HONG KONG Trends and Developments Contributed by: Gareth Hughes, Emily Lam, Philip Rohlik and Tiffany Wu, Debevoise & Plimpton LLP
Introduction Established on 15 February 1974, the Independ - ent Commission Against Corruption (ICAC) has been steadfast in its mission to combat corrup - tion through a comprehensive approach that encompasses law enforcement, prevention and education. This multifaceted strategy is designed to cultivate a robust culture of integrity throughout Hong Kong. In this article, the authors will give an overview of recent actions taken by the ICAC in uphold - ing Hong Kong’s reputation as a front runner in tackling corruption, which includes actively forging collaborations with different local and global regulatory agencies, addressing corrup - tion in the construction industry in Hong Kong and shouldering the responsibility to train future leaders in integrity and ethics. Collaborations Hong Kong has witnessed an increase in col - laborative operations between anti-corruption organisations in recent years, spearheaded by the ICAC, and this development appears likely to continue given its successes thus far. Take, for example, some of the significant joint opera - tions that have occurred in the past 12 months, detailed in the following. Insurance Authority and ICAC joint operation against suspected unlicensed sale of insurance policies The Insurance Authority (IA) and ICAC’s first joint operation targeted corrupt conduct in the unlicensed sale of insurance policies. Search warrants were executed by the IA and ICAC on 10 and 11 April 2024 at four separate premises, which led to the arrest of multiple individuals including an individual broker and a referrer. The companies and individuals concerned were sus - pected of having engaged in, or having conspired
with others to engage in, unlicensed regulated activities and the offence of using documents with intent to deceive. Breaches of the Code of Conduct for Licensed Insurance Brokers were also suspected to have been committed. In the aftermath of this successful operation, the ICAC and IA reiterated their joint commit - ment to tackling corruption within the financial sector. The deputy commissioner of the ICAC remarked that “this joint operation showcases our common goal in upholding the integrity of the insurance industry”, while the head of market conduct at the IA looked to the future, explain - ing that “this close collaboration will continue not only through joint enforcement measures but also through industry training via the Hong Kong International Academy Against Corruption”. ICAC, SFC and Macao Judiciary Police joint operation against suspected cross-boundary fraud and misconduct The ICAC, the Securities and Futures Com - mission (SFC) and the Macao Judiciary Police mounted an operation code-named “Demarca - tion” on 19 and 20 August 2024 in relation to sus - pected cross-boundary fraud and misconduct. Senior executives of a listed company in Hong Kong were allegedly involved in fictitious trans - actions and false accounting totalling around HKD120 million. The investigation revealed that the chairman of the listed company, as well as other individuals linked to the company, had allegedly falsified business documents and the accounting records of the company’s subsidi - aries in Hong Kong and Macao. As the opera - tion concerned cross-boundary crimes, the Macao Judiciary Police subsequently launched an investigation into the relevant individuals’ suspected fraud offences, which took place in Macao.
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