May 15, 2021 Report Pursuant to Section 5(b) of the Hong Kong Autonomy Act (Treasury)

Date issued: May. 18 2021

TURBOFAC Commentary (250 words)

Notes:

1) Read in conjunction with The Secretary of State’s October 14, 2020 report to Congress pursuant to section 5(a) of the Hong Kong Autonomy Act.

Section 5(b) of the Hong Kong Autonomy Act provides that:

"Not earlier than 30 days and not later than 60 days after the Secretary of State submits to the appropriate congressional committees and leadership the report under [section 5(a) of the HKAA], the Secretary of the Treasury, in consultation with the Secretary of State, shall submit to the appropriate congressional committees and leadership a report that identifies any foreign financial institution that knowingly conducts a significant transaction with a foreign person identified in the report under [section 5(a) of the HKAA]."

Treasury's report identifies no FFIs that have been determined to "knowingly conduct[] a significant transaction with a foreign person identified in the [State Department's] report under [section 5(a) of the HKAA]."

2) On Dec. 20, 2021, the State Department published its "Update to Report on Identification of Foreign Persons Involved in the Erosion of the Obligations of China Under the Joint Declaration or the Basic Law". That report included names of persons that were limited to those associated with the "Liaison Office of the Central People’s Government in Hong Kong (LOCPG), which is the PRC’s main platform for projecting its influence in Hong Kong". (https://www.state.gov/december-2021-update-to-report-on-identification-of-foreign-persons-involved-in-the-erosion-of-the-obligations-of-china-under-the-joint-declaration-or-the-basic-law/).