Forty persons, including a former branch manager of the Hongkong & Shanghai Banking Corporation Limited (HSBC), were arrested by the ICAC for their alleged corrupt involvement in conspiring to obtain personal installment loans totalling $5.6 million from the bank by fraudulent means.

The manager is suspected to have been bribed to provide assistance.

The HSBC management earlier referred the case to the ICAC, following an internal investigation which revealed that a number of loan applications approved between March and October last year by a branch manager were allegedly supported by false employment records and fictitious bank documents.

Also arrested in the ICAC operation "Breakthrough", which commenced on Monday (July 9), included two middlemen and 37 loan applicants.

ICAC investigations revealed that the former bank manager was closely associated with the two middlemen, respectively an operator of a forwarding company and an insurance agent.

It was alleged that between March and October last year, the middlemen had referred to the former bank manager 52 personal installment loan applications filed by 51 persons.

Investigations revealed that supporting documents for such applications, including employment records and income proof, were fictitious.

It was also revealed that immediately after they had drawn down the loans approved, the applicants transferred 15 percent to 25 percent of the respective loan amount to the bank accounts allegedly controlled by the syndicate.

The HSBC management offered full assistance to the ICAC during its investigation.

The arrestees will be released on ICAC bail later today. Meanwhile, inquiries in relation to the corruption allegation are continuing.