ANTI-BRIBERY

AND
ANTI-CORRUPTION
“Integrity, transparency and the fight against corruption
have to be part of the culture. They have to be taught as
fundamental values.”

– Angel Gurria –
(Secretary-General of the Organisation of Economic
Co-operation and Development (OECD))
Course Summary
This course describes the Anti-Bribery and Anti-Corruption
laws in Malaysia, identifies areas of corruption as well as
ways to prevent corruption in the workplace. It details the
responsibilities of employees in complying with the
organisation’s Anti-Bribery and Anti-Corruption Policy and
describes the consequences of failure to comply with this
policy.
Anti-Bribery and Anti-Corruption

Module 1 – An Introduction to Bribery and Corruption

Module 2 – Corruption at the Workplace

Module 3 – Compliance to the Organisation’s Anti-Bribery and Anti-

Corruption Policy
 Module 1 Learning Objectives

1
Describe the difference between
bribery and corruption.

2 Describe Anti-Bribery and

Anti-Corruption laws in Malaysia.

3 Explain Section 17A of the MACC Act.

Please click ‘Next’ once you have completed each page.

 What is Bribery?

Bribery is an act of offering or receiving something of value in exchange

for some form of influence or action in return. It involves dishonestly in
persuading someone to act in your favour by giving a gift of money or
other inducements.

There are two types of bribery, active bribery and passive bribery. Active
bribery is offering payment and asking for favours, whereas passive
bribery is accepting a bribe. Both offering and accepting bribes are illegal
and punishable by law.

Types of bribery:

 Cash  Kickbacks
 Charity-political donations  Influence peddling referred as “trading”
 Gifts and entertainment  Excessive commissions
 Travel and events  Promotion
 Facilitation payments  Unwarranted allowance or expenses
 What is Corruption?

Corruption refers to the abuse of entrusted power for personal gain,

such as any dishonest or fraudulent behaviour wherein someone
uses their position of power to benefit themselves at expense of
others.

Corruption can occur in either the public or private sector. It can

range from small favours between a few people to massive-scale
corruption that affects the whole government. Petty corruption,
grand corruption and systemic corruption are the three main
scales of corruption.

Types of corruption:
 Fraud  Extortion/blackmail
 Collusion  Creating or using false documents
 Money laundering  Scams on fraudulent schemes
 Embezzlement  Trading of Information
 Abuse of power  Clientelism/favouritism
Anti-Bribery and Anti-Corruption Regulations in Malaysia

In Malaysia, the main legislation to combat corruption is the Malaysian Anti-Corruption

Commission Act (MACC Act 2009). The MACC Act 2009 came into effect on the 1st of January 2009

The Act provides for the establishment of the Malaysian Anti-Corruption Commission (MACC) as an
independent, transparent and professional body

The MACC (Amendment) Act 2018 came into effect on the 1st of October 2018
(Provision on Corporate Liability)

However, the effective implementation date of Section 17A of the MACC (Amendment)
Act 2018 on Corporate Liability was on the 1st of June 2020
 Anti-Bribery and Anti-Corruption Laws in Malaysia

The functions of the Malaysian Anti-Corruption Commission are:

To receive, consider and investigate any reports of offence

under this Act.

To instruct, advise and assist any person/s, on the latter’s

request, on ways in which corruption may be eliminated.

To educate the public against corruption.

To enlist and foster public support against corruption.

To detect and investigate:

 Any suspected offence under the MACC Act 2009.

 Any suspected attempt to commit any offences under this Act.
 Any suspected conspiracy to commit any offences under this Act.
Corruption Offences Under the MACC Act 2009

Solicit/accept/receive
Offer/give gratification
gratification

Main
Offences
Not reporting an act False Claim
of gratification
stipulated in (Intending to deceive)
the MACC
Act 2009

Abuse of power or Bribery of an officer of

position (Public Body) A Public Body
 Gratification

Gratification as defined by MACC Act includes:

Any service or favour, e.g. protection from penalty, disciplinary proceedings, civil or criminal proceedings,
forbearance from the exercise of a right;

Abuse of office, dignity, employment, contract of employment or services, and agreement to give
employment or render services in any capacity, using the office or position for gratification;
Any valuable consideration, discount, commission, rebate, bonus, deduction or percentage;

Payment, release, discharge or liquidation of any loan, obligation or other liability;

Any forbearance to demand any money or money’s worth or valuable items;

Money, donations, gift, loans, fees, rewards, security, property interests;

Financial benefit or similar advantage;
Any offer, undertaking, or promise of any of the above.
What is Section 17A of the MACC Act?

