TCM HK
Total Credit & Risk Management Group (GCS Hong Kong) - Newsletter
Monday, 23 December, 2013
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Message to client
Message 1

2014 Public Holiday List 

 
  China Taiwan Macau Hong Kong Australia Indonesia Malaysia Singapore Thailand Vietnam U.S.A.
JAN 1, 30, 31 1, 30, 31 1, 31 1, 31 1, 26, 27 1, 14, 31 1, 14, 31 1, 31 1 1, 30, 31 1, 20
FEB 1-4 1-3, 14, 28 1, 2 1, 3     1, 3 1, 3 14 1, 3 17
MAR         3, 10 31          
APR 5 4, 5 5, 18, 19 5, 18, 19, 21 18, 19, 21, 25 18   18 6, 7, 13-16 19, 30  
MAY 1, 2 1 1, 6 1, 6   1, 15, 27, 29 1, 13 1, 13 1, 5, 13 1  
JUN 2 2 2 2 9   7        
JUL       1   28 - 31 15, 28, 29 28 1, 11, 29   4
AUG           1, 17 31 9 12    
SEP 8 8 9 9 29   1, 16     2 1
OCT 1-3 10 1, 2 1, 2 6 5, 25 5, 6, 23, 25 5, 23 23   13
NOV     2               11, 27
DEC     20, 22, 24, 25 25, 26 25, 26 25, 26 25 25 5, 10, 31   25
   
Note: Saturdays and Sundays are NOT working days. 

Total Credit & Risk Management Group

Message 1 A

ACA Hosts Meeting with Asia/Middle East Representative (GCS Bahrain)

Ebrahim Jawad, Managing Director of Al-Nabaa Commercial Services and Regional Director ¡V GCS Middle East, met with Washington, D.C., staff and CEO Pat Morris.

The ACA International staff in Washington, D.C., recently hosted Ebrahim Jawad, the Managing Director of Al-Nabaa Commercial Services (NCS Collection and GCS Bahrain) in the Kingdom of Bahrain and a newly-appointed member of ACA¡¦s International Unit Board of Directors representing the Asia/Middle East region.

ACA CEO Pat Morris and the Government Affairs team discussed ongoing initiatives with Ebrahim Jawad to continue growing ACA¡¦s international membership, and outreach to other national collection associations around the world to share information and learn about credit and collection operations and trends.

Additionally, they shared ideas on the diversified programs and education offered by ACA to members around the world, including delivery of educational materials, PPMS and international training courses. They also discussed initiatives to encourage members in all regions to capitalize on their membership in the association.


Message 2
ACA International 2014 Leadership Symposium ¡V Aspen, CO, USA

ACA International will hold its 2014 Leadership Symposium at the at The St. Regis Aspen Resort in Aspen, Colorado, USA on 8 - 11 January 2014.

This once-a-year small group meeting is designed to put credit and collection leadership skills to the test.

This event will allow members to revitalize their approach to leadership at their company, network with fellows leaders on the slopes in Aspen, Colorado,

Special events will include both an informal dinner at Jimmy¡¦s, known to the locals  as an ¡§Aspen Institution and has been recognized as one of the Top 50 Bars in the nation by Food & Wine magazine, on 8 January 2014; and dinner at Element 47 at the Little Neil, one of Aspen¡¦s newest restaurants known for Executive Chef Robert McCormick¡¦s distinctive, artistic flair while using and highlighting local ingredients, sustainable fish, organic vegetables and artisan cheeses.


Message 3
HKCCMA Annual General Meeting & Dinner 2012-2013

The members of the Hong Kong Credit and Collection Management Association (HKCCMA) will hold its Annual General Meeting and Dinner 2012-2013 on Friday 24 January 2014.

The cocktail reception will begin at 6:30pm followed by the Annual General Meeting and Dinner at 8:00pm, at the Club Lusitano, 27/F Club Lusitano Building, 16 Ice House Street, Central, Hong Kong.

Mr. Stephen LO, Chairman of HKCCMA, will provide an annual review of the achievements and announce future plans for the association.

The highlight of the event is expected to be the speech given by the Award Winner of the 2013 Credit Management Excellence Award.


Message 4
13th Asiagate Annual Conference ¡V Bali, Indonesia

Asiagate, the world¡¦s largest Asian company credit information gateway, will hold its 13th annual conference in Bali, Indonesia on 14th March, 2014.

