3. Corruption pitfalls
Video 10 – The “accidental” client
Case analysis
Ka-ming
- ● Ka-ming should report to the authorities if he suspects that Fernando launders money. If he fails to do so and Fernando’s money-laundering activities are later revealed, he may be liable to prosecution under the Organized and Serious Crimes Ordinance and the Drug Trafficking (Recovery of Proceeds) Ordinance.
- ● Fernando asks Ka-ming to sign the documents on his behalf. Ka-ming should reject this proposal to avoid breaching internal guidelines of the bank.
- ● Ka-ming will violate section 9(3) of the Prevention of Bribery Ordinance and section 123 of the Banking Ordinance if he deceives the bank by submitting documents with a forged signature or false information.
Fernando and Mr Wong
- ● Fernando will contravene the Organized and Serious Crimes Ordinance and the Drug Trafficking (Recovery of Proceeds) Ordinance if he launders money through the purchase of the endowment plan.
- ● Mr Wong will also be liable if he assists Fernando in inducing Ka-ming to participate in the money-laundering scam.
Bank
- ● The bank should have in place internal anti-money laundering measures in accordance with the HKMA’s guidelines. This will help maintain the reputation of Hong Kong as an international financial centre.