Pursuant to the Hong Kong Autonomy Act ("HKAA") Section 5(b), Treasury reported to Congress on foreign financial institutions ("FFIs") that "knowingly conducted a significant transaction" with sanctioned foreign persons.
As previously covered, the Secretary of State named persons determined to have materially contributed to "the failure of the Government of China to meet its obligations under the Joint Declaration or the Basic Law" in the State Department's Section 5(a) Report.
In its report, Treasury stated that, following the investigation, it did not identify any FFI that knowingly conducted a significant transaction with persons identified in the Section 5(a) Report. Treasury further stated that it will continue to (i) monitor for violations, (ii) engage foreign governments and FFIs to ensure HKAA compliance and (iii) update the Section 5(b) Report, resubmitting updates under Section 301 of the United States - Hong Kong Policy Act of 1992.
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