Updates on Sanctions Campaign: Developments by Country and Territory
In the last few weeks, Hong Kong Watch has been rallying international support for Hong Kong in the face of the draconian National Security Law, which directly breaches China's obligations under the Joint Declaration and has destroyed the city's autonomy.
We believe that likeminded international partners must coordinate a response to the current crisis, which includes refuge for Hong Kongers in need of a lifeline, diplomacy to pressure the Chinese Government in multinational institutions to change course, and sanctions on the perpetrators of human rights abuses under this new law.
In the case of sanctions, Hong Kong Watch is campaigning for likeminded governments who have raised concerns about the National Security Law to follow through with actions, including:
Introducing Magnitsky style targeted sanctions at the Chinese Communist Party officials, Hong Kong Government officials, members of the Hong Kong Police Force, and the Chinese security officials who violate human rights in Hong Kong, particularly under the new National Security Law.
Working with civil society organisations to create an avenue for Hong Kongers to provide evidence of human rights abuses in Hong Kong.
Endorsing the creation of a United Nations Special Envoy/Special Rapporteur on Hong Kong, who will monitor the situation on the ground and report human rights abuses.
Developments by Country and Territory
UK
The UK adopted a Magnitsky style sanctions regime through the Sanctions and Anti-Money Laundering Act in 2018.
On 6th July the UK Foreign Secretary announced the first round of designations under its post-Brexit Magnitsky sanctions regime, including 5 Russian nationals involved in the mistreatment and death of auditor Sergei Magnitsky, 20 Saudi nationals involved in the death of journalist Jamal Khashoggi, 2 high-ranking Myanmar military generals involved in the systematic violence against the Rohingya people, and 2 organisations involved in the forced labour, torture and murder in North Korea’s gulags.
The UK Foreign Secretary has refused to confirm whether the perpetrators of human rights abuses in China and Hong Kong will be subject to Magnitsky style sanctions in the second round of designations later in the year.
Hong Kong Watch worked with Parliamentarians from across the Houses of Parliament to call for Hong Kong officials to be considered in view of the enactment of the National Security Law.
For further information:
https://www.gov.uk/government/news/uk-announces-first-sanctions-under-new-global-human-rights-regime
https://www.ft.com/content/0453cdd8-fe47-47c6-8748-439c7f1abaa5
USA
The US introduced a Magnitsky Act focused on targeting Russian perpetrators of human rights abuses in 2012. In 2016, the US Government introduced a Global Magnitsky Act which would enact targeted Magnitsky style sanctions on the perpetrators of human rights abuses across the world.
On 7th July the US Congress passed the Hong Kong Autonomy Act. The Act requires the US State Department to annually report to Congress individuals, institutions, and financial institutions that have violated Hong Kong’s autonomy under the Sino-British Joint Declaration and the Hong Kong Basic Law, and requires the President to impose sanctions on those named.
Senators Van Hollen and Toomey initiated the legislation in the Senate, and it was initiated by Rep. Sherman and Yoho in the US House of Representatives.
Hong Kong Watch worked closely with Senator Toomey and Rep. Yoho’s office as the bills were being drafted, and then pushed hard for other offices to support the legislation.
Sanctions for individuals and institutions include:
Prohibition from asset trading in the US, this includes a ban ‘on acquiring, holding, withholding, using, transferring, withdrawing, transporting, or exporting any property that is subject to the jurisdiction of the United States’.
Cancellation and denial of visa entry into the United States.
Sanctions for financial institutions which have assisted the individuals or institutions on the sanctions list, include:
A ban on US financial institutions offering loans or providing credits to named financial institutions on the sanctions list.
Prohibition on allowing sanctioned financial institutions to be a primary dealer of US debt instruments.
Prohibition on sanctioned financial institutions operating as a repository for US government funds.
A ban on participating in foreign exchange transactions in US jurisdictions.
A ban on any financial transactions of credit or payments between sanctioned financial institutions and other financial institutions in US jurisdictions.
A ban on sanctioned financial institutions trading property in US jurisdictions.
Restriction and prohibition on exports, reexports, and the transfer of technology and software between sanctioned financial institutions and other financial institutions in US jurisdictions.
