HONG KONG Law and Practice Contributed by: Gareth Hughes, Emily Lam, Philip Rohlik and Tiffany Wu, Debevoise & Plimpton LLP
8. Compliance Expectations 8.1 Compliance Obligations
an aggregate profit exceeding HKD11 million. Part of the profits was shared with the former SFC manager. No plea has been taken, and the defendants were granted bail pending the next hearing on 26 March 2025. In the mean - time, investigations are ongoing, and the SFC has announced that it is looking into potential violations under the Serious Fraud Office (SFO). 7.6 Level of Sanctions Imposed In a football match-fixing scam, the ICAC has laid charges against four individuals, includ - ing the head coach of a football club in the Hong Kong Premier League, for betting with or conspiracy to bet with a bookmaker. The four individuals pleaded not guilty to the charges and were released on bail pending trial, which is expected to last eight days, with a pre-trial review that is scheduled for 22 January 2025. Following the arrest of 20 people in June 2024 in a corruption investigation concerning annual vehicle examinations, the ICAC has not issued further updates on the progress of the matter, save that the corruption inquiries are ongoing. Similarly, no sanctions have been imposed on those who were arrested by the ICAC for fraudu - lent certification in the excavator and electrical industries, as the investigation is continuing. Given the concerns over the suspected illegal acts revealed in the ICAC investigation, the Labour Department has revoked 100 certificates for excavator operators concerned in the matter. See the Hong Kong Trends and Developments chapter in this guide for details.
POBO does not impose any statutory duty to set up a compliance programme to prevent cor - ruption, and failure to prevent corruption is not a crime in Hong Kong. However, financial institutions may be required under applicable regulations or codes of con - duct to have in place adequate internal con - trols and resources to prevent corruption. For instance, any person regulated by the SFC is required to have internal control procedures and financial and operational capabilities that can be reasonably expected to protect its operations, clients and other licensed or registered persons from financial loss arising from theft, fraud and any other dishonest act, which would include corruption. Failure to comply may result in disci - plinary action being taken against the regulated person. 8.2 Compliance Guidelines and Best Practices Although POBO does not impose a statutory duty to set up a compliance programme, the ICAC nevertheless provides guidance on expec - tations and best practices for corruption preven - tion. Suggested measures include establishing a strong anti-corruption culture within the organi - sation, implementing robust internal control sys - tems to include the adoption and enforcement of effective policies and procedures, providing training on corruption prevention and raising awareness and offering protection to whistle- blowers. 8.3 Compliance Monitorships There is currently no legislation in Hong Kong that provides for compliance monitorship as a part of corporate resolutions. However, it is not
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