US politicians insist on their acts, it will ultimately undermine the mutually beneficial relations between Hong Kong and the US, harming the interests of the US and its companies.” the statement concluded.

The HKSAR government reiterated its commitment to maintaining the city’s reputation as a leading financial hub and called for objective assessments free from political bias.