Banking & Finance

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Corruption Risks

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Colluding staff solicit or accept advantages from customers or intermediaries for facilitating account opening (e.g. expediting the process, skipping certain checks, or waiving fees).
Compromised bank staff solicit or accept advantages from customers or intermediaries for conniving at the submission of false information or supporting documents (e.g. income proof, employment records, or misrepresentation that the customer has arrived in Hong Kong for account opening) to the bank.
Dishonest staff solicit or accept advantages from customers or intermediaries for assisting them in opening accounts for money laundering or other illicit activities.

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Compromised bank staff solicit or accept advantages from customers for approving unqualified loans or credit facilities.
Compromised bank staff solicit or accept advantages for expediting loan applications, offering more favourable terms, or extending loan repayment schedules.
Colluding bank staff solicit or accept advantages from intermediaries as a reward for assisting their customers in applying for government-guaranteed financing schemes.
Compromised bank staff accept advantages from loan applicants for preparing favourable site inspection or assessment reports.
Dishonest bank staff conspire with intermediaries (e.g. mortgage referral agent) to submit documents containing false information to deceive banks for obtaining ineligible commissions.

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Colluding staff solicit or accept illegal rebates as a reward for promoting the investment or insurance products of, and referring or diverting customers to other banks or financial institutions.
Unscrupulous bank staff deceive customers into taking out insurance policies for personal gain (e.g. sharing commissions with an insurance agent).
Dishonest staff submit application or instruction documents for investment or insurance products containing false information to deceive the banks or financial institutions for personal gain (e.g. earning ineligible commissions).

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Unscrupulous staff solicit bonuses or commissions from clients for managing the clients’ investment portfolios.
Compromised staff accept advantages for favouring particular clients in the allotment or distribution of shares.
Unscrupulous staff solicit or accept advantages for giving priority to the handling of customers’ transactions or providing privileged investment advice.
Dishonest staff perform unauthorised transactions for customers and conceal them by furnishing false records (e.g. monthly statements).
Financial analysts accept advantages for preparing and publishing favourable research or valuation reports on particular stocks.

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Unscrupulous staff furnish false information to facilitate the realisation of funds under credit facilities.
Unscrupulous staff use bogus instruction notes or documents to embezzle funds from clients’ bank accounts.
Securities brokers misappropriate clients’ shares.
Company directors deceive other to obtain sub-underwriting commissions in connection with rights issue, open offers or share placement exercises.

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Bank staff approve applications for loans, letters of credit, mortgages, credit cards, etc. submitted by relatives or close friends.
Procuring staff approve tenders or quotations submitted by relatives and close friends.
Staff develop private business relationships or engage in private financial dealings with clients.
Investment representatives recommend clients to invest in companies in which they have financial interests.
Staff of the research department prepare market research reports in favour of companies in which they have interests.

Resources

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Quick Tips

Handling Bribery Attempts

If you encounter bribery attempt by a third party, please:

Clarify the purpose of suspected corrupt payment with customer/agent/intermediary and try to obtain their contact and personal information.
Arrange the subject person to stay at the branch under safe circumstance.
Report the incident to line/branch manager without delay. Escalate to the Compliance Department for assessment and promptly refer suspected cases to the ICAC.

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Useful Links

Hong Kong Monetary Authority (HKMA)

HKMA, as the primary banking regulator in Hong Kong, provides essential regulatory guidance on bank supervision, licensing and conduct rules, promoting sound bank culture and compliance with supervisory expectations.

The Hong Kong Association of Banks (HKAB)

HKAB, as the leading self-regulatory body representing authorized institutions in Hong Kong, offers valuable industry guidelines, code of banking practice, policy advocacy updates, and resources to support sound banking operations and compliance.

Hong Kong Institute of Banks

HKIB, Hong Kong's leading professional body for bankers, provides essential training programmes, certifications, continuing professional development (CPD), and industry-recognised qualifications that enhance the capabilities of banking practitioners in compliance, ethics and banking operations.

Case Studies

Practical Guides

Integrity Training

The Private Sector Integrity Centre (PSIC) offers free anti-corruption and integrity training to help banks and financial institutions build an ethical corporate culture and prevent corruption and fraud.

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Training Objectives

General Staff

Remain vigilant against corruption risks in daily work

Enhance their knowledge of anti-corruption law

Acquire skills to make ethical decision

Training Objectives

Managers

Recognise their managerial role in preventing corruption

Develop the ability to identify and manage corruption risks in daily operations

Acquire practical tips for managing staff integrity

Training Objectives

Senior Management

Enhance awareness of the importance of ethical leadership

Stay alert to common red flags and corruption loopholes

Adopt best practices for preventing corruption and fostering an ethical culture

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PSIC organises webinars on the “PSIC Channel” for business practitioners across various sectors and industries. Click here to view details of the upcoming webinars and enroll now!

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User-friendly e-learning materials are available:

Unveil the Secret: Integrity Myths in the Banking Industry

Bank on Integrity: eLearning Package for Banking Practitioners

Self-training Module for Mainland Enterprises Planning to be Listed in Hong Kong (Putonghua only)

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Members of professional bodies may obtain continuing professional development (CPD) / continuous professional training (CPT) hours by attending seminars offered by PSIC.

The following professional bodies have arranged CPD / CPT seminars jointly with the PSIC:
Chinese Securities Association of Hong Kong Hong Kong Securities & Futures Employees Union
Hong Kong Securities & Futures Professionals Association
Hong Kong Securities and Investment Institute
Hong Kong Securities Association
Hong Kong Securities Professionals Association
Society of Registered Financial Planners
The Hong Kong Association of Financial Advisors Limited
The Hong Kong Institute of Bankers
The Institute of Securities Dealers Ltd

^＊in alphabetical order of the names of the professional bodies Click here to see our upcoming CPD / CPT seminars for banking and financial professionals.

Click here to see our upcoming CPD / CPT seminars for banking and financial professionals.

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PSIC provides free, tailor-made training for managers and staff of banks.

Please contact us if you wish to arrange integrity and corruption prevention training.

introduction

Corruption in any bank or financial institution may not only jeopardise the interests of various stakeholders, but also lead to financial and reputational losses for the institution and the market as a whole.

The Private Sector Integrity Centre (PSIC) offers free anti-corruption and integrity training to help banking and financial practitioners remain vigilant against corruption risks and uphold high integrity standards. We also provide free corruption prevention advisory services and practical resources to help banks and financial institutions in strengthening safeguards and fostering an ethical culture.

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Industry Tgas

Banking & Finance

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Self-Learning Animation Series - Unveil the Secret: Integrity Myths in the Banking Industry

Banking & Finance

Banking & Finance

Corruption Risks

Account Opening

Credit Facility and Loan Services

Sales Process

Trading and Wealth Management

Misappropriation of Funds

Conflict of Interest

Resources

Other Reference

Handling Bribery Attempts

Hong Kong Monetary Authority (HKMA)

The Hong Kong Association of Banks (HKAB)

Hong Kong Institute of Banks

Integrity Training

Training Objectives

Training Objectives

Training Objectives

Training Objectives

Online Training

E-learning

Joint Training with Professional Bodies and Trade Associations

Tailor-made Training