US Urges Hong Kong Banks to Curb Russia Exports, Nikkei Says

Jill Disis
·2 min read
5

(Bloomberg) -- US Treasury officials visited Hong Kong in June to urge the city’s central bank, financial institutions and other groups to curb the flow of advanced American-made technology into Russia, the Nikkei reported.

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Three officials from the Treasury Department’s terrorist financing and financial crimes department held meetings on June 15 and 16 in Hong Kong, according to the news organization, which cited unidentified people. They asked banks and regulators to help identify US high-tech items being shipped to Russia via the Asian financial hub, the people said.

The officials also told those in attendance to strengthen their due diligence when dealing with transactions related to items on the US export control list, according to the report.

The meetings took place days before US Secretary of State Antony Blinken visited China, and as concern grows in Washington and Europe over China’s economic relationship with Russia. Western leaders have accused some Chinese companies of aiding Russia’s war effort in Ukraine, leading to debate over potential punishments or other actions.

The US has sanctioned some Chinese companies accused of supplying components eventually used by Russia during the war — restrictions that China has condemned.

The EU’s response has been more muted as the bloc considers how to balance rate relations with China. After drawing up a proposal to restrict exports to Chinese companies for allegedly supplying Russian firms with banned technology, the EU removed some entities from the list after assurances from Chinese officials.

A person familiar with the matter told Bloomberg News last month that the bloc was still considering plans to curb trade with three Hong Kong-based firms, though.

Representatives from HSBC Holdings Plc, Standard Chartered Plc, Bank of China (Hong Kong) and the Hong Kong Monetary Association all attended the meetings in the city with the US representatives, according to the Nikkei. The Association of Certified Anti-Money Laundering Specialists, an industry group, was also there.

Representatives for HSBC and Standard Chartered declined to comment in response to queries from Bloomberg News. An HKMA spokesperson said the organization has dialogues with different stakeholders from time to time and that it is their general practice not to comment on such meetings.

ACAMS told Nikkei it was not able to comment on “closed door” meetings. US officials did not respond to requests by the newspaper for comment.

--With assistance from Denise Wee and Kiuyan Wong.

(Updates with HSBC, StanChart and HKMA responses in second last paragraph.)

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