Background Information

Background Information

The case, first uncovered by a relationship manager from the Mainland branch, was later reported to the Hong Kong branch. In 2013, a Mainland investor who wished to move to Hong Kong by means of capital investment came to know a private banking relationship manager from the Hong Kong branch through a relationship manager from the Mainland branch. In April 2014, she opened a private banking account in Hong Kong with a fund of HK$10 million and the private banking relationship manager from the Hong Kong branch became the investment advisor responsible for managing her Hong Kong bank account.

After learning about the resignation of the private banking relationship manager, the client found the substantial loss recorded in her Hong Kong bank account, and then revealed the matter of paying 20% of the investment profit as extra commission to the private banking relationship manager to the Mainland branch relationship manager. The Mainland bank relationship manager then reported the unusual case to the Hong Kong branch and disclosed the malpractice committed by the defendant. As stipulated in the regulations of the bank, relationship managers would provide investment advices to clients, and only around 0.2% of the transaction value would be charged by the bank as commission.

After the incident was exposed, the client was invited by the ICAC to assist in the investigation upon her arrival in Hong Kong from the Mainland. She later became the second prosecution witness (PW2) and testified against the defendant under an immunity granted by the Department of Justice (DoJ).