Anti Corruption Bulletin - Issue 1
10 January 2020
As Corporate Malaysia approaches the 1 June 2020 coming into force of the Corporate Liability provisions of the Malaysian Anti-Corruption Commission (MACC) Act 2009, Bursa Malaysia issued related updates to its Listing Requirements.
Specifically, this included amendments to the Listing Requirements to now require that companies listed on the Main and ACE Markets and their boards ensure that:
- Policies and procedures that, at a minimum, are guided by the GIACC-issued Guidelines on Adequate Procedures (“GAP”), are established and maintained;
- Policies and procedures on whistle-blowing are established and maintained;
- That these policies and procedures are reviewed periodically, and no less often than once every 3 years;
- Corruption risk assessment is performed as part of the issuer’s annual risk assessment; and
- Policies on anti-corruption and whistle-blowing are published on the issuer’s website.
While these amendments to the Listing Rules, and their date of coming into force, may appear to be no more than a re-iteration of the GAP, the implications are significant. The MACC Act simply allows that the implementation of adequate procedures may be a defence, implying that commercial organisations may choose to accept the risk of bribery and therefore not implement any specific or additional procedures. Likewise, the GAP is merely a set of principles that an organisation may choose to implement, i.e. they are recommendation. The amendments to the Listing Rules however now effectively change these recommendations into a mandate: listed issuers may no longer choose to implement controls meeting the T.R.U.S.T. principles laid out in the GAP - they must.
The T.R.U.S.T principles form the 5 pillars on which the GIACC recommends adequate procedures be built, namely Tone from the top, Risk assessment, Undertake control measures, Systematic review, monitoring and enforcement, and Training and communication.
With less than 6 months to 1 June 2020, the need for Corporate Malaysia to take steps to ensure its readiness is critical. This is now especially so for the corporates listed on the Main and ACE Markets of Bursa Malaysia.
BDO is actively assisting clients with the development, assessment and enhancement of their anti-corruption management systems based on the GAP and our methodologies founded upon ISO 37001 Anti-bribery Management Systems. We can assist with anti-corruption risk assessments, gap analysis by benchmarking against the available guidelines, design and development of risk assessment based systems and controls, awareness training as well as monitoring review of the effectiveness of anti-corruption management systems.
To complement your Anti-bribery Management System, BDO also provides the BDO EthicsLine solution, a web-based whistleblower portal, tailored to your needs and which meets all the criteria laid out in the GAP document. Currently available in Bahasa Malaysia, English and Mandarin, this portal is operated by our Forensic professionals independently from your organisation, and is secure, confidential and easily accessible to all your stakeholders and the general public via any Internet-enabled device, from anywhere around the Globe.
Contact us if you have any questions, would like additional information, or would like to know how BDO can help.