S.1339 - Stop Corrupt Communist Party Money Laundering Act of 2025; Stop CCP Money Laundering Act of 2025 (119th Congress)
Summary
S.1339, the Stop Corrupt Communist Party Money Laundering Act of 2025, directs the Secretary of the Treasury to determine if there are grounds to designate Hong Kong as a primary money laundering concern. It also requires a report assessing Hong Kong's role in facilitating export control and sanctions violations, particularly concerning transfers to countries like Russia and Iran.
The bill mandates collaboration between the Secretary of State, the Secretary of the Treasury, and the Secretary of Commerce to produce this report. The report will evaluate the impact of Hong Kong's National Security Law and Safeguarding National Security Ordinance on financial institutions' ability to adhere to anti-money laundering and know-your-customer standards.
Finally, the bill seeks to understand the level of cooperation between Hong Kong and US authorities in enforcing export control and sanctions regimes.
Expected Effects
The bill's enactment would likely lead to increased scrutiny of financial transactions involving Hong Kong. This could result in stricter enforcement of existing sanctions and export controls.
It may also lead to the designation of Hong Kong as a jurisdiction of primary money laundering concern, triggering further regulatory actions. The bill aims to curtail the flow of funds and technology to adversarial nations through Hong Kong.
Potential Benefits
- Enhanced national security by hindering the transfer of sensitive technologies and funds to adversaries.
- Strengthened enforcement of export controls and sanctions, promoting compliance.
- Increased transparency in financial transactions involving Hong Kong.
- Potential for improved cooperation between Hong Kong and US authorities in combating financial crimes.
- Reduced risk of US financial institutions unknowingly facilitating illegal activities.
Potential Disadvantages
- Potential for strained relations with China and Hong Kong.
- Increased compliance costs for US and foreign financial institutions operating in Hong Kong.
- Possible negative impact on Hong Kong's economy as a financial hub.
- Risk of retaliatory measures from China.
- Potential for unintended consequences due to the complexity of international finance.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the US Constitution's broad goals of providing for the common defense and promoting the general welfare, as stated in the Preamble. Congress has the power to regulate commerce with foreign nations (Article I, Section 8, Clause 3) and to enact laws necessary and proper for carrying out its enumerated powers (Article I, Section 8, Clause 18).
The bill's focus on national security and preventing financial crimes falls within the scope of these constitutional powers. The reporting requirements imposed on the executive branch are consistent with Congress's oversight role.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).