Hong Kong Freedom Committee Foundation (CFHK) released a new report on Monday, May 11th, detailing how Hong Kong has quietly become a key supporter of the Iranian regime: assisting Iran in evading sanctions, helping Iran fund terrorist proxy organizations, procuring weapons components, and expanding Iran’s domestic surveillance system.
The report titled “Oil, Arms, and Cash: How Hong Kong Fuels the Iranian Regime” highlights Hong Kong entities playing a significant role as facilitators and supporters of the Iranian regime and its destabilizing activities. Hong Kong-owned ships transport illegal Iranian oil, much of which is sold to China; Hong Kong banks launder Iran-related proceeds; Hong Kong companies transport essential technology equipment for manufacturing Iranian drones and missiles used in conflicts in Ukraine and the Middle East; Hong Kong also finances surveillance technology for the Chinese Communist Party, which is then used to monitor the Iranian people; major Hong Kong banks, particularly British-headquartered HSBC and Standard Chartered, have paid billions of dollars in fines for violating prohibitions on doing business with Iran.
The report’s main findings are categorized as follows:
Since 2020, at least 95 Hong Kong entities have been sanctioned by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) for aiding Iranian oil trading and sanctions evasion.
In July 2025, OFAC sanctioned 17 Hong Kong companies in a day, identifying them as part of Iran’s illicit oil trade shadow banking network.
In September 2025, OFAC sanctioned a network involving multiple front companies in Hong Kong engaged in money laundering: laundering over $100 million in cryptocurrency transactions related to Iranian oil revenue, some of which funds terrorist organizations like Hezbollah and other Iranian-backed militias.
The Financial Crimes Enforcement Network (FinCEN) estimated that in 2024 alone, $48 billion of Iranian shadow banking transactions flowed through accounts related to Hong Kong.
In April 2026, OFAC sanctioned a network providing a shadow fleet for Iran, including vessels directly registered in Hong Kong.
The report states that Hong Kong companies have been pivotal transit hubs for dual-use electronics, drone engines, missile guidance components, and centrifuge equipment essential to Iran’s weapons programs.
U.S. indictments and Treasury sanctions documents reveal multiple procurement networks based in Hong Kong supplying Iran’s Ministry of Defense Armed Forces Logistics (MODAFL) with supplies for drone production, radar and fire control systems, and solid-fuel ballistic missiles.
Evidence collected from battlefields in Ukraine and the Middle East shows Western-manufactured components from Hong Kong-transited shipments found in Iranian drones “Shahed” and “Mohajer.”
The report notes that Huawei Technologies Co Ltd used its Hong Kong-based subsidiary Skycom Tech Co Ltd as a corporate tool to provide telecommunications and surveillance equipment to Iran. In 2020, the U.S. Department of Justice accused Huawei of utilizing this equipment to assist the Iranian government in “monitoring, identifying, and detaining” protesters.
Apart from Huawei, there is a broader ecosystem of Chinese surveillance technology suppliers. These vendors, listed on the Hong Kong Stock Exchange or connected to Hong Kong through stock connect mechanisms, provide Iran with surveillance technologies, including cameras, facial recognition systems, internet filtering tools, and deep packet inspection infrastructure. The Iranian regime uses these technologies to monitor its citizens. These Chinese suppliers include ZTE, Hikvision, and Dahua.
CFHK Foundation Chairman Mark Clifford concludes, “Hong Kong-managed shipping transports sanctioned Iranian oil, Hong Kong banks launder the proceeds, and Hong Kong traders provide key components for (Iranian) drones and missiles that have caused deaths in places like Ukraine and the UAE.”
He adds that the Iranian regime is one of the world’s most brutal and deadly, and it is time to end Hong Kong’s role in financing and assisting this regime.