Industrial and Commercial Bank of China Limited: Regulatory Report

This report provides an overview of the legal and regulatory framework affecting the Industrial and Commercial Bank of China Limited (ICBC) in Australia. It begins with an executive summary and introduction, followed by a company overview. The core of the report details the legislative and regulatory framework, including banking statutes, such as the Banking Act 1959, the Corporations Act 2001 (Cth), the Competition and Consumer Act 2010 (Cth), the Fair Work Act 2009 (Cth), and data privacy and taxation laws. It also discusses treaties, conventions, and agreements entered into by ICBC, such as the China–Australia Free Trade Agreement, the Paris Agreement, and the UN Global Compact principles. The report highlights the bank's compliance requirements and the impact of these regulations on its operations and business practices. The report concludes by summarizing the key findings regarding ICBC's adherence to Australian laws and international agreements.

Running head: REPORT 0
LEGAL ASPECTS
MAY 8, 2019
STUDENT DETAILS:

REPORT 1
Executive Summary
The International trade law means set of rules, regulations, laws and agreements
that administer trade between countries. The International trade law develops the
rules that are needed to be followed by the companies. The essential thing for the
corporation is to decrease the problems and difficulties about the intellectual property
and to retain controls over the assets and brands of the corporations. The
corporation can remain competitive in the present markets by seeing proper
information in relation to the race as well as anti-trust law. This report states the
treaties, conventions, and agreements made by Industrial and Commercial Bank of
China Limited. The following parts also state legislative regulatory framework of

REPORT 2
Contents
Executive Summary......................................................................................................1
Introduction...................................................................................................................3
Company Overview......................................................................................................3
Legislative regulatory framework..................................................................................3
Banking Statutes in Australia....................................................................................3
Corporations Act 2001 (Cth).....................................................................................4
Competition and Consumer Act 2010 (Cth)..............................................................4
Fair Work Act 2009 (Cth)...........................................................................................4
Data Privacy Laws.....................................................................................................4
Taxation Laws...........................................................................................................5
Treaties, Conventions and Agreements.......................................................................5
Conclusion....................................................................................................................6
References...................................................................................................................7

REPORT 3
Introduction
The international laws render to enhance the global trading and investments. The
international law motivates the accomplishment in the international marketplaces. It
is very necessary to see how to adopt various laws in different marketplaces and
complete the dealings, transactions and agreements without avoidable problems and
complications. By adopting the international law, the company will be able to know
the fundamental legal principles included in the business conducted in outside
countries. The company will also ignore the legal fights by recognising the
fundamental duties and rights of the purchasers and sellers framed with the help of
the international rules and regulations. The following parts state the legislative
regulatory framework ofIndustrial and Commercial Bank of China Limited. In this
report, conventions, treaties and agreements made by Industrial and Commercial
Bank of China Limited is also evaluated.
Company Overview
Industrial and Commercial Bank of China Limited renders various banking products
and services mainly in China as well as globally. This company runs the Corporate
Banking, individual banking, as well as Treasury Operation divisions. The Corporate
Banking division proposes the financial services as well as products to the
companies, government agencies. The financial products and services of segment
involve the corporation loans, trade funding, deposits accepting actions, corporate
wealth management services, supervision activities, numerous corporate
intermediary service. The Personal Banking division renders the personal loan as
well as card, deposit, personal wealth management, and personal intermediary
services to the clients. The Treasury Operations division is included in the money
marketplace deals, forex transactions, investment security, and holding of derivative
posts. The corporation also renders the e-banking service, such as net, phone, and
m banking services; and funds, trusts, financial lease, broking services, asset
management, insurance, and different financial services. This company runs about
16,394 local organisations and 426 overseas organisations such as Beijing, South
America, and Asia. It is headquartered in Beijing. This bank had hired around
453048 employees in China and abroad.
Legislative regulatory framework
The entity ICBC had initially established its presence in Australia in the year 1999 in
the form of a representative office. It is significant to note that on 19th May 2008, the
Australian Prudential Regulation Authority (APRA), approved Industrial and
Commercial Bank of China Limited as a foreign authorized deposit taking institution
(ADI). By the virtue of the said authorization, the company is carrying on banking
business in Australia. In order to carry out the banking business in the Australia, the
corporate are not just required to follow the banking laws, but also a number of other
statutes as described below.

