Case StudyCase Study

Macao Senior Government Official Corruption Macao Senior Government Official Corruption Case Case Multi-jurisdictional Asset Concealment / Recovery / Restraining / Multi-jurisdictional Asset Concealment / Recovery / Restraining /

ConfiscationConfiscation

CHOI Shu-keung CHOI Shu-keung

Assistant DirectorAssistant Director

ICAC, Hong KongICAC, Hong Kong

Dalian, China – 27 June 2012Dalian, China – 27 June 2012

The Forth IAACA The Forth IAACA SeminarSeminar

CorruptionCorruptionAsset Concealment / DiscoveryAsset Concealment / Discovery

Mr AOSecretary for Transport and Public Work

MACAO

HONG KONG

Govt Contractors

Overseas Companies

Family Members

39 Bank A/C

United Kingdom

Real Property

NomineesLawyers

MiddlemenHK$42M

HK$330M (US$42M) GBP 8.87M (US$14M)

HK Co.

Land Developers

InvestigationInvestigation

Asset Discovery / RestrainingAsset Discovery / Restraining

Suspicious Transactions in Hong KongSuspicious Transactions in Hong Kong

Hong Kong / Macao joint overt actions – Dec Hong Kong / Macao joint overt actions – Dec 20062006

Hong KongHong Kong– ArrestArrest middlemen and associates middlemen and associates– Seize Seize HKD eqv 82M Cash (S.10C of ICAC Ordinance)HKD eqv 82M Cash (S.10C of ICAC Ordinance)– RestraintRestraint (S.14C of Prevention of Bribery Ordinance) (S.14C of Prevention of Bribery Ordinance)

$330M in bank A/C of overseas co & $330M in bank A/C of overseas co & associates associates

– RestraintRestraint (Organized and Serious Crimes Ordinance) (Organized and Serious Crimes Ordinance) $22M in bank A/C of middleman $22M in bank A/C of middleman

ProsecutionProsecution

MACAO

HONG KONG

- ProsecutionProsecution- AO / associates / offerors for bribery and related offencesAO / associates / offerors for bribery and related offences

(29 yrs for AO and etc)(29 yrs for AO and etc)-AssetsAssets-Claimed all of AO’s assets in Hong KongClaimed all of AO’s assets in Hong Kong-Restrained the property in UK Restrained the property in UK -Recovering all assets of AO Recovering all assets of AO

Asset Restraining / Confiscation Asset Restraining / Confiscation

-ProsecutionProsecution -2 x middlemen for money laundering (absconded)2 x middlemen for money laundering (absconded)-2 x company directors for offering MOP29M bribe 2 x company directors for offering MOP29M bribe (36 mons jail pending appeal)(36 mons jail pending appeal)-AssetsAssets-Returned HK$330M to MacaoReturned HK$330M to Macao-Restrained HK$22.4M of a middlemanRestrained HK$22.4M of a middleman

(pending confiscation)(pending confiscation)

IssuesIssues

Anti-Money Maundering Law Anti-Money Maundering Law – implementation implementation – civil participationcivil participation

Anti-Corruption law Anti-Corruption law – power to recover corrupt proceedspower to recover corrupt proceeds

Inter-jurisdictional cooperation Inter-jurisdictional cooperation – legal / operational legal / operational

Role of Corporate Vehicles / Role of Corporate Vehicles / NomineesNominees

Thank You Thank You