ICAC and banking sector launch a new practical guide to promote integrity
2001-3-22
The ICAC and the banking sector have jointly launched a practical guide for bank managers under a two-year programme to reinforce the integrity culture within the industry.
The practical guide, launched at the Banking Conference on Ethics in Practice today (Thursday), is a major initiative of the Working Group of Leadership Integrity Programme for Banking Industry, formed in April last year by the ICAC, industry regulator and three other trade bodies.
It addresses legal and ethical issues faced by bank managers in their day-to-day operations and provides them with tips on issues such as conflict of interest, acceptance of advantages and misuse or leakage of confidential information.
A total of 13,000 copies in English will be distributed through members of the Working Group, including the Hong Kong Institute of Bankers, Hong Kong Monetary Authority, The DTC Association and Hong Kong Association of Banks. The ICAC will also distribut e the guide to bank managers through its liaison activities. A Chinese version will be launched in the middle of the year.
The Commissioner of the Independent Commission Against Corruption, Mr Alan Lai Nin, said the practical guide would serve as a useful tool for bank managers to put ethics into practice in the workplace.
He also called upon bank officials to join a network of compliance officers and internal auditors to share their views on corruption and compliance issues in the industry.
Speaking at the close of the conference, Mr Lai said compliance officers, internal auditors and training personnel from more than 30 banks had already pledged their support to this network.
“To ensure that all rules, regulations and guidelines are properly followed, it is important that banks should foster a compliance culture,” he added.
Mr Lai said the Asian financial turmoil had exposed some corruption facilitated frauds in the banking industry with substantial losses to the banks involved, which in some cases to the tune of hundreds of millions of dollars.
From late 1997 to February this year, the ICAC investigated about 250 bank fraud and corruption cases, some of which related to the granting of letters of credit facilities with bogus business transactions.
Investigations had not been easy because many of these scams had elaborate plans and, in some cases, dishonest bank executives were involved in these illegal practices, said Mr Lai.
To tackle the problem, Mr Lai said banks should adopt prudent management on operational risks, strengthen system control as well as internal audit mechanisms.
He said banks should take due care when there were apparently excessive operational risks posed by keen competition and aggressive marketing strategy.
Mr Lai urged bank executives to devote adequate resources to ensure in-house auditors, who would provide a good defense mechanism for the banks, work independently and effectively to guard against malpractices.
Organised by the Working Group, today’s conference drew about 200 senior executives from 60 local and foreign banks as well as professional bodies.
In his opening remarks to the Conference, Working Group chairman, Edwin Lau Chi-kit, stressed the importance of upholding the highest ethical standard in the banking industry in maintaining Hong Kong’s reputation as a leading international financial centre.
“The integrity of our banking system depends on effective supervision and corruption prevention,” remarked Mr Lau, adding that the conference would help enhance vigilance of bank managers to the problem of corruption and related fraud.
The half-day Conference featured keynote speeches on money laundering, letters of credit fraud, partnership with law enforcement agencies and information technology security.
The practical guide, launched at the Banking Conference on Ethics in Practice today (Thursday), is a major initiative of the Working Group of Leadership Integrity Programme for Banking Industry, formed in April last year by the ICAC, industry regulator and three other trade bodies.
It addresses legal and ethical issues faced by bank managers in their day-to-day operations and provides them with tips on issues such as conflict of interest, acceptance of advantages and misuse or leakage of confidential information.
A total of 13,000 copies in English will be distributed through members of the Working Group, including the Hong Kong Institute of Bankers, Hong Kong Monetary Authority, The DTC Association and Hong Kong Association of Banks. The ICAC will also distribut e the guide to bank managers through its liaison activities. A Chinese version will be launched in the middle of the year.
The Commissioner of the Independent Commission Against Corruption, Mr Alan Lai Nin, said the practical guide would serve as a useful tool for bank managers to put ethics into practice in the workplace.
He also called upon bank officials to join a network of compliance officers and internal auditors to share their views on corruption and compliance issues in the industry.
Speaking at the close of the conference, Mr Lai said compliance officers, internal auditors and training personnel from more than 30 banks had already pledged their support to this network.
“To ensure that all rules, regulations and guidelines are properly followed, it is important that banks should foster a compliance culture,” he added.
Mr Lai said the Asian financial turmoil had exposed some corruption facilitated frauds in the banking industry with substantial losses to the banks involved, which in some cases to the tune of hundreds of millions of dollars.
From late 1997 to February this year, the ICAC investigated about 250 bank fraud and corruption cases, some of which related to the granting of letters of credit facilities with bogus business transactions.
Investigations had not been easy because many of these scams had elaborate plans and, in some cases, dishonest bank executives were involved in these illegal practices, said Mr Lai.
To tackle the problem, Mr Lai said banks should adopt prudent management on operational risks, strengthen system control as well as internal audit mechanisms.
He said banks should take due care when there were apparently excessive operational risks posed by keen competition and aggressive marketing strategy.
Mr Lai urged bank executives to devote adequate resources to ensure in-house auditors, who would provide a good defense mechanism for the banks, work independently and effectively to guard against malpractices.
Organised by the Working Group, today’s conference drew about 200 senior executives from 60 local and foreign banks as well as professional bodies.
In his opening remarks to the Conference, Working Group chairman, Edwin Lau Chi-kit, stressed the importance of upholding the highest ethical standard in the banking industry in maintaining Hong Kong’s reputation as a leading international financial centre.
“The integrity of our banking system depends on effective supervision and corruption prevention,” remarked Mr Lau, adding that the conference would help enhance vigilance of bank managers to the problem of corruption and related fraud.
The half-day Conference featured keynote speeches on money laundering, letters of credit fraud, partnership with law enforcement agencies and information technology security.