Ex-CEO Claims China’s Top Bank Told Him to ‘Ignore’ Canadian Law

.

The former CEO of the Canadian subsidiary of China’s largest bank says he was instructed to “ignore” Canadian law and “circumvent” Canadian regulators, alleging he was fired for not following these directions.

Lubin Wang, 51, former head of ICBK, the Canadian subsidiary of the state-owned Industrial and Commercial Bank of China (ICBC), China’s largest bank, filed a lawsuit in the Ontario Superior Court of Justice for wrongful dismissal earlier this year, alleging he was pressured to scale back or abandon efforts to comply with Canadian regulations.

According to the lawsuit, a team of foreign nationals from a “special department located in the PRC” audited the Toronto-based ICBK at the end of October 2024.

While interviewing Wang as part of the audit, the group “went from asking questions to criticizing him for not following ICBC’s instructions, which included certain directives to ignore Canadian law and circumvent Canadian regulators,” the lawsuit says.

It adds that “after criticizing Mr. Wang for failing to follow directions from the PRC, [the audit team] then forcefully instructed Mr. Wang to amend the decision-making process of the bank, as well as some other important business procedures, despite the fact that doing so would place ICBK at odds with Canadian regulatory requirements.”

The allegations have not yet been tested in court.

In a statement to The Epoch Times, ICBK said it is unable to comment on “confidential Human Resources matters and on any related pending litigation.”

John Hamers, deputy chief compliance officer of the ICBK, said, “As a fully registered Canadian Schedule II bank, ICBK is committed to financial integrity and security, including thorough safeguards against foreign interference.”

He added the company works closely with federal agencies such as the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and the the Office of the Superintendent of Financial Institutions (OSFI) “to ensure compliance with all regulatory standards, ensuring transparency and accountability in every aspect of our business.”

The Epoch Times also sought comment from the main organization in China, ICBC, but did not immediately hear back.

The lawsuit states that after the Beijing-based bank opposed Wang’s efforts to comply with Canadian law, Wang grew concerned about possible foreign interference within ICBK.

“In some instances, ICBC pressured Mr. Wang to curtail, or entirely cease, certain actions which sought to bring ICBK in compliance with Parliament’s new reforms and correct past issues,” reads the lawsuit.

“This lack of regard for Canadian law, and his inability to countermand the directions from ICBC, caused him to become increasingly concerned with ICBK’s lack of autonomy and susceptibility to undue influence from its foreign parent bank.”

Wang’s lawsuit says he was offered the chief executive officer position because of his predecessor’s poor performance, which he says “guided the organization into numerous regulatory and legal issues with Canadian bank regulators.”

Wang’s contract began on July 1, 2023, and was to expire on March 28, 2028. However, he was dismissed from the position on or around Jan. 27, 2025, roughly 18 months after the start of the contract, according to the lawsuit. At the time of his termination, Wang was also a member of the ICBK board of directors.

According to the lawsuit, the decision to fire Wang was the result of ICBC ordering the Canadian subsidiary’s board of directors to dismiss him.

“Mr. Wang understood these shocking and entirely inappropriate questions to be an intimidation tactic, or threat, as opposed to a legitimate line of inquiry,” says the lawsuit.

It adds that Wang’s experience during the audit and the interview “caused him to be fearful for both his own, and his family’s security and well-being” because “ICBC had significant control and influence over his employment, liberty, and overall mobility.”

The lawsuit also describes a “concerning procedure” implemented by a Chinese national at ICBK after the audit. The person, identified in the document as the “ICBC Representative,” allegedly took all foreign employees’ passports and locked them in a safe.

“To reclaim possession of a passport, Mr. Wang and all expatriate employees working in Canada, would now be required to make a request, and submit detailed travel plans to the ICBC Representative for review and approval,” says the lawsuit.

The ICBC representative is described in the document as a member of ICBK’s senior executive team who “was answerable mainly to ICBC’s head office in the PRC and often ignored Canadian regulations or market practice.”

While on a vacation leave from Jan. 2 to Jan. 10, Wang was informed of his termination and told he would have to relocate to Beijing, the lawsuit says. Wang responded that he would address the matter upon his return to office.

While still on vacation leave, he allegedly received a call during which the chairman of the ICBK board of directors advised him to join an ongoing meeting, during which he would “announce his ‘voluntary’ resignation as President and CEO” to the board.

In shock, Wang “refused to comply with the Chairman’s sudden and entirely inappropriate request,” says the lawsuit.

Upon returning to office, Wang says he found he had been placed on a paid administrative leave of absence, and later learned another person had been assigned to replace him as chief of ICBK.

On Jan. 23, according to the lawsuit, the ICBK board of directors wrote to Wang, advising him ICBC was directing him to relocate to Beijing for a new role with ICBC. He replied the same day, explaining his reasons for refusing the transfer.

Wang is seeking $3 million in damages for wrongful dismissal, as well as compensation for “bad faith and moral damages” and “aggravated and punitive damages.”

In 2020, a Spanish court sentenced four executives of the Spanish branch of the bank to jail for money laundering offences.

The U.S. Federal Reserve in 2018 ordered the U.S. branch of the bank to revamp its anti-money laundering protections, saying it has “serious deficiencies.”