Thursday, November 11, 2010

http://www.thestandard.com.hk/news_detail.asp?we_cat=4&art_id=104839&sid=30251246&con_type=1&d_str=20101111&fc=4

Asia tops the world in white-collar crime, with China leading in fraud cases, followed by India and Indonesia, and the United Arab Emirates, experts said.

Those at the Global White Collar Crimes and Investigations Conference also warned that Hong Kong will see a rise in money laundering cases thanks to its free port policy.

Tommy Seah, chairman of the Singapore- based Certified System and Investigator World Headquarters, said among Asian countries, China has the most fraud cases, followed by a combination of India and Indonesia, and the UAE.

"Those cases resulted in a median loss of US$387,000 (HK$3.02 million) for small companies, and US$250,000 for large enterprises with more than 100 employees," Seah said yesterday.

Chan Cheuk-wah, Asia Pacific Region chairman of CSI World Headquarters, said cases of money laundering in Hong Kong are expected to grow, because there has been more hot money flowing into the region.

"Hong Kong's policy as a free port does not require visitors, including mainlanders, to declare cash brought to the region over a set amount," Chan said.

"There are more of them coming here to launder money by making property investments, and buying shares with large sums of cash."

Stanley Chia, managing director of International Cybercrime and Forensics Examiners, said: "Many developing countries in Asia have inefficient governance and provide less social security to its people, leading to more corruption and fraud schemes."

Chia said 51 percent of the fraud in Asia involves corruption, and 37 percent asset misappropriation.

Chan suggested more internationally recognized training should be given to in-house experts to identify suspicious transactions, especially on cross-border currency movements.

About 90 experts from the insurance, legal and financial sectors in Hong Kong, Singapore, Malaysia, Indonesia and Brunei are attending the two-day conference at the Excelsior Hotel, Causeway Bay.

The event ends today.