Bali is an island and the smallest province of Indonesia, and includes a few smaller neighbouring islands, notably Nusa Penida.  It is located at the westernmost end of the Lesser Sunda Islands, between Java to the west and Lombok to the east, and has its capital of Denpasar, which is also the largest city in the provincial capital, at the southern part of the island.  Bali's second-largest city is the old colonial capital, Singaraja, which is located on the north coast. Other important cities include the beach resort, Kuta, which is practically part of Denpasar's urban area, and Ubud, situated at the north of Denpasar, is the island's cultural centre.

Bali is the largest tourist destination in Indonesia and is renowned for its diverse and sophisticated art forms, such as painting, sculpture, woodcarving, handcrafts, and performing arts.  Balinese cuisine is also distinctive. Balinese percussion orchestra music, known as gamelan, is highly developed and varied. Balinese performing arts often portray stories from Hindu epics such as the Ramayana but with heavy Balinese influence. Famous Balinese dances include pendet, legong, baris, topeng, barong, gong keybar, and kecak (the monkey dance). Bali boasts one of the most diverse and innovative performing arts cultures in the world, with paid performances at thousands of temple festivals, private ceremonies, or public shows.

The Stones Hotel has been chosen as the conference venue.  Distinctive in design, sophistication and style, The Stones Hotel - Legian Bali, Autograph Collection defines luxury with the finest of Legian Bali resort accommodations. Situated on the southern tip of Legian Beach and just 20 minutes from the airport, this exquisite escape is complemented by its exceptional service standards, unique hotel designs and lavish amenities creating a remarkable 5 star luxury resort experience.

The annual conference will be hosted by Asiagate Indonesia and chaired by Asiagate Hong Kong.  The conference is expected to include progress updates from the Marketing & Planning Committee (chaired by Asiagate India), about the status of the Asiagate portal, participation with global business information groups and other credit events.


Total Credit & Risk Management Group (GCS Hong Kong)
Since our incorporation in 1987, Total Credit & Risk Management Group is the leading provider of global credit & risk management services with a focus on Greater China (Hong Kong, China, Taiwan, Macau) and the Asia-Pacific region.

Total Credit & Risk Management Group provides the full range of services, from global real-time business & credit information, receivable management services to background investigations, due diligence and pre-employment screening.

Our clients include government departments, banking and finance institutions, export credit agencies, accountancy and legal firms, utilities, distributors, freight forwarding and logistical firms, hotels, importers and exporters, business associations, construction firms, foreign trade commissions and companies operating in the gaming, leisure and entertainment industry.

ACA International Profile
ACA International, the Association of Credit and Collection Professionals, is the comprehensive, knowledge-based resource in the credit and collection industry.

Founded in 1939, ACA brings together more than 5,000 members worldwide, including third-party collection agencies, asset-buyers, attorneys, creditors and vendor affiliates.  The association establishes ethical standards; produces a wide variety of products, services and publications; and articulates the value of the credit and collection industry to businesses, policymakers and consumers.

NALI Profile
NALI was formed in 1967 for legal investigators actively engaged in negligence investigations for the plaintiff and / or criminal defense.

NALI¡¦s primary focus is to educate and advance the art and science of legal investigation, and to ensure the highest standard of professional ethics.  This common bond establishes mutual trust, goodwill and friendship among their members, which currently exceeds 500 professional legal investigators located throughout the USA and other countries.

IMA Profile
Established in 1961, the Institute of Mercantile Agents Limited (IMA) represents collectors, investigators, process servers and repossession agents throughout Australia.  Elected members networked across Australia work on matters of licensing, privacy, training and ethics affecting members.

WAD Profile
With origins dating back to 1921, W.A.D. is the longest established and largest association of its kind in the world.
 
The World Association of Detectives was formed as a joint venture by the combined membership of the World Association of Detectives and the International Secret Service Association and remains the foremost International Association of Professional Investigators and Security Service organizations.

GCS Profile
GCS has a commitment to being at the forefront of technology ensuring that we utilize that advantage to enhance the efforts of our qualified staff.  Global Credit Solutions Limited originated in Australia, with the foundation company Total Credit Management Services Pty Ltd, and expanded offshore to Asia, Europe, Middle East, Gulf & Americas. The company was incorporated, to provide the infrastructure for a planned and sustained growth, in the vital area of Global Credit Management services. The company now operates around the world, providing premium services to its ever-increasing list of high profile clients.

GCS provides offices on the ground - Collecting and litigating overseas can present many problems. A multiplicity of regulations in each of the hundred or more jurisdictions around the world mean it is impossible to manage risk efficiently and expertly from a single location - there is no substitute for local knowledge. GCS provides expertise in the legal system, rules of enforcement, customs and practices which eliminate risk and create a level playing field upon which to trade.

Today, GCS is recognized by the International business community as experts in the fields of credit management, debt collection, credit reporting and risk management services.

