Hong Kong has become a center for money laundering and sanctions evasion under the tightening grip of Beijing, US lawmakers have warned, calling for a re-evaluation of America’s close business relationship with the Asian financial hub.

Hong Kong has turned into a hub for many violations of U.S. trade controls, including export of controlled western technology to Russia and the creation of front companies to buy Iranian oil, the bipartisan leaders of the House Select Committee on the Chinese Communist Party said in a letter to Yellen, reviewed by the Journal.

Hong Kong has become a center for financial crimes as Beijing tightened its grip on the city, US lawmakers said, highlighting the worsening ties between the former British colony and Washington.

US lawmakers have urged the government to rethink banking ties with Hong Kong, citing its "increasing role" in money laundering, sanctions evasions and reported funneling of banned technology to Russia.

The Hong Kong government has slammed US lawmakers over claims that the city is playing an “increasing role” as a hub for illicit financial activities, calling the allegations “grossly unfounded.” In a statement released on Tuesday,

The leaders of the US House of Representatives Committee stated that Hong Kong has become a center of financial crime as Beijing has tightened control over the city, according to Bloomberg. Since Beijing implemented the national security law in Hong Kong in mid-2020,