Hong Kong Is Becoming Hub for Financial Crime, U.S. Lawmakers Say
The U.S. should rethink its close ties with Hong Kong’s banking sector, leaders of an influential House committee say
3 min
Leading China hawks in the U.S. House of Representatives are calling for a rethink on whether Hong Kong should continue to enjoy the cozy banking relationship it has with the U.S., saying the city is becoming a hub for money-laundering and sanctions evasion.
Hong Kong has turned into a major centre for the export of controlled Western technology to Russia; the creation of front companies to buy Iranian oil; the managing of “ghost ships” that serve North Korea, as well as other violations of U.S. trade controls, the bipartisan leaders of the House Select Committee on the Chinese Communist Party said in a letter to Treasury Secretary Janet Yellen .
The letter was signed by Rep. John Moolenaar , a Michigan Republican who chairs the committee, and Rep. Raja Krishnamoorthi , an Illinois Democrat who is the committee’s ranking member. The Wall Street Journal reviewed a draft of the letter, which was publicly released Monday.
“Hong Kong has shifted from a trusted global financial centre to a critical player in the deepening authoritarian axis of the People’s Republic of China, Iran, Russia and North Korea,” the lawmakers said. “We must now question whether longstanding U.S. policy towards Hong Kong, particularly towards its financial and banking sector, is appropriate.”
The lawmakers cited research, for example, that shows that nearly 40% of goods shipped from Hong Kong to Russia in 2023 were high-priority items such as semiconductors that Russia could use to prosecute its war in Ukraine.
Both lawmakers have worked extensively in the past with President-elect Donald Trump ’s pick for secretary of state, Sen. Marco Rubio of Florida, on China-related issues, including efforts to force TikTok’s Chinese owners to sell the app.
The allegation that Hong Kong is a money-laundering hub is unfounded, a spokesman for the Hong Kong government said. The spokesman added that Hong Kong has a vigorous enforcement system to prevent the illegal diversion of strategic commodities. A representative for Yellen didn’t respond to a request for comment.
The two lawmakers, whose committee focuses on competition with China and frequently makes bipartisan calls for a tougher approach to the country, asked Treasury for information on how it intends to combat money-laundering and sanctions evasion that use Hong Kong’s financial system.
Hong Kong, which has a special status within China, has seen its role as a global financial hub increasingly come into question as Beijing has muscled the city closer into its orbit, driving an exodus of expatriates. U.S. officials in particular have condemned Hong Kong authorities’ crackdown on dissidents under a tough national security law, though many Western banks have continued to do some business there.
Last week, a court in Hong Kong sentenced dozens of pro-democracy advocates for what Communist Party leadership viewed as subversion under that law. The Biden administration has called for their immediate and unconditional release. The government of the Hong Kong special administrative region said attacks on the “fair and open” sentencing are smears.
The same day, a Hong Kong government-sponsored financial summit played host to a number of global financial leaders, including Goldman Sachs Chairman David Solomon , Citi Chief Executive Jane Fraser and State Street CEO Ronald O’Hanley , according to a program of the event. Leaders from HSBC , BNP Paribas and other institutions also attended.
Banking leaders didn’t publicly discuss the court proceedings on the summit’s panels. A spokesman for State Street confirmed O’Hanley’s attendance. A spokeswoman for Citi declined to comment. Representatives for the other banks didn’t respond to requests for comment.
Earlier this month, Moolenaar and Krishnamoorthi called on the Biden administration to sanction Hong Kong police, judges and prosecutors for their role in the arbitrary detentions of human-rights activists.
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With US$40 million already committed, the Global Talent Fund is attracting investor attention with a strategy focused on building globally scalable consumer brands alongside high-profile talent.
2 min
A new investment fund targeting celebrity-founded consumer brands has secured US$40 million in commitments and is rapidly approaching its US$50 million fundraising target, signalling growing investor appetite for alternative opportunities beyond traditional asset classes.
The Global Talent Fund, which has a maximum raise of US$100 million, focuses on building and investing in consumer businesses alongside celebrities, athletes, and influential personalities who play an active role as co-founders rather than simply endorsing products.
The strategy is based on the belief that changes in consumer behaviour, particularly the rise of social media and digital engagement, have fundamentally altered how brands are built and scaled.
GTF founding partner Jeremy Hunt, who is helping lead the fund’s strategy, said consumers increasingly feel connected to personalities they follow online and are more willing to support products developed by those individuals.
“Consumers are searching for content to engage with, and when a celebrity they like or follow takes them on the journey of creating a product or brand, they genuinely feel part of that process,” he said.
The fund is targeting high-growth consumer sectors including wellness, hydration, beauty and recovery, areas Hunt believes continue to benefit from strong global demand and ongoing innovation.
Rather than backing celebrity endorsement deals, the fund is seeking businesses where talent is deeply involved in product development, brand creation and long-term growth.
According to Hunt, authenticity remains one of the biggest differentiators between successful celebrity-backed brands and those that fail.
“The consumer can see clearly if someone is simply being paid to promote a product,” he said. “The winners are typically the brands where the celebrity has genuinely helped build the business from the ground up.”
The model has attracted support from several prominent Australian investors and business families, reflecting broader interest in alternative investments with global growth potential.
Hunt said consumer brands offered a level of tangibility that many investors found appealing.
“Consumer brands are what we touch, feel, smell and taste every day,” he said. “Our investors understand the growth potential in the model, but they also want to be part of the journey.”
The fund’s rapid progress towards its fundraising target comes amid growing recognition that celebrity influence, when combined with strong commercial execution and scalable business models, can create significant enterprise value.
With several high-profile celebrity-founded businesses generating billion-dollar exits in recent years, supporters of the strategy believe the opportunity remains in its early stages.
For more information, contact marc@kanerbridge.com.au
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