Asiagate Profile
Asiagate was formed by a group of well-established and prominent credit reporting agencies in Asia knowing the importance of the growing economy in Asia and the need to protect investors and businessmen. Asiagate provides the widest coverage of corporate credit information in Asia and its country members are specifically selected based on their size, establishment, integrity and reputation from each country. Currently, its members covers China, Hong Kong, India, Indonesia, Korea, Malaysia, Singapore, New Zealand, Australia, Taiwan, Thailand, Vietnam, Philippines and Kenya. 
 
Asiagate is also working on the integration with the renowned international credit information networks such as Eurogate and BigNet in order to create the largest credit information network in the world.

In the industry, we are founding members of:
 
Global Credit Solutions (GCS) Group
Total Credit & Risk Management Group
Asiagate
Hong Kong Credit And Collection Management Association (HKCCMA)

And members of:
 
ACA International, USA
Institute of Mercantile Agents (IMA), Australia
National Association of Legal Investigators (NALI)
World Association of Professional Investigators (WAPI)
World Investigators Network (WIN)
World Association of Detectives, Inc. (WAD)

Our expertise, know-how, network, advanced technology support and 25 years + comprehensive databases distinguish us in the market.


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News Highlights
    Consumer Price Indices for November 2013

         The Census and Statistics Department (C&SD) released today (December 23) the Consumer Price Index (CPI) figures for November 2013. According to the Composite CPI, overall consumer prices rose by 4.3% in November 2013 over the same month a year earlier, same as th >>>>>[Read more]

    Hong Kong's Gross National Income and external primary income flows for the third quarter of 2013

         Preliminary statistics on Hong Kong's Gross National Income (GNI) and external primary income flows (EPIF) for the third quarter of 2013 were released today (December 13) by the Census and Statistics Department (C&SD).

         Accordi >>>>>[Read more]

    Construction output for the third quarter of 2013

         The total gross value of construction works performed by main contractors in the third quarter of 2013 increased by 5.1% in nominal terms over a year earlier to $40.9 billion, according to the provisional results of the Quarterly Survey of Construction Output release >>>>>[Read more]

    External Direct Investment of Hong Kong in 2012

         Hong Kong's external direct investment (DI) statistics for 2012 were released today (December 10) by the Census and Statistics Department (C&SD).

    Positions of DI

         At the end of 2012, the position of Hong Kong's DI liabi >>>>>[Read more]

    Quarterly business receipts indices for service industries for the third quarter of 2013

         Business receipts in value terms of most of the major service industries showed increases of different magnitudes in the third quarter of 2013 when compared with the third quarter of 2012, according to the provisional figures of business receipts indices released tod >>>>>[Read more]

    Key statistics on business performance & operating characteristics of the industrial sector in 2012

         According to the results of the 2012 Annual Survey of Economic Activities - Industrial Sector released today (November 29) by the Census and Statistics Department (C&SD), the manufacturing sector's total receipts (comprising sales and other receipts) amounted to $21 >>>>>[Read more]

    Consumer Price Indices for October 2013

         The Census and Statistics Department (C&SD) released today (November 21) the Consumer Price Index (CPI) figures for October 2013.  According to the Composite CPI, overall consumer prices rose by 4.3% in October 2013 over the same month a year earlier, s >>>>>[Read more]

    Unemployment and underemployment statistics for August - October 2013

         According to the latest labour force statistics (provisional figures for August - October 2013) released today (November 18) by the Census and Statistics Department, the seasonally adjusted unemployment rate stood at 3.3% in August - October 2013, same as that in Jul >>>>>[Read more]

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    Article
    JPMorgan Chase Investigation into Hiring Practices Expands

    Posted on 4th November 2013 by Editor

    In August 2013, the New York Times (NYT) reported that JPMorgan Chase is under Foreign Corrupt Practices Act (FCPA) scrutiny in China for its hiring practices. In an article, entitled Hiring in China By JPMorgan Under Scrutiny reporters Jessica Silver-Greenberg, Ben Protess and David Barboza broke the story that the Securities and Exchange Commission (SEC) is investigating to determine "whether JPMorgan Chase hired the children of powerful Chinese officials to help the bank win lucrative business in the booming nation." The article is based upon "a confidential United States government document".

