August 14, 2019

KEY HIGHLIGHTS

1. What is it all about ?

  • The Malaysian Anti-Corruption Commission (MACC) will enforce a new provision in the MACC Act 2009 effective from June 2020 to enable the prosecution of commercial organisations involved in corruption.

The enforcement of Section 17A of the MACC Act would be to fulfil the international requirements under Article 26 of the United Nations Convention Against Corruption (UNCAC), which refers to the liability of legal persons. 

2. What is the main difference with the “old" act? 

Before this, the MACC Act only focused on the prosecution of individuals involved in corruption. 

Section 17A was enacted to enable companies involved in corruption activities to be subjected accordingly to legal action.

3. How will it affect businesses?

Under the new provision, a commercial organisation could be prosecuted if a person associated with the organisation commits a corrupt act to enable the organisation to acquire or retain a contract or interest.

The provision  requires businesses operating in the country to introduce adequate procedures to prevent acts of corruption.

Without such procedures such as internal guidelines or staff training, companies and their directors could be prosecuted under Section 17A if an associated person such as an employee or subcontractor is caught involved in corruption for the benefit of the commercial organisation.

PRESENTATION SLIDES

For more, view the full presentation by Mr Westmoreland Anak Ajom, Assistant Commissioner, Financial Analysis Division, Malaysian Anti-Corruption Commission (MACC) Putrajaya.