Securities Commission Malaysia 
Corruption has undoubtedly been one of the most deep-rooted, pervasive problems that has crippled economies around the world. The Corruption Perception Index (CPI) 2018 ranked Malaysia on the 61st place out of 180 countries. The launch of the National Anti-Corruption Plan (NACP) 2019-2023 was one of the government’s initiatives in realizing Malaysia’s manifesto towards a nation with integrity and free from corruption. Themed ‘Breaking the Corruption Chain’, the NACP was developed to be implemented in five years.
Section 17A (1) of the MACC (Amendment) Act 2018, addresses corporate liability for corruption where directors and senior management will be held personally liable for acts of corruption committed by the organisation, either by personnel or parties acting on behalf the organisation. Penalties include fines up to RM1 million and/or prison sentences of up to 20 years for those in charge of the company.
However, Section 17A allows a defence for the organisation, by proving it had in place “adequate procedures” designed to prevent person(s) associated with it from undertaking such a conduct. A Ministerial Guidelines on Adequate Procedures issued laid out five (5) key principles on how Adequate Procedures may be developed as lines of defence for commercial organisations as well as those in charge with governance and management of the organisation.
The programme will provide insights of the new provision and discuss the adequate procedures and its practical applications
