Since we're discussing laws, please note one crucial sentence of rules-speak on p. B139:
In a war, you may act "dishonestly" against the enemy, but you will not be happy about it!
The basic premise of
MH is that the PCs are fighting a war. The PCs aren't required to keep the war a secret ". . . or else,"
Mage- or
Vampire-style; they can be completely open about it. It's just that nobody much will believe them. That doesn't make it less of a war, though. I think PK's assertions are entirely reasonable given the campaign frame, which assumes that there's a war going on . . . which pretty much lets hunters with Honesty off the hook as long as they own up and admit "It was demons!" or "It was chupacabras!" when asked. The downside to such admissions ought to be just as big a disadvantage as the downside to always obeying laws in peacetime.