REPORT 4
Banking Statutes in Australia
The chief act in Australia that regulates the baking business in the country is the
Banking Act 1959 which has been recently amended as in force on 6 April 2019
(Austlii, 2019). The banking regulation provides a comprehensive framework of
governance and supervision of banks and provides rules and regulations for the
various business aspects for the entities in the banking industry. Some of the
aspects covered under the said regulation are the powers of the regulatory bodies,
roles of international standards, licensing requirements and procedures, foreign
investment requirements, liquidation regimes, the rules on liquidity, and recent trends
in the regulation of banking business environment (Paterson and Mallesons,
2018).The entity Industrial and Commercial Bank of China Limited has been
rendered a mandatory responsibility to comply with the various provisions of the act
while conducting its business operations in Australia.
Corporations Act 2001 (Cth)
The corporations of Australia are covered under the purview of the Corporations Act
2001 (Cth).The act is comprehensive and covers each and every facet of the
company operations in Australia. These facets include the rights and duties of the
owners and various members, rights and duties of the managerial body or the board
of the directors, liquidation procedure, rights of the creditors, and business interests
and duties of other stakeholder groups. ICBC, being a company which has its branch
operations in Australia has to comply with the annual reporting, holding of meeting,
preparation of account books, and presentation of the financial statements
requirements as stated in various sections of the said act. The act additionally makes
it mandatory for the listed public companies in Australia to follow the accounting
standard in relation to the branch accounting. The company is required to stick to the
corporate governance norms as listed in provisions of the Corporations Act to ensure
that the stakeholders are served in the best way possible.
Competition and Consumer Act 2010 (Cth)
The Competition and Consumer Act 2010 (CCA) has been enacted to cover the
most crucial aspects of the Australian businesses while dealing with the customer
which are a prime stakeholder group of any enterprise. Some of the chief areas that
are covered by the said act are the price monitoring, mergers and acquisitions, unfair
market practices, industry codes and likewise. The entity ICBC falls under the ambit
of the said act and has the legal responsibility to provide competitive banking
business products and services at the reasonable prices and in a responsible
manner to the wide range of customers. The most crucial aspect of a banking
business is the provision of complete incidental information to the customers and to
maintain the documentations with the Reserve Bank as well as concerning the
customers.
Fair Work Act 2009 (Cth)

REPORT 5
The various statutes have been designed in Australia to ensure the health, safety,
working conditions and norms for the employees (Australian Government, 2019).
The law is interpretive of the various conditions to ensure the business to design
policies in a manner that covers the needs and considerations of the employees.
Further, the act in the combination with the other acts such as the Racial
Discrimination Act 1975, Disability Discrimination Act 1992, and the Sex
Discrimination Act 1984; is aimed at ensuring that the workplaces are comprising of
dignity, honour and respect of the employees (Australian Human Rights
Commission, 2019). Thus, ICBC is required to ensure that the entity’s workplace is
free from various forms of the harassment practices and an overall healthy working
environment is devised.
Data Privacy Laws
The Privacy Act 1988in Australia is aimed at ensuring that the proper security
measures are taken by the entities to preserve the data of the numerous clients
(Australian Government, 2014). As the entity ICBC operates in a business
environment where the customers share a large sensitive data information with the
entity, the act makes it mandatory for the company to collect or use private
information of individuals in the manner laid down and ensure that the same is
preserves in the manner stated. The company has to be considerate of the safety of
bank accounts related information and know your client data for various corporate
and retail clients.
Taxation Laws
Direct tax law on the lines of the corporate tax at the rate of 30% are applicable on
the earnings of the company ICBC in Australia. In addition, the indirect taxes are
levied on the financial services of the ICBC in the form of Goods and Services Tax
(GST) (Chen, Matousek and Wanke, 2018).
Treaties, Conventions and Agreements
The Industrial and Commercial Bank of China Limited and government of China
made the agreements by signing to make co-operation on infrastructure funding and
push for the Chinese Corporations to raise the finance in the capital marketplace of
outside countries by the listing and compulsory issues. Industrial and Commercial
Bank of China Limited has entered into China–Australia Free Trade Agreement. The
historic agreement, which is rendering various advantages to Australia, improves the
competitive positions in a market of China, increasing financial development, and
generating more jobs. This agreement finds the ways for the upcoming stage of
financial relations of Australia with China. The China–Australia Free Trade
Agreement discover the significant chances for Australia in China that is the greatest
export marketplace of Australia for services as well as products, accounting for
approximately the 3rd of whole exports as well as increasing sources of international
investment (Cullet, 2017). In addition, the agreement would increase and secure the
competitiveness of Australia with the largest partners, while also attracting growth-
enhancing investments. This agreement would extend the integration of Australia
with the main player in value chain at the international level. China is balancing from

