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The thoughts of an American expat in Hong Kong living on an "underlying island"

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US Rumour-mongering To Isolate Political Opponents

This morning's SCMP brings news of more US rumour mongering in the international financial sector in an attempt to isolate financially their political opponents.

{Hong Kong Monetary Authority's executive director for banking policy, Simon} Topping said local deposit-takers were wary after the blacklisting by the US Treasury Department last September of Macau's Banco Delta Asia as a conduit for North Korean government money.

No evidence was ever presented publically that the Banco Delta Asia was actually involved in the money laundering rumours made by the Busheviks, but that didn't stop the run on the bank and severe economic damage to it. The goal was to make clear to independents, that if they did business with the declared "enemies of the United States", even if was legitimate business, that the Busheviks would seek to ruin them financially through a PR campaign of rumours and innuendo.

But money-laundering experts cast doubt on Mr Topping's assurances, in line with the American CIA's contention on its factbook website that Hong Kong's "modern banking system provides a conduit for money laundering".

Peter Gallo, director of Hong Kong-based Pacific Risk, said: "How can the HKMA know there's no money coming into any financial institution in Hong Kong unless they know the source of every dollar coming in?"

Banks in Hong Kong are required to screen customers against a list of "politically exposed", or sensitive, people, he said. Transactions connected with such characters are reported to the police's Joint Financial Investigation Unit.

Make the innuendo that there may be money laundering going on and then make the subject of the rumours play defense by trying to prove a negative, which is intentionally chosen to be nearly impossible to prove.

Do you think in the name of "small government" and limited government interference in the marketplace that the HKMA should know the source of every dollar coming in to every Hong Kong financial institution? Especially to satisfy the Busheviks' desire to control legitimate international monetary flows that might profit the "enemies of the Party"?

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