Integrity Focus

The ICAC and the Police conducted a joint operation, codenamed “Momentum”, on October 30 and 31, against corruption-facilitated fraudulent loan applications for the Special 100% Loan Guarantee as well as the 80% and 90% Guarantee Products under the Small and Medium-sized Enterprises (SME) Financing Guarantee Scheme. A total of 32 individuals were arrested by the two agencies in connection with fraudulent loan applications amounting to $140 million.

During the joint operation, the ICAC arrested 20 men and five women, aged between 31 and 63, for bribery offences under the Prevention of Bribery Ordinance. The arrestees included 13 frontline bank employees, seven intermediary operators (intermediaries), and five other individuals. Some of the arrested intermediaries were former bank staff.

ICAC officers conducted searches at various premises, where company documents of the intermediaries, bank documents and cash of over $200,000, believed to be part of the bribes in the scam, were seized.

The scam took place between June 2022 and May 2025. ICAC investigation revealed that the intermediaries had allegedly recruited dummy SMEs and arranged for them to apply for loans with various local banks through the Government’s SME Financing Guarantee Scheme. Most of the SMEs concerned had no genuine business operations.

The intermediaries were suspected to have offered bribes, amounting to at least about $500,000, to frontline bank staff for assisting dummy SMEs to open bank accounts and apply for loans by using false supporting documents. The 28 applications made by 22 SMEs involved loans totalling $140 million. It is alleged that the dummy SMEs had received rewards ranging from 5% to 7% of the loan payments, while the intermediaries pocketed the remaining sums after deducting the bribes paid to bank staff. The joint operation “Momentum” mounted by the ICAC and the Police had successfully intercepted the approval and release of loans of some of the applications.

In the joint operation, officers of the Commercial Crime Bureau and the Hong Kong Island Regional Crime Unit of the Police arrested four men and three women, aged between 31 and 66, for alleged fraud offences in the abovementioned loan applications.

Investigation revealed that the suspects from nine SMEs allegedly used false salary proofs and company operation records to apply for loans from various local banks under the SME Financing Guarantee Scheme’s 90% Guarantee Product and 100% Guarantee Special Loan. Some of the SMEs involved also opened fake Mandatory Provident Fund accounts and submitted a large number of false financial documents in their applications to obtain higher loan amounts. The total loan amount involved in these applications exceeded $50 million. During the operation, Police officers seized bank documents, bank cards and electronic devices.

The Police reminds the public that the maximum penalty for fraud upon conviction is 14 years’ imprisonment. As the investigations are ongoing, the ICAC and the Police do not rule out further law enforcement actions.

The ICAC and the Police have maintained close cooperation in combating crimes. The joint operation demonstrates the determination of the two agencies in fighting financial crimes, showcasing the time-tested anti-corruption regime. The ICAC wishes to reiterate that the case only involves individual frontline bank employees and that the Hong Kong banking industry as a whole is clean and the financial system remains robust.

The banking industry and relevant regulators have always been supportive of the ICAC’s continuous efforts to fortify the integrity culture of the industry. Last year, the ICAC, the Hong Kong Monetary Authority (HKMA) and the Hong Kong Association of Banks jointly launched the Banking Industry Integrity Charter (the Charter). Most of the local banks had participated in the Charter, undertaking to promote an integrity culture, implement good governance, provide integrity training to staff, as well as reporting suspected corruption, fraud and other illicit activities to the ICAC or other law enforcement agencies promptly.

The ICAC will continue to enhance corruption prevention capabilities of banks by publishing information of integrity through the Charter’s platform to alert banks to corruption risks relating to loan applications as well as relevant corruption prevention measures. The Commission will also continue to provide timely corruption prevention advice and integrity training to bank staff. Meanwhile, the Hong Kong International Anti-Corruption Academy continues to organise professional anti-corruption courses for bank managers, enhancing the awareness of internal control personnel in preventing corruption and fraud, helping banks to detect corruption and fraud at an early stage. The strategy is highly effective.

Following the joint operation “Momentum”, the ICAC will continue to work closely with the HKMC Insurance Limited (HKMCI) as well as the banking industry, providing timely advice so as to reduce relevant risks. The HKMCI will continue to closely cooperate with the banking sector and law enforcement agencies to prevent the recurrence of similar incidents.

The HKMA, the HKMCI and the relevant banks rendered full assistance to the ICAC and the Police during the investigations.