Malaysia’s Corporate Liability Effective 1 June 2020 – Adequate Procedures Guidelines Issued

In a speech delivered on 10 December 2018, the Prime Minister of Malaysia announced that the corporate liability amendments to the MACC Act will be brought into force on 1 June 2020.

Further, I had earlier written about the important defence of adequate procedures. It is a defence for an organisation to show it had adequate procedures in place to prevent such associated persons from carrying out the corrupt conduct.

The Prime Minister’s Department has also now issued the Guidelines on Adequate Procedures pursuant to section 17A(5) of the MACC Act. The guidelines (in the Malay and English version) can also be download from the Governance, Integrity and Anti-Corruption Centre (GIACC) website. Continue reading

MACC States that the Corporate Liability Law in force in 2020

The Edge and The Malaysia Gazette reported that the Malaysian Anti-Corruption Commission has stated that the corporate liability provision of the MACC Act will be in force in 2020. This two-year period is in line with my earlier post on the Parliamentary debate during the tabling of the Amendment Bill.

The one takeaway of this new corporate liability is this. Essentially, when a person associated with a company commits a corrupt act to obtain a business advantage, this will expose the company to committing a criminal offence. This will then have serious repercussions on the directors and management of the company.

Continue reading