The MACC Act 2018 introduced a new statutory liability offence under Section 17A of the MACC Act
2009 which came into effect on the 1st of June 2020.

Under Section 17A, a commercial organisation is deemed to have committed an offence if any person
associated with the commercial organisation commits a corrupt act in order to obtain or retain business
for the said organisation.

Commercial organisations may be acquitted of a charge if they are able to show adequate procedures
were set up to prevent employees or associated persons from undertaking corrupt practices. It is a
defence for the commercial organisation to prove that the commercial organisation had in place
adequate procedures to prevent persons associated with the commercial organisation from
undertaking such conduct.
 Corporate Liability Provisions: Section 17A

Section 17A stipulates that persons considered associated with a

commercial organisation includes :
A person who performs
services for or on behalf
of the commercial
A partner An employee A director organisation.
 Adequate Procedures Guidelines

The guidelines of Section 17A of the MACC Act 2009, as stated in the MACC
(Amendment) Act 2018.

These guidelines are designed to be principle-based (T.R.U.S.T) and for general

application by any commercial organisation of any size and industry.

Top level commitment

GUIDELINES

Risk assessment

Undertake control measures

Systematic review, monitoring & enforcement

Training and communication

Anti-Bribery and Anti-Corruption

Module 1 – An Introduction to Bribery and Corruption

Module 2 – Corruption at the Workplace

Module 3 – Compliance to the Organisation’s Anti-Bribery and Anti-

Corruption Policy
Module 2 Learning Objectives

1
Describe the Anti-Bribery and
Anti-Corruption Policy.

2
Identify the areas of corruption and ways
to prevent corruption at the workplace.
 Anti-Bribery and Anti-Corruption Policy

Key Principles:

1 No gift policy

Prohibit business hospitality, entertainment, or travel benefits from third parties as these may influence
2 good judgement and impede independent decision-making.

Facilitation payment is prohibited unless it is necessary to avoid injury, loss of life or liberty and is subjected
3 to the approval of the Group CEO.

Charitable contributions, donations, and sponsorships are acceptable provided they are not used to
4 conceal bribery or corruption and are in compliance with the organisation’s guidelines and procedures.
Potential areas of corruption that you need to be aware of:

1 Third Parties

Gifts, Entertainment and Corporate Hospitality

2
3 Charitable Donations

Facilitation Payments
4
5 Conflict of Interest
Third Parties

Third parties pose a significant risk of bribery. Companies could be held responsible for bribery by
their intermediaries, such as agents, consultants, advisers, and other third parties.

Third parties as defined in ISO 37001 “Anti-Bribery Management Systems” include:

I Business Associates II Government Officials III Customers IV Other Stakeholders

To minimise and manage the risk from third parties, the organisation should:

Perform adequate Record the Communicate to all third Monitor the

due diligence before services parties that they must comply conduct of
engaging third parties provided by with applicable laws and with third parties
third parties the company’s policies and
procedures that are applicable
to third parties
Gifts, Entertainment and Corporate Hospitality

The exchange of gifts, entertainment, and corporate hospitality may strengthen business
relationships. However, it is important to understand that there is a thin line between corruption and
the provision or acceptance of gifts, entertainment and corporate hospitality.

An employee is not allowed to accept or provide hospitality and entertainment offers particularly
from parties engaged in a tender or competitive bidding exercise. For example, spa treatments, dinner,
massage etc.

We should:

Adhere to the “No Gift” policy.

Decline entertainment and corporate hospitality offers.

Charitable Donations

Charities can benefit communities and also help build better public relations. However, charitable
donations could also be used as a conduit for bribery.

For example, charitable donations as political favours:

Some trustees or charities may be politicians and other officials.
Charitable donations are considered as briberies if they benefit these individuals personally.

Donations can only be made if:

They are made in accordance with all legal requirements.

They are not made to secure any improper business or other advantages.

