H.R. 3264 — To require a determination and report relating to money laundering and violations of export controls and sanctions in Hong Kong.

This section requires the Secretary of the Treasury, not later than 180 days after the date of enactment, to submit to the appropriate congressional committees a determination, with detailed justification, on whether reasonable grounds exist to designate Hong Kong as a jurisdiction of primary money laundering concern under 31 U.S.C. 5318A (which authorizes the imposition of up to five special measures on U.S. financial institutions to address such concerns). It further requires the Secretary of State, in coordination with the Secretaries of the Treasury and Commerce and not later than 360 days after enactment, to submit to the appropriate congressional committees a report assessing Hong Kong financial institutions' ability to prevent transactions violating U.S. export controls and sanctions—including (A) Hong Kong's role in transferring restricted products and technologies to Russia, Iran, other U.S. adversaries, and mainland China; (B) its role in sanctions-violating trade and financial transactions; (C) whether Hong Kong's National Security Law limits anti-money laundering and know-your-customer compliance; and (D) U.S.-Hong Kong enforcement cooperation. The section defines appropriate congressional committees as the Senate Committees on Foreign Relations and Banking, Housing, and Urban Affairs; and the House Committees on Foreign Affairs and Financial Services.