A ban on sanctioned financial institutions investing in equity or purchasing debt in the United States.
A ban on shareholders, corporate officers, or principles of sanctioned financial institutions entering the United States
Imposing individual sanctions on the principle executive officers of sanctioned financial institutions.
Under the Act, the President can terminate or waive sanctions on the individual, institutions, or financial institutions, if it is in the interest of national security. However, Congress can override the President’s waiver by passing a joint-resolution of disapproval in both houses.
For further information on how it would work: https://www.hongkongwatch.org/all-posts/2020/7/4/explainer-understanding-the-hong-kong-autonomy-act-in-practice
Canada
Canada adopted a Magnitsky style sanctions regime through the Justice for Victims of Corrupt Foreign Officials Act in October 2017.
Since 2017, Canada has used its sanctions regime to sanction perpetrators in Russia, South Sudan, Syria, Myanmar, and last year in Venezuela, which included 113 individuals in the Maduro Government.
In November 2019, Hong Kong Watch coordinated a seminar with Canadian Parliamentarians and staffers where a Magnitsky recommendation was accepted by leading members of all three political parties.
Since then, we have continued to work behind the scenes to encourage a range of parliamentarians to continue the campaign.
On 15th June, Kenny Chiu MP introduced a petition calling for the Government to introduce targeted Magnitsky sanctions on the perpetrators of human rights abuses in Hong Kong.
On 24th June, a cross-party group of Canadian Senators wrote to the Canadian Prime Minister Justin Trudeau to ask the Government to sanction the perpetrators of human rights abuses in Hong Kong and those responsible for human rights abuses in China against the Uighurs.
On 3rd July, Garnett Genuis MP, Shadow Minister for Canada-China Relations and a patron of Hong Kong Watch, asked the Canadian Foreign Minister to consider introducing Magnitsky-style targeted sanctions on the perpetrators of human rights abuses in Hong Kong and mainland China.
For further information:
https://www.hongkongwatch.org/all-posts/2019/11/28/canadian-parliamentarians-accept-the-recommendation-to-use-magnitsky-act-to-sanction-hong-kong-officials
https://petitions.ourcommons.ca/en/Petition/Details?Petition=e-2640
https://twitter.com/SenatorHousakos/status/1275814597283504128?s=20
https://twitter.com/GarnettGenuis/status/1279065957424664578?s=20
Australia
The Joint Standing Committee on Foreign Affairs, Trade, and Defence in the Australian Parliament is currently considering the case for the Australian Government adopting a Magnitsky style sanctions regime.
Hong Kong Watch along with other human rights organisations gave written evidence to this inquiry in May 2020, in which we argued for the need for targeted sanctions on the perpetrators of human rights abuses in Hong Kong.
For further information: https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Foreign_Affairs_Defence_and_Trade/MagnitskyAct
EU
Three EU Member States have passed Magnitsky style sanctions regimes in the last few years, they include Estonia, Lithuania, and Latvia.
The EU Parliament passed a resolution in March 2019 calling for Member States to legislate for similar Magnitsky style sanctions regimes.
In a joint-resolution in response to the National Security Law, the EU Parliament called for EU Member States to implement targeted Magnitsky style sanctions on the perpetrators of human rights abuses under the new law.
The joint-resolution called on ‘the Council to and in particular on the incoming Council Presidency to finalise in 2020 the work on an EU Global Human Rights Sanctions Mechanism as supported by the European Parliament in its resolution of 14 March 2019, and calls on the Council to adopt targeted sanctions and assets freezes against Chinese officials responsible for devising and implementing policies that violate human rights; believes this human rights framework could be used to impose Magnitsky-style sanctions on the leaders who conduct this crackdown on Hong Kong and its people and are responsible for serious human rights abuses; stresses that such sanctions should be discussed and, when possible coordinated with democratic partners such as Australia, Canada, the USA, Japan and South Korea.’
For further information:
https://www.europarl.europa.eu/doceo/document/B-8-2019-0179_EN.html?redirect
https://www.europarl.europa.eu/doceo/document/RC-9-2020-0169_EN.html