ICAC enhances investigative capability to fight complex financial crimes
2007-9-14
The Independent Commission Against Corruption was determined to combat complex financial crimes through effective law enforcement and enhancing corporate leadership, said Commissioner, Mr Timothy Tong Hin-ming, today (Friday).
Launching the "Ethics –'96 The Core Value of Leadership" 2007 Directors' Forum, Mr Tong said the financial crimes tackled by the ICAC in recent years had become increasingly sophisticated, requiring greater efforts and longer time in investigations.
One of the characteristics of these financial crimes was that they often involved huge amounts of money. For example, in one single ICAC investigation involving three listed companies, the money involved totalled $1.2 billion.
Mr Tong also pointed out that the criminals involved in many of these cases were senior executives, company directors and professionals.
In the first eight months of this year, among 183 people prosecuted in completed private sector cases, about 70 per cent, or 127, were senior executives including chairmen and directors as well as professionals. In the same period last year, 173 persons in the private sector were prosecuted.
Meanwhile, 11 senior executives and professionals associated with three listed companies were convicted and given heavy jail terms of up to 10 years this year. In 2005 and 2006, a total of 14 senior executives and professionals involved in listed company cases landed in jail for committing corruption-related offences.
Although these figures represented a very small percentage of companies and directors in Hong Kong, Mr Tong stressed that Hong Kong would not allow the financial market to suffer because of a few corrupt individuals.
To meet the challenges arising from the complex nature of these crimes and increased cross-boundary businesses, the ICAC would enhance its investigative and professional capabilities, and strengthen co-operation with law enforcement agencies across the bo rder and abroad, Mr Tong stressed.
While hefty sentences served as deterrent, promoting integrity and strengthening corporate leadership were equally important in preventing corporate fraud, he said.
"An analysis of these cases shows that, often, the root of the problem is in the lack of personal governance of one or two corporate leaders," said Mr Tong.
He noted that today's Forum is a landmark event signifying the concerted efforts of the ICAC, the regulators, four professional bodies and six chambers of commerce, in promoting directors' ethics through a sustainable training programme.
The Financial Secretary, Mr John Tsang Chun-wah, officiated at the Opening Ceremony of the Forum and delivered an opening address.
The Group Chairman of the Li & Fung Group, Dr Victor Fung, gave a keynote speech while the Chairman of the Advisory Committee on Corruption, Mrs Laura Cha, delivered a luncheon speech.
Co-organisers of the Forum included the Hong Kong Exchanges and Clearing Limited, the Securities and Futures Commission, the Hong Kong Institute of Directors, the Hong Kong Institute of Certified Public Accountants, the Hong Kong Institute of Chartered Se cretaries and the Law Society of Hong Kong.
The six chambers are: the American Chamber of Commerce in Hong Kong, the Chinese General Chamber of Commerce, the Chinese Manufacturers’ Association of Hong Kong, the Federation of Hong Kong Industries, the Hong Kong Chinese Enterprises Association and the Hong Kong General Chamber of Commerce.
Launching the "Ethics –'96 The Core Value of Leadership" 2007 Directors' Forum, Mr Tong said the financial crimes tackled by the ICAC in recent years had become increasingly sophisticated, requiring greater efforts and longer time in investigations.
One of the characteristics of these financial crimes was that they often involved huge amounts of money. For example, in one single ICAC investigation involving three listed companies, the money involved totalled $1.2 billion.
Mr Tong also pointed out that the criminals involved in many of these cases were senior executives, company directors and professionals.
In the first eight months of this year, among 183 people prosecuted in completed private sector cases, about 70 per cent, or 127, were senior executives including chairmen and directors as well as professionals. In the same period last year, 173 persons in the private sector were prosecuted.
Meanwhile, 11 senior executives and professionals associated with three listed companies were convicted and given heavy jail terms of up to 10 years this year. In 2005 and 2006, a total of 14 senior executives and professionals involved in listed company cases landed in jail for committing corruption-related offences.
Although these figures represented a very small percentage of companies and directors in Hong Kong, Mr Tong stressed that Hong Kong would not allow the financial market to suffer because of a few corrupt individuals.
To meet the challenges arising from the complex nature of these crimes and increased cross-boundary businesses, the ICAC would enhance its investigative and professional capabilities, and strengthen co-operation with law enforcement agencies across the bo rder and abroad, Mr Tong stressed.
While hefty sentences served as deterrent, promoting integrity and strengthening corporate leadership were equally important in preventing corporate fraud, he said.
"An analysis of these cases shows that, often, the root of the problem is in the lack of personal governance of one or two corporate leaders," said Mr Tong.
He noted that today's Forum is a landmark event signifying the concerted efforts of the ICAC, the regulators, four professional bodies and six chambers of commerce, in promoting directors' ethics through a sustainable training programme.
The Financial Secretary, Mr John Tsang Chun-wah, officiated at the Opening Ceremony of the Forum and delivered an opening address.
The Group Chairman of the Li & Fung Group, Dr Victor Fung, gave a keynote speech while the Chairman of the Advisory Committee on Corruption, Mrs Laura Cha, delivered a luncheon speech.
Co-organisers of the Forum included the Hong Kong Exchanges and Clearing Limited, the Securities and Futures Commission, the Hong Kong Institute of Directors, the Hong Kong Institute of Certified Public Accountants, the Hong Kong Institute of Chartered Se cretaries and the Law Society of Hong Kong.
The six chambers are: the American Chamber of Commerce in Hong Kong, the Chinese General Chamber of Commerce, the Chinese Manufacturers’ Association of Hong Kong, the Federation of Hong Kong Industries, the Hong Kong Chinese Enterprises Association and the Hong Kong General Chamber of Commerce.