As to what amounts to ‘adequate procedures’, the Minister had on 4 December 2018, through the Prime Minister’s Department, released the ‘Guidelines on Adequate Procedures Pursuant to Subsection (5) of Section 17A Under the Malaysian Anti-Corruption Commission Act 2009’. Further, Malaysia does have a system of certification in relation to anti-bribery mechanisms and procedures implemented by commercial organisations known as the ISO 37001.
The ISO 37001 Anti-bribery Management System Certification
The ISO 37001 is a standard of Anti-Bribery Management designed to help commercial organisations prevent, detect and respond to bribery incidences. The ISO 37001 set out the requirements and guidance in assisting an organization establish an efficient anti-bribery management system. Essentially, the ISO 37001 certification seeks to address 2 key areas:
- Bribery by the organisation, its employees or persons associated with the organisation for its own gain; and
- Bribery of the organisation, its employees or persons associated with the organisation
There are numerous benefits to the ISO 37001 certification, including:
- Establishes a risk-based anti-bribery management system to optimise the identifying and managing of bribery;
- Heightens the organisation’s ability to detect fraud;
- Enhances an organisation’s reputation and image by assuring legal compliance and commitment to anti-bribery practices; and
- Provides confidence and trust to the public.
Anti-Bribery Policies and Procedures – A Prudent Practice
Section 17A places a heavy burden on the commercial organisation in which the management of the commercial organisation is responsible for the conduct of its employees and affiliated persons. With the Malaysian government’s announcement on 21 May 2020 that Section 17A of the MACC Act will come into force on 1 June 2020, it is prudent that commercial organisations ensure that they have in place anti-bribery policies and measures to address and prevent corporate corruption.
Dated: 21 May 2020
Jointly written by Richard Wee (Messrs Richard Wee Chambers) and Bryan Boo (Messrs Bryan & Co). Assisted by Wendy Ho and Divagar of Messrs Richard Wee Chambers