In the past few weeks, Hong Kong has been mentioned almost daily across all American media, thanks to Edward Snowden and his leaks about NSA surveillance program, PRISM. The province of Hong Kong and the island province of Macau, both former territories of Western European empires, each enjoy more autonomy than other provinces in China. This autonomy includes greater financial, press, and political freedom. On June 27th, the U.S.-China Economic and Security Review Commission held a hearing on the implications of money laundering in Macau and the press freedom, universal suffrage, and police surveillance in Hong Kong.
China has significant controls over the export of capital in the provinces. The lax gambling laws in Macau, glamorized by the 2012 James Bond film Skyfall, allow for money laundering and illegal exporting of capital. To put into context how much money flows through the island, Macau’s profits were six times higher than that of Las Vegas in 2012; nearly 75 percent of that money came from secretive, private VIP rooms. However, as Co-Chairman William A. Reinsch asked panelist Daniel Glaser, Assistant Secretary for Terrorist Financing at the Office of Terrorism and Financial Intelligence at the Treasury Department: “Can you speak a little about the national security implications about this? Why do we care as a country?” Secretary Glaser explained the importance of working with other finance ministries, including the Chinese Central Banks, to mitigate illicit funding for narcotics organizations, terrorist organizations, transnational crime organizations, and proliferation networks. These financial networks, he elaborated, “enable bad actors to accomplish their objectives.” As the international financial system grows, Sec. Glaser stated the importance of finding these illicit networks and of the U.S. government working with other finance ministries, including China’s, to disrupt them.
Many of the commissioners grilled Mr. Glaser on what insights he had on Chinese government corruption and extortion that is conducted via Macau. However, Mr. Glaser repeated continually that he had no knowledge of illicit activity by corrupt Chinese government officials.
The next panel had much to say on corruption. Reminiscent of the era of when the mafia controlled Las Vegas, the panelist from the Nevada Gaming Commission spoke on money laundering, government corruption, and the infamous Chinese transnational crime organization—the Triads.
The last panel focused on human rights and press freedom in Hong Kong. The panel included the China Director from Human Rights Watch Sophie Richardson and a research analyst from Freedom House, Madeline Earp. Dr. Richardson reported that Hong Kong is the last bastion of standards of free press and democracy in China, but current trends are troubling. “The expansion of surveillance, lack of universal suffrage, reports of government efforts to impose self-censorship on the press all pose a growing threat to Hong Kong citizens’ civil and politic rights,” Dr. Richardson stated. Ms. Earp supported this assertion, highlighting the Chinese Communist Party’s pressure on press coverage. A media company was raided; a magazine editor was beaten up because of his coverage of a dock strike; and an owner of another media company was attacked, according to Ms. Earp.
The CCP’s control of both autonomous provinces’ appears to be growing, both in positive and negative aspects.
Photo: thinboyfatter (cc).
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CCP Regulations of Hong Kong and Macau Expanding
July 11, 2013
In the past few weeks, Hong Kong has been mentioned almost daily across all American media, thanks to Edward Snowden and his leaks about NSA surveillance program, PRISM. The province of Hong Kong and the island province of Macau, both former territories of Western European empires, each enjoy more autonomy than other provinces in China. This autonomy includes greater financial, press, and political freedom. On June 27th, the U.S.-China Economic and Security Review Commission held a hearing on the implications of money laundering in Macau and the press freedom, universal suffrage, and police surveillance in Hong Kong.
China has significant controls over the export of capital in the provinces. The lax gambling laws in Macau, glamorized by the 2012 James Bond film Skyfall, allow for money laundering and illegal exporting of capital. To put into context how much money flows through the island, Macau’s profits were six times higher than that of Las Vegas in 2012; nearly 75 percent of that money came from secretive, private VIP rooms. However, as Co-Chairman William A. Reinsch asked panelist Daniel Glaser, Assistant Secretary for Terrorist Financing at the Office of Terrorism and Financial Intelligence at the Treasury Department: “Can you speak a little about the national security implications about this? Why do we care as a country?” Secretary Glaser explained the importance of working with other finance ministries, including the Chinese Central Banks, to mitigate illicit funding for narcotics organizations, terrorist organizations, transnational crime organizations, and proliferation networks. These financial networks, he elaborated, “enable bad actors to accomplish their objectives.” As the international financial system grows, Sec. Glaser stated the importance of finding these illicit networks and of the U.S. government working with other finance ministries, including China’s, to disrupt them.
Many of the commissioners grilled Mr. Glaser on what insights he had on Chinese government corruption and extortion that is conducted via Macau. However, Mr. Glaser repeated continually that he had no knowledge of illicit activity by corrupt Chinese government officials.
The next panel had much to say on corruption. Reminiscent of the era of when the mafia controlled Las Vegas, the panelist from the Nevada Gaming Commission spoke on money laundering, government corruption, and the infamous Chinese transnational crime organization—the Triads.
The last panel focused on human rights and press freedom in Hong Kong. The panel included the China Director from Human Rights Watch Sophie Richardson and a research analyst from Freedom House, Madeline Earp. Dr. Richardson reported that Hong Kong is the last bastion of standards of free press and democracy in China, but current trends are troubling. “The expansion of surveillance, lack of universal suffrage, reports of government efforts to impose self-censorship on the press all pose a growing threat to Hong Kong citizens’ civil and politic rights,” Dr. Richardson stated. Ms. Earp supported this assertion, highlighting the Chinese Communist Party’s pressure on press coverage. A media company was raided; a magazine editor was beaten up because of his coverage of a dock strike; and an owner of another media company was attacked, according to Ms. Earp.
The CCP’s control of both autonomous provinces’ appears to be growing, both in positive and negative aspects.
Photo: thinboyfatter (cc).
