Compliance

Compliance Corner: Hong Kong

Editorial Staff, 26 April 2021

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The latest compliance news: regulatory developments, punishments, guidance, permissions and new product and service offerings.

Securities and Futures Commission
The Securities and Futures Commission of Hong Kong and the jurisdiction’s Commercial Crime Bureau of the Police have carried out an operation against “a syndicate suspected of market misconduct and fraud.”

Three males and one female – not identified by name – were arrested in the territory for offences of conspiracy to defraud, the regulator said in a statement last week. 

The organisations said they acted on 4 and 5 March this year against an “active and sophisticated syndicate suspected of operating ramp-and-dump market manipulation schemes”.  The actions involved searching offices of a Hong Kong-listed company and the residences of its senior executives.

“The SFC conducted the search with the police under the Securities and Futures Ordinance for offences related to market manipulation and other market misconduct,” the SFC said. 

“Regarding the fraud investigations by the police, four persons, including three males and one female aged between 26 and 63, were arrested at various locations in the territory for offences of conspiracy to defraud. They included three senior executives of the listed company who are alleged to have conspired to use bogus transactions to embezzle funds of the company involving over $19 million. All arrested persons are now detained by the police for further enquiries,” it said. 

Investigations are continuing.

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