Advisory on Section 17A under the Malaysian Anti-Corruption Commission (“MACC”) Act 2009

Section 17A of the MACC Act 2009 which was introduced under the MACC (Amendment) Act 2018 was gazetted on 4 May 2018. On 10 December 2018, PM Tun Mahathir Mohamad launched the Guidelines on Adequate Procedures issued pursuant to subsection 5 of Section 17A of the MACC Act 2009. The enforcement of Section 17A has taken effect on 1 June 2020 and these guidelines are intended for commercial organisations to future proof themselves against action.

As stated under Subsection 17A (4), 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.

The objective of these guidelines is to assist all commercial organisations in understanding and implementing adequate procedures within their organisation to prevent the occurrence of corrupt practices in relation to their respective businesses activities. The Commercial Organisation may be liable whether or not its top level management and/or representatives had actual knowledge of the corrupt acts of its employees and/or associated persons. Given the wide definition of an associated person, a Commercial Organisation can be liable for the acts of such third parties. eg runners, consultants, contractors, contract workers, outsourced marketing representatives, etc.

It is therefore necessary for your Board of Directors and senior management personnel to fully understand the provisions of Section 17A and the Adequate Procedures that needs to be implemented in your respective organisations to ensure that you and your Organisation can defend and insulate itself from prosecution.

For more detail, please refer here