In April 2018, the Malaysian Parliament passed the corporate liability amendment to the nation’s anti-corruption legislation, the Malaysian Anti-Corruption Commission Act of 2009, reflecting the change in our understanding of how corruption works and how it must be managed. This new amendment to the act will dramatically alter the role of corporations in the fight against corruption by placing them on the front lines.
This amendment aligns the MACC Act with the high standards set by powerful legislation around the world, such as the American Foreign Corrupt Practices Act (FCPA), and the United Kingdom’s Bribery Act (UKBA). These laws have made headlines in recent years due to the heavy fines and jail sentences arising from the prosecutions of corrupt practices, not to mention the damage dealt to corporations’ reputations.
“The MACC Amendment introduces corporate liability to Malaysian businesses for the first time,” said our CEO Dr Mark Lovatt. “Effectively this means that directors and senior management will be held liable for the actions of the company resulting in heavy fines and jail sentences.”
“Companies will have to show they have successfully implemented ‘adequate procedures‘ designed to prevent bribery from occurring,” Lovatt said, stressing the need for corporations to establish programmes and systems based on ISO 37001. “This is a major step forward for corporate governance in Malaysia, and reflects international legislation in this area.”
What does this mean for your company?
This new law brings increased risks to Malaysia’s business sector. However, there is a window of opportunity for businesses to proactively protect their operations against these new challenges. If a company has in place the adequate procedures to reduce the risk of bribery and corruption occurring, it will be in a good position to safeguard itself from incurring significant punitive measures.
These procedures are likely to include an anti-bribery management system based on standards established by the ISO 37001. Trident Integrity’s consultants are experts in implementing the adequate anti-bribery and anti-corruption policies and procedures that your company needs to shield itself from legal risks, costly fines and penalties, and reputational damage.
Whatever the case may be, companies no longer have an excuse to remain complacent when it comes to protecting their businesses against the risk of corruption or internal mismanagement. Call us now, and let’s work together to protect your business.