REPORT 6
the investments, export-intensive model, as well as production model of
development, to the more consumption and services-oriented economy as this
appears to endure the financial development over the upcoming periods (Young,
2016). This agreement will be helpful for this bank because this will get regarding
advanced and more diverse trading in the products, development in two-ways
investments, and larger trade in the service and knowledge-based sectors as
economy transform of China to get the stable constant development (Dempsey,
2017).
Further, this bank also made Paris agreement. The Paris agreement sets the
international actions planning to take the world on path to ignore the severe climate
changes through restricting the global warming to under 2°C and chasing effort to
restrict this to 1.5°C (Tong, 2017). The Paris Agreement is a bridge between today's
policies and climate-neutrality before the end of the century. The agreement also
identifies significances of avoiding, reducing and stating losses and damages related
with the negative impacts of the changes in climate. This agreement also identifies
the requirement to collaborate and increase the knowledge, actions and
sustenance in the various fields like earlier warning system, emergency preparation
and risks assurance (Montgomery, Cook and Zeckoski, Bank of America
Corporation. 2018). In the addition of this, the Paris agreement also identifies the
role of non-Party shareholders in stating the change related to climate, involving
cities, other sub national establishments, public societies, the private sectors, and
other sectors. This bank would continue to support the climate actions to decrease
emission and form flexibility to the influences related to changes in climate
(Flinchem, Patent Navigation Inc, 2017).
Furthermore, as per the US-China agreement, this bank is devoted to following the
clean electricity dispatch systems, which would arrange the power generations
through renewable resources (Suzuki and Miah, M.D. 2017). It is unfavourably
significant because, even if China currently leads the world in solar and wind energy,
the present electricity systems continue to render preference to coal-fired power
plant, running this plant to fulfil minimum contracted duration, instead of functioning
lower-emitting renewable power plants. Along with this, The Industrial and
Commercial Bank of China Limited also followed into UN Global Compact principals.
The UN Global Compact principals are the major framework for business,
addressing 10 principles in the fields of anti-corruption, human rights, environment,
and labour (Paterson and Mallesons, 2018). Under the Global Compact, companies
are brought together with labour groups, United Nations agency, and civil societies.
The UN Global Compact agreement for secure, Arranged and regular migration is an
inter administratively assigned agreement, made within the supports of the United
Nations, that defines itself as containing "all scopes of global migration in the holistic
and inclusive way (Kim, Samsung Electronics Co Ltd, 2016) .
Conclusion
As per the above analysis, it can be concluded that the legislative characteristics of
the international trading state the complex international legislative framework that
makes able the business, people, groups, and government of the country to properly
and lawfully exchange the proper products and services across borders. It is
recommended to the bank that this should operate the business simply and in simple

REPORT 7
manner as well as successfully by considerably handling the legal problems an d
issues arising from E-commerce.

REPORT 8
References
Austlii (2019)Banking Act 1959 – notes. [Online] Available
from:http://classic.austlii.edu.au/au/legis/cth/consol_act/ba195972/notes.html
[Accessed on 09/05/2019].
Australian Government (2014) Privacy Act 1988[online] Available
from:https://www.legislation.gov.au/Details/C2014C00076 [Accessed on
29/04/2019].
Australian Government (2019) Fair Work Amendment Act 2013. [online] Available
from: https://www.legislation.gov.au/Details/C2013A00073 [Accessed on
29/04/2019].
Australian Human Rights Commission (2019) Workplace discrimination, harassment
and bullying. [online] Available from:
https://www.humanrights.gov.au/employers/good-practice-good-business-
factsheets/workplace-discrimination-harassment-and-bullying [Accessed on
29/04/2019].
Chen, Z., Matousek, R. and Wanke, P. (2018) Chinese bank efficiency during the
global financial crisis: A combined approach using satisficing DEA and Support
Vector Machines☆. The North American Journal of Economics and Finance, 43,
pp.71-86.
Corporations Ac 2001 (Cth)
Cullet, P. (2017) Differential treatment in international environmental law. New York:
Routledge.
Dempsey, A.L. (2017) Evolutions in Corporate Governance: towards an ethical
framework for business conduct. New York: Routledge.
Flinchem, E., Patent Navigation Inc, (2017) Enhancing bank card security with a
mobile device. U.S. Patent 9,569,772.
Kim, J.E., Samsung Electronics Co Ltd (2016) Display screen or portion thereof with
icon. U.S. Patent Application 29/489,385
Montgomery, M., Cook, D. and Zeckoski, R., Bank of America Corporation
(2018) Secure packaging software and deployment system. U.S. Patent Application
15/081,893.
Paterson, I. and Mallesons, K&W. (2018) Banking regulation in Australia: overview.
[Online] Available from:https://uk.practicallaw.thomsonreuters.com/w-006-9098?
transitionType=Default&contextData=(sc.Default)&firstPage=true&comp=pluk&bhcp=
1 [Accessed on 09/05/2019].
Suzuki, Y. and Miah, M.D. (2017) China’s non-performing bank loan crisis: The role
of economic rents 1. In Banking and Economic Rent in Asia (pp. 71-85). Routledge.
Tong, D.D. (2017) The heart of economic reform: China's banking reform and state
enterprise restructuring. Routledge.

REPORT 9
Young, M.A. (2016) International trade law compatibility of market-related measures
to combat illegal, unreported and unregulated (IUU) fishing. Marine Policy, 69, pp.
209-219.