Section 17A Adequate Procedures
The Guidelines on Adequate Procedures were launched by the Governance, Integrity and Anti-Corruption Centre (GIACC) under the Prime Minister’s Office of Malaysia on 10th December 2018. The guidelines are issued pursuant to subsection (5) of section 17A of the Malaysian Anti-Corruption Commission Act 2009 (Act 694), as stated in the Malaysian Anti-Corruption Commission (Amendment) Act 2018.
The objective of the Guidelines is to help commercial organisations develop the adequate procedures needed to prevent, detect and respond to corruption and to form a defence in the event that an outbound corruption incident occurs which could benefit the company. The Guidelines have been formed on the basis of five principles to be used by the organisation to establish their procedures as required by Section 17A.
The five adequate procedures principles for the acronym T. R. U. S. T.
- Top Level Commitment
- Risk Assessment
- Undertake Control Measures
- Systematic Review, Monitoring and Enforcement
- Training and Communication
What We Provide
Our AP Gap Analysis review identifies areas in a company’s anti-corruption programme that need to be established or enhanced to meet the adequate procedures requirements set out by the government. The gap analysis goes into the detail of each item required, with a rating to establish the current status. The data is used to produce a set of charts and graphs which show at a glance the current status of the company. The gap is then used to focus on the areas needing improvement, to close the gaps and bring the company up to the required level of adequacy.
Using the PMO’s Guidelines on Adequate Procedures as the basis, Trident helps companies establish the complete AP programme using the TRUST principles framework. Each programme is tailored to the company to ensure it is reasonable and proportionate, based on its size and structure.
The programme is designed to:
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- Safeguard and strengthen the integrity of the organisation based on its existing good practices
- Establish the adequate procedures required to safeguard the organisation, directors and management against corporate liability arising from MACC Amendment Section 17A
- Provide a strong legal defence in the event a corruption incident occurs which results in a Section 17A prosecution
Our programme has been developed over numerous successfully completed anti-corruption projects, combined with extensive research and discussions with leading experts in the field. Through the vigourous approach taken, our adequate procedures are of the highest quality and combine world-class expertise with practical application.
This approach is specially designed for Small and Medium Enterprises (SMEs) intending to fulfil the adequate procedures requirements in their own capacity without compromising the quality and effectiveness of the programme. Trident has designed an AP template of the the highest quality, with sample policies, procedures, forms and other essential materials for this specific purpose based on our extensive implementation expertise and experience. This programme equips organisations with the materials and technical support needed to establish their adequate procedures stated by the MACC Act at a very reasonable cost.
Conducting a thorough audit on the adequate procedures programme is one of the important components of the AP Guidelines, as stated in Principle IV: Systematic Review, Monitoring and Enforcement. It is essential for organisations to conduct regular reviews to assess the performance, efficiency and effectiveness of the anti-corruption programme, and ensure the programme is enforced. Conducting the audits requires a degree of technical expertise, so some companies prefer a specialist external auditor to carry out the work: a task Trident is well-equipped to do. Other companies seek help in equipping their own internal audit teams to do this, and so require training in this field: something Trident is also well-set up to provide. Please contact us for more information on our auditing and training services.
Once the adequate procedures programme has been established, directors have a question: “How adequate are our adequate procedures? How do we know?” This is where Trident’s unique level of experience and expertise really comes into play.
Adequacy Check
To assess the adequacy of your programme we conduct an implementation check using our extensive gap analysis framework. This often identifies areas in need of enhancement, so our report includes details of the action plan needed to bring the programme up to the required level. Best practice components are also included for the company to consider for future developments. By meeting the high standard of this framework, directors can gain assurance that their programme meets or even exceeds the adequate procedures requirements: a good place to be which secures peace of mind.
Effectiveness testing
Effectiveness testing takes the assessment to a higher level again. We use integrity surveys covering both internal and external parties to identify the current status of key elements of the programme, such as the degree of awareness on important policy points across the company. This tests the effectiveness of the training & communication programme. The survey also picks up other factors such as whether the company is considered to be ethical by the staff, or if there are indicators of corrupt behaviour occurring at the interface with external parties.
Enhanced auditing, and for some companies the use of data analytics, also helps build the picture of the company, identify to what extent the company has a culture of integrity, and therefore establish the overall Level of Integrity the company has at the current time. All these factors can be used to identify areas of improvement, create the necessary action plans, and build up the company to a position of strong integrity health.
Contact us for more information on adequacy assessments and effectiveness testing for your AP programme.