Report: Hong Kong now Major Iran Financier 

Hong Kong has become a major financial and logistical hub for Iranian sanctions evasion, according to a new report accusing Hong Kong-based companies of helping Tehran move illicit oil, weapons technology and surveillance tools.

The 26-page report by the Committee for Freedom in Hong Kong Foundation, titled “Oil, Arms, and Cash: How Hong Kong Fuels the Iranian Regime,” is set to be released Monday. It alleges that dozens of companies registered in Hong Kong have helped Iran bypass Western sanctions and generate billions of dollars for the Islamic Revolutionary Guard Corps and its terrorist proxies.

“Simply put, without Hong Kong’s help, Iran would not have the money and the missiles that make it so dangerous,” the report states.

The report says Hong Kong’s financial sector, shipping infrastructure and corporate registration system have made it an attractive base for shell companies used in sanctions-evasion networks. It cites what it describes as easy company registration, globally connected banks, corporate secrecy and limited cooperation with Western law enforcement.

According to the report, Hong Kong-linked companies have helped facilitate shipments of Iranian crude oil to China through shadow fleets, ship-to-ship transfers and falsified cargo documents. Since 2020, the US Treasury Department’s Office of Foreign Assets Control has designated at least 95 Hong Kong-incorporated entities for Iran-related sanctions violations.

One company cited in the report is Petronix Energy Trading Ltd., which US authorities accused in February 2025 of buying hundreds of thousands of metric tons of Iranian crude oil for shipment to China.

The report also alleges that Hong Kong has become a route for moving Western-made electronics and drone components into Iran’s weapons programs. It cites battlefield evidence allegedly linking Hong Kong transshipment networks to components found in Iranian Shahed drones used in Ukraine and the Middle East.

The authors also point to Chinese telecom giant Huawei and its Hong Kong-registered subsidiary Skycom Tech, alleging that the company helped supply Iran with surveillance technology later used to monitor and detain protesters. The allegations draw on previous claims made by the US Justice Department.

The report also refers to HSBC’s past sanctions violations, noting that the bank entered a deferred prosecution agreement with the US Justice Department in 2012 and agreed to pay about $1.9 billion in penalties tied partly to Iran sanctions evasion. HSBC said it has a robust program to prevent financial crime and is committed to complying with applicable laws.

Hong Kong authorities rejected the allegations, saying the government fully enforces United Nations Security Council sanctions but does not implement unilateral sanctions imposed by other countries.

The report argues that Hong Kong already has the legal tools to act against sanctions evasion, but lacks the political will to use them.