New arm will help banks and financial services companies deal with new
wave of banking sector regulation reform

HONG KONG, Nov. 24 /PRNewswire-Asia/ -- The Red Flag Group, Asia's leading
Compliance Advisory, Due Diligence & Technology firm, today launched its
financial services practice to help banks and other financial institutions deal
with the changing and increasingly complex regulatory landscape that has formed
in the wake of the global financial crisis.

(Logo: http://www.prnasia.com/sa/2009/08/06/200908061401.jpg )

Around the world, financial institutions are facing greater scrutiny and
regulation. In the UK, the government has proposed giving more power to the
Financial Services Authority to preserve stability in the banking sector. Across
the Atlantic, banks are also facing a shake-up to the banking system, proposed
by the Obama Administration, which has been described as the biggest since the
1930s.

The race to regulate the financial services sector has been mirrored in Asia.
Earlier this year, Hong Kong has launched a consultative study into proposed
legislation that will tighten the customer due-diligence and record- keeping
requirements for banks and other financial services companies. It will also
empower regulators to supervise compliance, and set up criminal and supervisory
sanctions in case of breaches in compliance. Across the border in China, there
has also been increasing focus on financial irregularities.

Scott Lane, principal and chief executive officer at The Red Flag Group, said
that it has become more important for financial services companies to understand
and stay up-to-date with these regulatory changes that affect how they operate.
The alternative is they run the risk of falling afoul of new laws. "We are
seeing reforms in financial services sector across the globe because regulators
have been made aware that systematic risks in banks can hurt economic sectors
that they used to think were unrelated. In the US and UK, what started as
weaknesses in the sub-prime mortgage market, brought on by imprudent lending
practices, spread its contagion to other credit markets, and led us to the
economic conditions that we are seeing today.

"Banks and other financial services companies are becoming increasingly
concerned about this increasing regulation. They need to understand how it will
impact the way they do business, and what the changes they need to stay
compliant. This is something that we think our new financial services practice
will be able to help them address.

"Because of the changing regulatory environment, not only do firms in the
financial services sector run the risk of being liable to massive fines as well
as criminal prosecution, there is also the danger of damage to a firm's
reputation associated with a high profile investigation by a regulator.
Regardless of whether a violation has actually taken place, sometimes the mere
suggestion that a financial institution is being probed is all that is needed
for its clients to lose confidence," Mr. Lane said.

The Red Flag Group's new financial services practice will include Michael
Clement, a 17-year veteran of the financial services sector, with extensive
experience in building compliance programs, internal audit, compliance, and risk
management. Prior to his appointment, he was most recently an Associate Director
with a global consulting firm in Hong Kong. Previously, he was Director of
International Compliance for Charles Schwab, for whom he worked for over 15
years, based in San Francisco.

In addition, Perminder Kaur has been appointed as a Due Diligence Manager, Asia
South. With a Bachelor of Law degree, Mrs Kaur has extensive experience in the
field of Anti-Money Laundering, particularly conducting Due Diligence enquiries
in Southern Asian countries. Prior to joining the firm, Mrs Kaur worked as a
Compliance professional in a Hong Kong- based firm, which provides trust and
company services. "Our Due Diligence practice continues to grow and extend into
new markets, with a growing focus on India and South East Asia, so it is
essential that we have professionals with backgrounds like Mrs Kaur's, with rich
experience in regional due diligence and law, to provide clients with local
intelligence," Mr Lane said.

Notes for editors:

About The Red Flag Group

The Red Flag Group is one of the world's leading independent compliance advisory
& technology firms. Its main goals include helping companies develop and
maintain efficient and effective compliance programs, and provide ethics and
compliance-related due diligence, investigations, and audits. It also provides
tailored technology solutions to help legal and compliance professionals manage
a range of ethics and compliance issues, from conflicts of interest, to dealing
with gifts and hospitality, and customized and comprehensive online learning
solutions for complex issues on global compliance. Headquartered in Hong Kong,
it also has offices in Singapore, Sydney, Silicon Valley, London, and Dubai. For
more information, go to http://www.redflaggroup.com


    For media enquiries, please contact:

     Scott Lane
     Tel:   +852-8175-8932
     Email: lane@redflaggroup.com

     Raymond Ma
     Tel:   +852-2811-1976
     Email: raymondslma@netvigator.com

SOURCE The Red Flag Group