Bank on Integrity
e-Learning Package for Banking Practitioners
3.Corruption pitfalls
Video 7 -Shop space saga
Case analysis
- Jack should be careful of the possible conflict of interest, i.e. inviting his cousin Alex to look for shop spaces. According to the HKMA Supervisory Policy Manual – Code of Conduct, Jack should avoid conflict of interest, actual or potential. He should seek the advice of the bank in case of doubt. (Please refer to para 2.4 of the Code: Conflicts of interest)
- Although it is normal to wine and dine with relatives and friends, bank employees
should be cautious if the entertainment is related to their official duties. Jack may be permitted by his bank under the Code to accept normal business entertainment,
but he should avoid meals or entertainment that are excessive in nature or frequency. (Please refer to para 2.8 of the Code: Personal benefits) - He should also follow the Code to seek his bank's permission when receiving personal benefits from those in relation to the bank business (such as the wine given by Alex after the dinner). (Please refer to para 2.8 of the Code: Personal benefits)
- "Entertainment" (i.e food and drink for consumption on the occasion when it is provided) is not an "advantage" under the Prevention of Bribery Ordinance. Acceptance of entertainment therefore does not constitute a criminal offence of corruption.
- While entertainment is commonplace in business dealings, employees may fall into a sweetening process if they accept entertainment which is excessive in nature or frequency. In the scenario, Jack’s judgment may be affected by Alex’s treat. The bottle of wine given by Alex after the meal is also an advantage. Bank employees should therefore handle entertainment with care.