Anti-graft efforts backed despite costs
Financial firms in HK look beyond the burden of compliance with British and mainland measures to the long-term benefits of cleaner practices
While financial companies in Hong Kong say anti-corruption measures introduced by the mainland and British governments in recent years have placed an extra burden on them, they believe a healthier business environment will result in the long term.
The mainland has stepped up its efforts to crack down on corruption after President Xi Jinping took power late last year. Luxury gifts and fancy meals for officials are now frowned upon.
Britain's Bribery Act, which took effect on July 1, 2011, prohibits the offering or acceptance of bribes from foreign public and private-sector officials, and lays down strict punishments for any failure by companies to prevent bribery by employees, agents and clients. Penalties include jail sentences of up to 10 years, unlimited fines, confiscation of property and disqualification of individuals from serving as company directors.
David Green, director of Britain's Serious Fraud Office, said the agency was handling 67 cases, including 15 cases under development in its intelligence section. These include possible cases under the Bribery Act.
Green would not be drawn on whether Hong Kong or mainland firms were involved.
While he said there had not been any big prosecutions in the two years since the new law was enacted, he said the statute had an important role to play in helping crack down on corruption.
"We want to establish a culture in which companies do not accept any bribe or corruption practice no matter where they are operating. This would create a healthy business environment for companies to do business around the world," Green told the South China Morning Post on a recent visit to Hong Kong.