The Hong Kong government on Tuesday strongly disapproved of and firmly rejected the remarks of U.S. House of Representatives lawmakers claiming the city has become a top location for money laundering and sanctions evasion.

This comes after the Select Committee on the Chinese Communist Party urged Treasury Secretary Janet Yellen to rethink ties with Hong Kong's banking sector.

"Hong Kong has shifted from a trusted global financial center to a critical player in the deepening authoritarian axis of the People's Republic of China (PRC), Iran, Russia, and North Korea," the Committee said in a letter to Yellen.

It also called on Yellen to reevaluate Hong Kong's unique trade privileges, which treat the financial hub as distinct from the rest of China.

"We must now question whether longstanding U.S. policy towards Hong Kong, particularly towards its financial and banking sector, is appropriate," it added.

The SAR government refuted on Tuesday that the allegations in the letter "have no factual basis and are grossly unfounded."

"The letter is a crude and reprehensible attempt to spread lies and misinformation about Hong Kong for personal political gain."

The spokesman said maintaining the integrity and robustness of the city's financial systems is high on the government's agenda, and banks and other financial institutions adhere to international standards and best practices for anti-money laundering and counter-financing terrorism.

"If the US politicians insist on their acts, it will ultimately undermine the mutually beneficial relations between Hong Kong and the US, harming the interests of the US and its companies," the statement added.

Separately, the Commissioner's Office of the Ministry of Foreign Affairs in Hong Kong also expressed strong disapproval and firm opposition to the remarks made by US lawmakers and opposed the illegal unilateral sanctions.

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Govt condemns malicious slander of HK's international financial hub reputation by US lawmakers