When asked about Mandelker’s comments, a spokesman for the Hong Kong government said the city “strictly implements the sanction measures decided by the United Nations Security Council (UNSC) and has been staying highly vigilant about activities and suspected cases that may violate UNSC sanctions.”
Hong Kong is governed as a special administrative region of China and operates under its own set of laws and regulations when it comes to the financial and shipping industries.
The city’s lax regulations when it comes to company registration and reporting requirements — a legacy of British colonial rule, analysts say — make it an attractive place to do business but easy for bad actors like North Korea to engage in illicit activities.
“Hong Kong, of course, is an international financial hub and at the same time it has company formation and registration rules that we think need to be stronger,” Mandelker said.
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