XN000022-1985-03-31 — Page 15

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SUNDAY, MARCH 31, 1985

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CONSIDERING HONG KONG'S SOPHISTICATED BANKING AND FINANCIAL FACILITIES, IT WOULD BE SURPRISING INDEED IF MULTI-NATIONAL BUSINESS DEALS WITH OTHER ASIAN COUNTRIES DID NOT INVOLVE HONG KONG IN SOME WAY.

''THE SCOPE OF FRAUD IS VERY MUCH WIDER NOW AND ON AN INTERNATIONAL BASIS." SAID MR FARNHAM. MY OFFICERS ARE FREQUENTLY TRAVELLING THROUGHOUT THE WORLD INVESTIGATING CASES, LOCATING WITNESSES AND ARRANGING EXTRADITION ORDERS.''

CO-OPERATION FROM THE 137 MEMBER-COUNTRIES OF INTERPOL ALSO PLAYS A VERY IMPORTANT ROLE IN THESE ENQUIRIES AND ENABLES INFORMATION, PHOTOGRAPHS AND FINGERPRINT IMAGES TO BE FLASHED AROUND THE WORLD VERY QUICKLY.

IN RECIPROCATION, ABOUT 10 PER CENT OF THE CCB'S WORKLOAD INVOLVES INVESTIGATING ENQUIRIES FROM ENFORCEMENT AGENCIES OVERSEAS.

ANY COMMERCIAL FRAUD OF OVER HALF A MILLION DOLLARS SATISFIES THE BUREAU'S CRITERION FOR ACTION, EXPLAINED MR FARNHAM. ''WE'RE REALLY LOOKING AT THE BIG STUFF."

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**BUT FIRST WE HAVE TO PROVE THERE IS CRIMINAL INTENT. THE LINE BETWEEN FRAUD AND MISMANAGEMENT CAN BE VERY THIN.''

HE CITED BOUNCING CHEQUES AS AN EXAMPLE, BECAUSE ALTHOUGH THE COMMERCIAL CRIME LABEL COVERS A WIDE SPECTRUM OF OFFENCES, ABOUT 50 PER CENT OF THE BUREAU'S WORK INVOLVES DISHONOURED CHEQUES IN ONE FORM OR ANOTHER.

UNFORTUNATELY, AN ENORMOUS AMOUNT OF HONG KONG'S FRENETIC BUSINESS ACTIVITY IS CARRIED OUT ON THE BASIS OF POST-DATED CHEQUES. AT THE TIME A CHEQUE IS MADE OUT, THE WRITER MAY BE UNDER THE LEGITIMATE IMPRESSION THAT HE WILL SOON HAVE FUNDS COMING INTO THE ACCOUNT TO COVER IT. IF THERE IS A DELAY OR DEFAULT BY ANOTHER PARTY IN PAYING HIM THESE FUNDS, THE WRITER OF THE CHEQUE COULD FACE A CLAIM FOR FRAUD.

IN THAT SORT OF CASE THERE WOULD BE NO CRIMINAL INTENT,'' SAID MR FARNHAM. ''ALTHOUGH THAT WOULDN'T STOP A CIVIL ACTION BY THE CREDITOR TO SUE.':

THE SECOND BRANCH OF THE BUREAU'S CHARTER IS THE INVESTIGATION OF COUNTERFEIT, INCLUDING CURRENCIES OF ANY NATIONALITY, AND THE FORGERY OF OFFICIAL DOCUMENTS, TRAVELLER'S CHEQUES AND CREDIT CARDS.

COMMENTING ON THE UPSURGE OF CREDIT CARD CRIMES IN RECENT YEARS, MR FARNHAM SAID THAT MOST OF THIS ACTIVITY INVOLVED CARDS WHICH HAD BEEN STOLEN OR LOST, RATHER THAN FORGED. THERE HAD ONLY BEEN TWO CASES LAST YEAR IN WHICH COUNTERFEIT CARDS WERE USED AND BOTH RACKETS HAD BEEN SMASHED BY POLICE.

/AS IN