Independent Commission Against Corruption

Hong Kong

"誠" is a Chinese character, which means integrity.

The Key to Business Success

Integrity

Independent Commission Against Corruption303 Java Road, North Point, Hong KongWebsite: www.icac.org.hkEmail: general@icac.org.hkReport Corruption: (852) 2526 6366Hong Kong Ethics Development Centre: (852) 2587 9812Advisory Services Group: (852) 2526 6363

The Hong Kong EdgeHong Kong’s competitive edge comes from its world class infrastructure, free flow of information and capital, an efficient and clean government, the rule of law upheld by an independent judiciary, a simple taxation system, and a level playing field for businesses.

Home to some 6,000 overseas companies employing over 350,000 people in various sectors, Hong Kong continues to attract international entrepreneurs as an ideal destination for expansion into the Asia-Pacific and Greater China regions.

“Hong Kong is a world city, which has a very high priority for establishing a strong civil service and a corruption free society, and frankly a very good attraction for investors coming here.”

~ Dr. Richard Vuylsteke, President,

The American Chamber of Commerce in Hong Kong

“Hong Kong has a business culture that is internationally recognised for prudence, high standards of transparency and disclosure, good governance, and the rule of common law.”

~ Dr. Victor K. Fung, Chairman,

The Li & Fung Group

“For Hong Kong, the corruption problem has been contained to levels that most other societies would be happy to have... its citizens have been educated to be partners in the fight against graft.”

~ The Political and Economic Risk Consultancy

International RecognitionAs one of the freest economies in the world, Hong Kong is renowned for its open, clean and business-friendly environment.

International surveys and studies consistently rank Hong Kong’s business culture among the freest and cleanest in Asia and worldwide.

v Hong Kong is consistently rated as one of the least corrupt places in the world and the second cleanest in Asia in the Transparency International’s* Corruption Perceptions Index.

v According to The Heritage Foundation, Hong Kong is hailed as the

world’s freest economy with minimal corruption.

v In full compliance with the major provisions of the United Nations Convention Against Corruption, Hong Kong keeps corruption well under control. The Independent Commission Against Corruption (ICAC) combats graft effectively in both public and private sectors.

* Transparency International is a Berlin-based non-governmental organisation

monitoring corruption in international development.

Zero Tolerance of CorruptionFounded in 1974, the ICAC has been effectively combating corruption with a holistic strategy of law enforcement, prevention and education. Of the 300-odd prosecutions brought by the agency each year, over 80% result in convictions, making corruption a very high-risk crime here.

The Hong Kong government has adopted a policy of zero tolerance against corruption. The business sector has become increasingly engaged in the campaign against graft, taking an active part in the promotion of business ethics.

When reporting corruption, over 70% of complainants identify themselves, indicating their strong confidence in the ICAC. Respondents to independent opinion polls in recent years indicated that:

v 98% supported ICAC’s anti-corruption work.

v 97% had not experienced corruption personally or through friends and relatives.

v There is strong public resistance to corruption in both private and public sectors.

Corruption Reports Received by ICAC in 2010

v Advantage includes money, gifts, loans, rewards, commissions, employment, contracts, service, favours and discharge of liability whether in whole or in part, but excludes entertainment.

Prevailing professional practices and trade custom do not constitute a lawful defence for accepting an advantage.

GovernmentDepartments

30%

Public Bodies 6%

Private Sector*64%

* Includes property management, catering and entertainment, finance and insurance, construction, etc.

Gateway to ChinaAt the heart of the Asia-Pacific, Hong Kong is the favoured strategic point of entry to China, now one of the world’s biggest economies and its largest single market. Some 1,300 international companies have already set up regional headquarters here, tapping into business opportunities on the Mainland.

With an effective legal environment and high market transparency, Hong Kong has emerged as the top listing destination for multinational enterprises and Mainland corporations seeking worldwide capital. For overseas companies, listing here helps them establish a stronghold for exposure in the rapidly growing Chinese market. The year 2010 saw over 100 Initial Public Offerings listed on the Stock Exchange of Hong Kong and raising over HK$445 billion (US$57 billion).

Cross-boundary OpportunitiesBusiness opportunities in new environments come with challenges. The ICAC closely collaborates with regulators, professional bodies, chambers of commerce and the Mainland authorities to help businesses manage new challenges arising from cross-boundary operations. Its services include:

v Conferences & Workshops to share experience on corruption prevention, business ethics, laws and government policies.

v Guidebooks to explain the law and share best practice.

v Consultancies to offer customised corruption prevention advice and staff integrity training.

ICAC – Your Partner to Success

The ICAC provides customised, free services to help businesses enhance corporate governance, manage corruption risks and train staff in work ethics and integrity:

v The Hong Kong Ethics Development Centre offers ethics training and services for listed companies, small and medium enterprises and professionals.

Website: www.icac.org.hk/hkedc Tel: (852) 2587 9812 Email: hkedc@crd.icac.org.hk

v The Advisory Services Group helps enterprises strengthen capability to prevent corruption upon request.

Tel: (852) 2526 6363 Email: asg@cpd.icac.org.hk

Prevention of Bribery Ordinance (POBO)v Convictions of any of the above offences will result in a

maximum penalty of 7 years’ imprisonment and a fine of HK$500,000, and may be ordered to make full restitution of the illicit gains.

v Any person convicted of any bribery offence of the POBO may be prohibited from being a director or manager of any company, managing any partnership or practising any profession for a maximum of 7 years.

v Under the POBO, certain companies are specified as public bodies and their employees are considered public servants.

v For full details, please refer to the original text of the POBO (Laws of Hong Kong Chapter 201) on the website of the ICAC.

Integrity AlertsUnder the Prevention of Bribery Ordinance, corruption is prohibited in both the public and private sectors:

Public Sector

v Don’t offer any advantage to a public servant while having dealings with his employer, whether it is a government office or a public body.

v Don’t offer any advantage to a public servant on account of his performing or not performing an official duty.

Private Sector

v Don’t offer any advantage to an employee in connection with his employer’s business without the latter’s permission.

v Don’t solicit or accept any advantage without the employer’s permission.

Integrity Tipsv Know the anti-corruption laws.

v Practise strong corporate governance.

v Formulate codes of conduct and effective control measures against graft.

v Adopt a policy of zero tolerance towards corruption.

v Report corrupt activities to the ICAC without delay.