They are not in violation of the country's laws.

Facilitation Payments

Offering, promising or requesting facilitation payments are just as prohibited as actually paying or receiving
facilitation payments. Facilitation payments need not involve cash or other financial assets, they can be in any
form of inducement.

Facilitation payment is prohibited unless it is necessary to avoid injury, loss of life or liberty, such as payments
made as a bribe to secure or expedite the performance of a routine or necessary action to which the payer of the
facilitation payment has legal or other entitlement. Facilitation payment is also commonly known as ‘duit kopi’ or
‘under-the-table money’.
Conflict of Interest

Conflict of interest is not explicitly defined in the MACC Act.

ISO 37001 “Anti-Bribery Management Systems”

defines Conflict of Interest as “a situation where
business, financial, family, political, or personal
interests could interfere with the judgment of persons
in carrying out their duties for the organisation.”

You should:

Make a conflict of interest declaration to the HR immediately

when such conflict arises.
Consult HR if you are uncertain about conflict of interest position.
 Some examples of conflict of interest include:

An employee reports to a supervisor who is a relative or close friend An employee provides paid consulting services on the weekends to a
and has control over their job responsibilities, salary, and promotion. Company’s client/customer or supplier/vendor/contractor.

A manager dates an employee who reports directly to him/her. An employee works part time for a competitor of the Company.

A procurement staff hires his/her brother-in-law to provide vending An employee starts a Company that provides products or services
machines to the Company’s lunch areas. like those of clients of his/her full-time employer.

A procurement staff accepts gifts, fees or other personal favours A member of the Company’s board of directors accepts fees and
from a vendor and then selects the vendor’s products for purchase provides advice to another Company that is in direct competition with
by the Company. the Company.

An employee who is a member of the Company’s employee selection An employee accepts free gifts and free products from a vendor and
team fails to disclose that he/she is related to a job applicant who is then recommends the purchase of these products to the Company
being considered for a position. without comparing them to comparable products from other vendors.
Anti-Bribery and Anti-Corruption

Module 1 – An Introduction to Bribery and Corruption

Module 2 – Corruption at the Workplace

Module 3 – Compliance to the Organisation’s Anti-

Bribery and Anti-Corruption Policy
Module 3 Learning Objectives

Describe your responsibilities in complying

1 with the company’s Anti-Bribery and
Anti-Corruption Policy.

Identify the consequences of failure to

2 comply with the company policies and
procedures.
What are Your Responsibilities?
Do not participate in corruption
and bribery

Be familiar with the regulatory

requirements

Strictly comply with company’s

policies and procedures

Consult when in doubt

Report any corruption or bribery

related concerns
What is Whistleblowing?

Whistleblowing is an essential policy that is necessary within an organisation to protect its

employees, customers, and their organisation itself from unethical activities.

A trusted whistleblowing channel promotes a healthy corporate culture.

An effective channel followed by effective investigations and enforcements acts as a stand

against corruption and encourages high levels of integrity.

Whistleblowing may be made in respect of any of the following:

Incidents of fraud, corruption or bribery Misuse of company’s property or information

Money laundering Theft or embezzlement

Abuse of power Any other misconducts or offences subject to

company’s discretion.
 Consequences of Non-Compliance – Legal and Regulatory

In general, as an employee, you may be subjected to disciplinary action in the event that you
fail to comply with your company’s policies and procedures.

From a regulatory stand point, your non-compliance with the MACC Act (i.e. your actions) as
an employee may expose yourself and the company to the following consequences:

Impact to the company and its

Impact to an individual offender
directors/controllers/officers/partners

 A fine of not less than 5 times the sum of gratification  A fine of not less than 10 times the sum of gratification
involved or RM10,000 whichever is higher involved or RM1 million whichever is higher

 Imprisonment for a term not exceeding 20 years; or  Imprisonment for a term not exceeding 20 years; or

 Both penalties of the fine and imprisonment  Both penalties of the fine and imprisonment
Consequences of Corruption - Others

Loss of public confidence

Loss of reputation Direct financial loss

Adverse effect on staff Destroys trust in the organisation

 STOP
CORRUPTION

Congratulations!
You have successfully completed the
“Anti-Bribery and Anti-Corruption”
Course.

RM