3. Corruption pitfalls
Video 5 – Misplaced trust
Case analysis
Eddy
- ● Eddy violates the bank’s code of conduct for he keeps Grandma Lam’s signature stamp, albeit upon her request.
- ● He will commit fraud and the offences under section 9(3) of the Prevention of Bribery Ordinance and section 123 of the Banking Ordinance if he submits withdrawal slips with Lam’s signature stamp without her authorisation.
- ● It will also amount to theft if he misappropriates Lam’s funds for personal stock trading. He will still be liable even if he returns the funds in the end.
Other points to note
- ● While it is important to keep a good relationship with customers, professional integrity remains the most crucial quality for a banking practitioner. In this scenario, Eddy’s act, i.e. keeping Grandma Lam’s signature stamp, is not only a breach of the bank’s code of conduct, but also a reason for suspicion of other unethical behaviour on his part, in particular when irregularities are later found in Lam’s account.
- ● Bank employees are well advised to observe financial prudence and avoid indulging in financial speculation, which may lead to financial difficulties and even corruption.