International scrutiny on Hong Kong's role in global trade and finance has intensified, with the city becoming a focal point for enforcement actions. According to a report from LexisNexis Risk Solutions, at least 20 entities based in Hong Kong were placed on the European Union's blacklist in 2024. These organizations were accused of assisting Russia in bypassing trade restrictions. The EU’s decision was part of its comprehensive effort to dismantle networks channeling prohibited goods to Russia, despite Western embargoes. Simultaneously, other regions such as China, Türkiye, India, Kazakhstan, and the Kyrgyz Republic also faced similar measures.

Meanwhile, the United States is reinforcing its stance through the Office of Foreign Assets Control (OFAC), targeting firms in Hong Kong involved in financial activities and exports tied to restricted goods linked to military operations. Washington has made it clear that companies facilitating the evasion of sanctions will face swift penalties. US authorities have issued warnings to businesses in Hong Kong, emphasizing the importance of compliance to avoid secondary sanctions. This increased oversight poses substantial risks for local enterprises, particularly those active in trade, finance, and technology sectors, which could suffer heavy fines, financial limitations, and damage to their reputation.

In response to the tightening global sanctions landscape, experts in compliance urge Hong Kong-based businesses to enhance their due diligence processes and improve monitoring systems for supply chains and financial dealings. As regulators worldwide intensify their enforcement efforts, the focus on regions like Russia, Iran, and financial crime networks is expected to grow stronger in 2025. Analysts suggest that Hong Kong’s status as an international financial hub will likely lead to greater attention from global watchdogs, especially amid ongoing geopolitical tensions. To navigate this increasingly intricate environment, businesses must adopt robust strategies or risk becoming entangled in future regulatory actions.