CITY OF SECRETS - DRUGS, MONEY AND THE LAW IN HONG-KONG

This paper describes Hong Kong's first successful money laundering cas e, including the key role played by the local subsidiary of the now-de funct Bank of Credit and Commerce International (BCCI). Hong Kong is r evealed to be the organizational and financial linchpin of a heroin sm uggling syndicate stretching from Southeast Asia's Golden Triangle to New York City. In addition, the paper analyzes the development of anti -money laundering legislation in Hong Kong and evaluates the former Br itish colony's prospects for remaining East Asia's premier offshore fi nance center following the territory's return to Chinese sovereignty o n July 1, 1997.