US may sanction banks doing business with those linked to Hong Kong crackdown

US may sanction banks doing business with those linked to Hong Kong crackdown

Financial institutions doing business with those deemed responsible for undermining Hong Kong’s autonomy may face sanctions, the US government said on Wednesday.

The US State Department submitted a report to Congress “identifying foreign persons that the secretary of state, in consultation with the secretary of the Treasury, determined are materially contributing to, have materially contributed to, or attempt to materially contribute to the failure of the government of China to meet its obligations under the Joint Declaration or the Basic Law,” the US Treasury Department said.

The report – required by the Hong Kong Autonomy Act (HKAA) – identifies Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor and nine others, all of whom have been previously sanctioned by the State Department, as responsible for undermining these obligations, adding that it would identify “any foreign financial institution (FFI) that knowingly conducts a significant transaction with” them.