No Result
View All Result
SUBSCRIBE | NO FEES, NO PAYWALLS
MANAGE MY SUBSCRIPTION
NEWSLETTER
Corporate Compliance Insights
  • Home
  • About
    • About CCI
    • CCI Magazine
    • Writing for CCI
    • Career Connection
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Library
    • Download Whitepapers & Reports
    • Download eBooks
    • New: Living Your Best Compliance Life by Mary Shirley
    • New: Ethics and Compliance for Humans by Adam Balfour
    • 2021: Raise Your Game, Not Your Voice by Lentini-Walker & Tschida
    • CCI Press & Compliance Bookshelf
  • Podcasts
    • Great Women in Compliance
    • Unless: The Podcast (Hemma Lomax)
  • Research
  • Webinars
  • Events
  • Subscribe
Jump to a Section
  • At the Office
    • Ethics
    • HR Compliance
    • Leadership & Career
    • Well-Being at Work
  • Compliance & Risk
    • Compliance
    • FCPA
    • Fraud
    • Risk
  • Finserv & Audit
    • Financial Services
    • Internal Audit
  • Governance
    • ESG
    • Getting Governance Right
  • Infosec
    • Cybersecurity
    • Data Privacy
  • Opinion
    • Adam Balfour
    • Jim DeLoach
    • Mary Shirley
    • Yan Tougas
No Result
View All Result
Corporate Compliance Insights
Home Governance

Hong Kong’s Anti-Bribery Laws Under Scrutiny as Former Chief Executive is Charged

by Wendy Wysong
October 30, 2015
in Governance
Hong Kong’s Anti-Bribery Laws Under Scrutiny as Former Chief Executive is Charged

The prosecution this month of former Chief Executive Donald Tsang Yam-kuen on two charges of misconduct in public office has highlighted what has been described as a “fundamental defect” in Hong Kong’s main anti-corruption legislation, the Prevention of Bribery Ordinance (POBO). The charges related to the failure to file conflict-of-interest declarations to the Executive Council concerning a lease on a penthouse flat in Shenzhen and alleged dealings with an interior designer. The maximum penalty for each charge is seven years’ imprisonment. The charges come less than a year after Hong Kong property tycoon Thomas Kwok and Rafael Hui, the former Chief Secretary for Administration (and Tsang’s deputy from 2005-2007), were imprisoned for bribery.

Mr. Tsang was not prosecuted, however, for taking several trips on private jets and luxury yachts with business tycoons, which he later said he paid for but received at a significant discount. In explaining the apparent omission, the Hong Kong Department of Justice (DOJ) said there had been both a lack of evidence and no apparent breach of relevant laws.

An Omission in the POBO

The POBO’s rules against the giving and receiving of gifts do not apply to the Chief Executive.

Section 3 of the POBO prohibits the solicitation and acceptance of an advantage by a prescribed officer without the permission of the Chief Executive, however the Chief Executive himself is not covered. Under section 8, anyone who offers an advantage to a prescribed officer is guilty of an offence, but again the Chief Executive is exempt.

“Advantage” is defined as gifts, loans, fees, rewards or commissions and any other service or favor. Sea, air and overland journeys are included in the definition of advantages that can be authorized by the Chief Executive. The definition of “advantage” excludes “entertainment,” which is defined as “the provision of food or drink, for consumption on the occasion when it is provided, and of any other entertainment connected with, or provided at the same time as, such provisions.”

Sections 4 and 5 do cover the Chief Executive. Section 4 makes it illegal for the Chief Executive, without lawful authority or reasonable excuse, to solicit or accept an advantage as an inducement or reward for his performing or abstaining from performing any act in his capacity as Chief Executive, whilst section 5 states that it is unlawful for anyone to offer an advantage to the Chief Executive, without lawful authority or reasonable excuse, as an inducement or reward for the Chief Executive giving assistance with the procuring of contracts with public bodies.

The evidentiary challenge for prosecutors is clear: to establish a POBO violation, the prosecutor must that prove that the payments or advantages were given or accepted for a purpose connected with the recipient’s official duties.

A Call for Change

An attempt to amend the law in 2008 was met with strong opposition from the then-Chief Secretary Henry Tang Ying-yen. In 2012, a committee recommended that the Chief Executive be brought within the scope of the Ordinance. The report said it was wrong for the Chief Executive to be “above the law” and that the committee saw “no justification for exempting the chief executive from the statutory regime to which politically appointed officials and civil servants are subject. Indeed, the high constitutional status of the chief executive makes it all the more important that he sets a good example for all, especially politically appointed officials and the civil service which he leads.”

The present Chief Executive, Leung Chun-ying, has refused to say whether his administration would seek to close the loophole. A statement by the office of the Chief Secretary for Administration said since “the recommendations on the revisions to the Prevention of Bribery Ordinance have constitutional, legal and operational implications and may have an impact on the existing (Ordinance), the government needs to handle them prudently and study them in an in-depth and holistic manner.”

