H.R. 3264: To require a determination and report relating to money laundering and violations of export controls and sanctions in Hong Kong.

This bill requires the U.S. government to investigate and report on issues related to money laundering and violations of export controls and sanctions in Hong Kong. Here’s a breakdown of the main components:

Measures to Address Money Laundering

The Secretary of the Treasury must determine, within 180 days of the bill being enacted, whether there are reasonable grounds to classify Hong Kong as a jurisdiction of primary money laundering concern. This classification would indicate significant issues regarding money laundering in the region.

Report on Export Control and Sanctions Violations

The Secretary of State, in coordination with the Secretaries of the Treasury and Commerce, is tasked to produce a report within 360 days. This report must assess how well U.S. and foreign financial institutions in Hong Kong are able to detect and prevent transactions that breach export controls and sanctions set by the U.S.

Key Elements of the Report

The report should cover the following aspects:

• Assessment of Hong Kong’s Role: Evaluating how Hong Kong facilitates the transfer of products and technologies to countries like Russia and Iran, which are seen as adversaries of the U.S., and the extent of violations against U.S. export controls.
• Sanction Violations: Analysis of how trade and financial transactions in Hong Kong violate U.S. sanctions on various countries and entities.
• Impact of National Security Law: Assessing whether Hong Kong's National Security Law has affected the ability of financial institutions to follow global anti-money laundering standards and "know your customer" guidelines.
• Cooperation with U.S. Authorities: Describing the level of cooperation between Hong Kong authorities and the U.S. in enforcing export controls and sanctions.

Definition of Appropriate Congressional Committees

The term "appropriate congressional committees" refers to specific committees in both the Senate and House of Representatives that will receive the results of these investigations and reports:

• Senate: Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs
• House of Representatives: Committee on Foreign Affairs and the Committee on Financial Services

Relevant Companies

• None found