    Hiring of a family member of a foreign government official is not illegal under the FCPA. As noted in the NYT article, "While the hire of a son or daughter itself is not illegal, red flags would be raised if the person hired was not qualified for the position, or, for example, if a firm never received business before and then lo and behold, the hire brought in business." In blog post, entitled JPMorgan's Hiring Practices In China Under Scrutiny, the FCPA Professor reviewed some enforcement actions "where the conduct at issue involved the hiring of children or spouses of alleged 'foreign officials'." In each of the FCPA enforcement actions, there was a quid pro quo for the hiring of the family member. In other words, the company received some benefit for the hiring of the government official's family member; so the Department of Justice interpreted the hiring as 'something of value' going to the government official and thereby violating the FCPA.

    The NYT article details several situations where JPMorgan hired the children of Chinese government officials and sometime thereafter the bank was able to secure work from the business or industry of a parent of a hired employee. The examples included the hiring of a "son of a former Chinese banking regulator who is now the chairman of the China Everbright Group, a state-controlled financial conglomerate, according to the document, which was reviewed by The New York Times, as well as public records. After the chairman's son came on board, JPMorgan secured multiple coveted assignments from the Chinese conglomerate, including advising a subsidiary of the company on a stock offering, records show." In another instance, the bank hired the daughter of a Chinese railway official. After hiring the daughter, JPMorgan was hired to assist the company to go public.

    Things got worse for JPMorgan when Dawn Kopecki, in a Bloomberg article entitled JPMorgan Bribe Probe Said to Expand in Asia as Spreadsheet Is Found, reported that there was "an internal spreadsheet that linked appointments to specific deals pursued by the bank."  She noted that the original investigation, which began in Hong Kong, has now been expanded to other countries in Asia and that JPMorgan "has opened an internal investigation that has flagged more than 200 hires for review, said two people with knowledge of the examination, results of which JPMorgan is sharing with regulators." Kopecki quoted Dan Hurson, a former U.S. prosecutor and SEC lawyer who runs his own Washington practice, who said that the "SEC will hunt for evidence showing 'these weren't real jobs, that they were only there because their father or mother were important public officials' and 'if the public official requested the job for the child, that would be a strong indication to the company that the official was seeking and receiving something of value'." Perhaps more damaging was that the spreadsheet had information which apparently linked"some hiring decisions to specific transactions pursued by the bank."

    In a later NYT article, entitled JPMorgan Hiring Put China's Elite on an Easy Track, Jessica Silver-Greenberg and Ben Protess further reported that the JPMorgan hiring program even had its own name, which was 'Sons & Daughters'. Although the program was originally set up to provide transparency and visibility into the hiring process which might implicate FCPA issues, they reported that it went badly "off track". Under the Sons & Daughters hiring program, a two-tiered track was created in the hiring process; one for regular applicants and one for children of Chinese officials. However, as time passed the program began to be used to allow for fewer job interviews and relaxed hiring standards for the candidates in the program. This allowed the company to hire some candidates who had "subpar academic records and lacked relevant expertise."

    Now JPMorgan has disclosed in a securities filing that "its business relationships with certain related clients in the Asia Pacific region and its engagement of consultants in the Asia Pacific region." As reported in another NYT article, entitled U.S. Inquiry Broadens Into Bank¡¦s Asia Hiring,  "government authorities are examining JPMorgan's hiring practices throughout Asia, focusing on South Korea, Singapore and India. That scrutiny comes after JPMorgan itself flagged those countries for further review, the people said." In addition to possible FCPA issues, the NYT article reported that Hong Kong and British authorities "are also investigating the bank's hiring practices." In a Wall Street Journal (WSJ), entitled Probe Expands Into JPMorgan Hiring, Dan Fitzpatrick reported that the Securities and Exchange Commission has issued subpoenas to JPMorgan Chase for not only the 'Sons & Daughters' hiring program but also "the use of certain consultants in the Asian-Pacific region."

    All of this compounds the bad news for JPMorgan Chase and the difficult period it is going through with several legal and regulatory investigations. However, this investigation regarding hiring practices has the possibility of expanding into enforcement actions with several different anti-corruption enforcement agencies, such as the U.S. Department of Justice (DOJ) and SEC and the U.K. Serious Fraud Office (SFO) and perhaps Hong Kong and Chinese regulators as well. At this point, about all I can say is 'Stay tuned for further developments'.

    This publication contains general information only and is based on the experiences and research of the author. The author is not, by means of this publication, rendering business, legal advice, or other professional advice or services. This publication is not a substitute for such legal advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified legal advisor. The author, his affiliates, and related entities shall not be responsible for any loss sustained by any person or entity that relies on this publication. The Author gives his permission to link, post, distribute, or reference this article for any lawful purpose, provided attribution is made to the author. The author can be reached at tfox@tfoxlaw.com.

    © Thomas R. Fox, 2013


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    Email Address: inquiry@totalcredit.hk
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