Contrast with UK

The situation in Hong Kong is in marked contrast to that in other comparable jurisdictions. The latest edition of the United Kingdom’s Ministerial Code states that “ministers should not accept any gift or hospitality which might, or might reasonably appear to, compromise their judgement or place them under an improper obligation.” As part of the “seven principles of public life,” the “integrity” principle says that “holders of public office should not place themselves under any financial or other obligation to outside individuals or organisations that might seek to influence them in the performance of their official duties.” As for travel, the Code says that “offers of free travel should not normally be accepted. The only exception to this is in the case of an offer of transport from an overseas government provided no undue obligation is created.” A similar code exists in Singapore, which stresses that a minister “must scrupulously avoid any actual or apparent conflict of interest between his office and his private financial interests.”

Increase in Serious Fraud

The number of serious fraud cases involving money laundering in Hong Kong has soared, with nine cases being reported in the first half of this year alone, involving HKD 456 million (approximately USD 59 million), compared with HKD 245 million (approximately USD 32 million) in the whole of 2014. Police have explained the rise by an increase in the number of non-locals coming into Hong Kong to open bank accounts with fake documents.

This and the controversy over the POBO exemption threatens to tarnish Hong Kong’s reputation as a city that has cleaned itself up in recent years partly through the vigorous attention of the ICAC in pursuing wrongdoers at all levels of public life. According to Transparency International’s Corruption Perceptions Index 2014, Hong Kong is one of the least corrupt countries in the world, ahead of the United States, France, and Italy. Hong Kong’s lawmakers and judiciary will be keen to ensure that it retains and consolidates its position in this respect as further legislative amendments are considered.


Previous Post

Blackstone Group: Riddle of Ethical Dilemmas

Next Post

Risk Management: Watch Your Stars and Rainmakers

Wendy Wysong

Wendy Wysong

Wendy L. Wysong is a partner at Steptoe & Johnson. She served previously as a litigation partner with Clifford Chance, offering clients advice and representation on compliance and enforcement under the Foreign Corrupt Practices Act, the Arms Export Control Act, International Traffic in Arms Regulations, Export Administration Regulations, and OFAC Economic Sanctions. She was appointed by the State Department as the ITAR Special Compliance Official for Xe Services (formerly Blackwater) in 2010. Wendy combines her experience as a former federal prosecutor with the United States Attorney for the District of Columbia for 16 years with her regulatory background as the former Deputy Assistant Secretary for Export Enforcement at the Bureau of Industry and Security, U.S. Department of Commerce. She managed its enforcement program and was involved in the development and implementation of foreign policy through export controls across the administration, including the Departments of Justice, State, Treasury and Homeland Security, as well as the intelligence community. Wendy received her law degree in 1984 from the University of Virginia School of Law, where she was a member of the University of Virginia Law Review.

Related Posts

robot nurturing a good idea

Innovation vs. Compliance: In the Age of AI, Why Not Both?

by Asha Palmer
June 17, 2025

As governments scramble to regulate AI, forward-thinking companies are writing their own compliance playbooks

human robot working as team pie chart

Smart Machines, Smarter Humans: Why Compliance Still Needs a Human Touch

by Roman Eloshvili
June 17, 2025

From the 2008 financial crisis to everyday judgment calls, the case for keeping humans in the compliance loop

data privacy leader concept

Who’s Minding Your Data? The Case for Dedicated Privacy Leadership

by Daniel Barber
June 16, 2025

As state privacy laws multiply and AI introduces new vulnerabilities, the question isn't whether you need dedicated privacy expertise —...

abstract obscured data colorful

NIST’s Differential Privacy Guidelines: 6 Critical Areas for Secure Implementation

by Michelle Drolet
June 16, 2025

Standard de-identification methods remain vulnerable to sophisticated attacks, but differential privacy offers mathematical guarantees that scale with emerging threats

Next Post
Risk Management: Watch Your Stars and Rainmakers

Risk Management: Watch Your Stars and Rainmakers

No Result
View All Result

Privacy Policy | AI Policy

Founded in 2010, CCI is the web’s premier global independent news source for compliance, ethics, risk and information security. 

Got a news tip? Get in touch. Want a weekly round-up in your inbox? Sign up for free. No subscription fees, no paywalls. 

Follow Us

Browse Topics:

  • CCI Press
  • Compliance
  • Compliance Podcasts
  • Cybersecurity
  • Data Privacy
  • eBooks Published by CCI
  • Ethics
  • FCPA
  • Featured
  • Financial Services
  • Fraud
  • Governance
  • GRC Vendor News
  • HR Compliance
  • Internal Audit
  • Leadership and Career
  • On Demand Webinars
  • Opinion
  • Research
  • Resource Library
  • Risk
  • Uncategorized
  • Videos
  • Webinars
  • Well-Being
  • Whitepapers

© 2025 Corporate Compliance Insights

Welcome to CCI. This site uses cookies. Please click OK to accept. Privacy Policy
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT
No Result
View All Result
  • Home
  • About
    • About CCI
    • CCI Magazine
    • Writing for CCI
    • Career Connection
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Library
    • Download Whitepapers & Reports
    • Download eBooks
    • New: Living Your Best Compliance Life by Mary Shirley
    • New: Ethics and Compliance for Humans by Adam Balfour
    • 2021: Raise Your Game, Not Your Voice by Lentini-Walker & Tschida
    • CCI Press & Compliance Bookshelf
  • Podcasts
    • Great Women in Compliance
    • Unless: The Podcast (Hemma Lomax)
  • Research
  • Webinars
  • Events
  • Subscribe

© 2025 Corporate Compliance Insights