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Washington has slapped sanctions on Wan Kuok-koi, who the US Treasury describes as the leader of China's 14K triad and a member of the Chinese People's Political Consultative Conference.
In response, China said Wan is not a member of the CPPCC, foreign ministry spokeswoman Hua Chunying told a news conference in Beijing.
The sanctions also apply to three entities headed by Wan, who is known as "Broken Tooth" and served more than 14 years in jail in Macau. He was released in December 2012.
The United States also blacklisted one Liberian individual and a Kyrgyz national under executive order 13818, which targets corruption and serious human rights abuse.
Under the sanctions, all property of the three individuals and companies that fall under US jurisdiction are frozen.
The Treasury said it targeted Wan for the 14K triad's involvement in drug trafficking, illegal gambling, racketeering, human trafficking and other criminal activities.
The Treasury also designated three entities owned or controlled by Wan, including the Cambodia-based World Hongmen History and Culture Association. The others are Hong Kong-based Dongmei Group and the Palau China Hung-Mun Cultural Association based in Palau.
It said the World Hongmen group had co-opted elites in Malaysia and Cambodia, continuing a "pattern of overseas Chinese actors trying to paper over illegal criminal activities by framing their actions in terms of China's Belt and Road Initiative" and other major initiatives of the Communist Party.
After the sanctions were announced, Wan posted a message on WeChat, saying: "All the reactionaries are paper tigers." It was a popular phrase from former chairman Mao Zedong to attack America.
Wan has a colorful past and his rise to power in the triad was featured in the 1998 Hong Kong film Casino. He was played by Simon Yam Tat-wah.
There was talk that he was behind a failed attempt to assassinate Macau's Judiciary police director Antonio Baptista with a car bomb. Wan was jailed hours after the incident.
Six triad murders in Macau also occurred within six weeks before his arrest, including that of a marine police officer, a gambling inspector and the driver of Macau's top crime fighter.
Meanwhile, Japanese banks said they will follow US sanctions and not allow transactions with Chief Executive Carrie Lam Cheng Yuet-ngor.
The Japanese government has confirmed that banks with operations in the United States are required to abide by the sanctions imposed by the US government.
The move means Lam's accounts in those banks, if she has any, will be frozen and Lam can no longer open new accounts. But the Japanese authorities did not mention if a traveling ban is imposed on Lam.
Reuters, Wallis Wang and Michael Shum
