On 30 May 2019, the Malaysian Anti-Corruption Commission (“MACC”) has announced on the enforcement of the new provision in the MACC Act 2009 to be effective from 1 June 2020. This enforcement will enable the prosecution of commercial organisations and individuals involved in bribery and corruption activities.

The new Section 17A of MACC Act 2009 establishes a statutory corporate liability offence of corruption by commercial organisations under the Malaysian law, but also deems the director, controller, officer, partner or manager of the commercial organisation to be personally liable for the same offence if the commercial organisation is found liable, unless the relevant individual can prove that the offence was committed without his or her consent, and that he or she had exercised the requisite due diligence to prevent the commission of the offence.

In the event of conviction, the penalty for the offence is subject to a maximum fine of 10 times the sum of gratification involved, or RM1million, whichever is higher; a maximum jail term of 20 years; or both.

The corporate liability provision in Section 17A of MACC Act 2009 is modelled after Section 7 of the Bribery Act 2010 of United Kingdom.

IBDC is working towards assisting our clients in responding to the Act accordingly, by offering various consultancy and advisory services to evaluate our client’s extent of meeting the provision of the Act, to identify for any compliance gap, and also to assist in the implementation of the necessary safeguarding policies and practices. Our work can also be performed according to the ISO37001:2016 Anti-Bribery Management Systems (“ABMS”) framework.

“Section 17A was enacted to enable companies involved in corruption activities to be subjected accordingly to legal action.” As said by Datuk Seri Azam Baki, Deputy Chief Commissioner of MACC. “At the same time, the provision requires, as a precautionary measure, the commercial organisation to create policies and efforts to prevent corruption in the organisation.”

On 5 April 2018, the Malaysian Parliament amended the Malaysian Anti-Corruption Commission Act 2009 (MACC Act) to incorporate, among others, a new Section 17A on corporate liability for corruption.

Following the 14^th General Election of Malaysia held on 9 May 2018, the new Malaysian government, Pakatan Harapan, is working towards zero tolerance on corruption activities, and the corporate liability offence amendments to the MACC Act will serve as a channel for enforcement.

 

Source: Malaysian Anti-Corruption Commission (Amendment) Act 2018, Bernama.com.

On 30 May 2019, the Malaysian Anti-Corruption Commission (“MACC”) has announced on the enforcement of the new provision in the MACC Act 2009 to be effective from 1 June 2020. This enforcement will enable the prosecution of commercial organisations and individuals involved in bribery and corruption activities.

The new Section 17A of MACC Act 2009 establishes a statutory corporate liability offence of corruption by commercial organisations under the Malaysian law, but also deems the director, controller, officer, partner or manager of the commercial organisation to be personally liable for the same offence if the commercial organisation is found liable, unless the relevant individual can prove that the offence was committed without his or her consent, and that he or she had exercised the requisite due diligence to prevent the commission of the offence.

In the event of conviction, the penalty for the offence is subject to a maximum fine of 10 times the sum of gratification involved, or RM1million, whichever is higher; a maximum jail term of 20 years; or both.

The corporate liability provision in Section 17A of MACC Act 2009 is modelled after Section 7 of the Bribery Act 2010 of United Kingdom.

IBDC is working towards assisting our clients in responding to the Act accordingly, by offering various consultancy and advisory services to evaluate our client’s extent of meeting the provision of the Act, to identify for any compliance gap, and also to assist in the implementation of the necessary safeguarding policies and practices. Our work can also be performed according to the ISO37001:2016 Anti-Bribery Management Systems (“ABMS”) framework.

“Section 17A was enacted to enable companies involved in corruption activities to be subjected accordingly to legal action.” As said by Datuk Seri Azam Baki, Deputy Chief Commissioner of MACC. “At the same time, the provision requires, as a precautionary measure, the commercial organisation to create policies and efforts to prevent corruption in the organisation.”

On 5 April 2018, the Malaysian Parliament amended the Malaysian Anti-Corruption Commission Act 2009 (MACC Act) to incorporate, among others, a new Section 17A on corporate liability for corruption.

Following the 14^th General Election of Malaysia held on 9 May 2018, the new Malaysian government, Pakatan Harapan, is working towards zero tolerance on corruption activities, and the corporate liability offence amendments to the MACC Act will serve as a channel for enforcement.

 

Source: Malaysian Anti-Corruption Commission (Amendment) Act 2018, Bernama.com.