The Malaysian Anti-Corruption Commission (MACC) Act was amended in 2018 to introduce corporate liability for corruption offences, which applies to Malaysian commercial organisations.
of corporates have suffered fraud or economic crime, up from 28% in 2016.
of corporates reported that they have suffered bribery and corruption in the last 2 years.
> USD 1 million
losses reported by 22% of corporates who experienced fraud or economic crime in the last 2 yrs
Source: PwC Global Economic Crime and Fraud Survey 2018: Malaysia report
A commercial organisation commits an offence if any person associated with the commercial organisation commits a corrupt act in order to obtain or retain business or advantage for the commercial organisation.
If charged, it is a defence for the commercial organisation to prove that it had in place adequate procedures to prevent persons associated with the commercial organisation from undertaking such conduct.
This is why it is critical for corporates to have the appropriate systems in place in order to prevent such offences from occuring.
Source: Malaysian Anti-Corruption Commission (Amendment) Act 2018
The provision of corporate liability in the newly amended MACC Act 2018 is similar to the UK Anti-Bribery Act 2010.
Since enforcement of the Act in the UK, a few highly reputable corporates have been prosecuted as they failed to prove that adequate procedures were put in place to detect, prevent and respond to bribery and corruption cases. Aside from hefty fines and penalties, these corporates may even suffer reputational damage.
The Amendment aims to elevate Malaysia’s standing as a world-class player in combating bribery and corruption. To minimise risks, it is therefore important for organisations to ensure they have "adequate procedures" in place.