Anti-Bribery & Anti-Corruption Training Material

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Important Note:

This material was developed for educational purposes only and is not intended to suit any
particular entity. The Bank accepts no liability or responsibility whatsoever for any loss,
damage, cost or expense to any party resulting directly or indirectly from the use of, or
referral to, or reliance on, this training material by any party, whether wholly or partially.

This material shall not be reproduced, redistributed transmitted or shared, directly or

indirectly by any means to any other party or published electronically or via print, in whole
or in part, for any purpose without our prior written permission. When no longer needed, it
should be immediately deleted from all electronic storage devices and/or any other
retrieval system of any nature and any hardcopies made should be destroyed. The
intellectual property in the presentation belongs to Hong Leong Investment Bank Berhad
unless specifically indicated otherwise.

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Table of Content Page
1) Anti-Bribery and Anti-Corruption (ABC) Regulations in Malaysia 4
2) What is Corruption and Bribery? 8
3) ABC Control Measures 13
4) Reporting and Escalation 23
5) Consequence of Non-Compliance 27
6) Our Responsibilities 29
7) Useful Links 31

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1. Anti-Bribery and Anti-Corruption Regulations in Malaysia

In Malaysia, the main legislation is

the Malaysian Anti-Corruption
Commission Act (MACC Act)
2009 The MACC Act 2009 came
into effect on 1 January
2009
It led to the official establishment
of the Malaysian Anti-Corruption
Commission (MACC) as an
independent, transparent and
professional body The MACC (Amendment) Act
2018 came into effect on 1
October 2018 except Section 4
1 June 2020 - effective date of (Provision on corporate liability)
implementation of Section 17A of
the MACC (Amendment) Act 2018
on Corporate Liability

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1. Anti-Bribery and Anti-Corruption Regulations in Malaysia

In 2018, the MACC Act 2009, was amended to include a

Corporate Liability Provision (Section 17A).

Enforcement of Corporate Liability Provision took effect from 1

June 2020.

Section 17A of the MACC (Amendment) Act 2018 establishes a new statutory corporate
liability offence of corruption by a commercial organisation.

A commercial organisation can be held liable for their failure to prevent corrupted practices
by employees / associated persons done in the interest of the organisation, whether or not
the top level management had actual knowledge of the corrupt acts.

Commercial organisations may be acquitted of a charge if they are able to show adequate
measures are set up to prevent employees/ associated persons from undertaking corrupt
practices.

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1. Anti-Bribery and Anti-Corruption Regulations in Malaysia

Corporate Liability – Guidelines on Adequate Procedures

The guidelines are issued pursuant to subsection (5) of section 17A of the MACC Act 2009, as
stated in the MACC Amendment Act 2018.
The 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.

T Top level commitment

R Risk assessment

U Undertaking of control measures

S Systematic review, monitoring and

enforcement
https://f.datasrvr.com/fr1/119/75252/Prime_Mini
sters_Department_-
T Training and communication _Guidelines_on_Adequate_Procedures.pdf

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1. Anti-Bribery and Anti-Corruption Regulations in Malaysia

Corruption Offences

Main offences stipulated in the MACC Act 2009

Receiving Bribe Offering Bribe

Main
offences Intending to Deceive
Not Reporting Bribery stipulated (False Claims)
in MACC
Act 2009

Abuse of Power or Attempts to Commit the

Position Offences

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2. What is Corruption and Bribery?

Corruption is the act of giving or receiving of any gratification or reward in

the form of cash or in-kind of high value for performing a task in relation to
his/her job description.

Bribery is a type of corruption. It refers to the act of corruptly authorising,

giving, agreeing to give, promising, offering, soliciting, receiving, or
agreeing to receive any gratification.

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2. What is Corruption and Bribery?

Types of Bribery
Bribery takes many forms. The benefit may not only be money. It can be anything of value to the
person being bribed, amongst others, such as:

Cash

Travel and Gifts and

Events entertainment

DONATE

Preferential
Charity / political
selection
donation
(employee/vendor)

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2. What is Corruption and Bribery?

Types of Corruption

Bribery

Nepotism Influence peddling

Corruption
Patronage Cronyism

Embezzlement

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2. What is Corruption and Bribery?

Common Excuses for Bribery and Corruption

People find various excuses for justifying bribes or corruption. None of these represent good
business practice or provide any defence under the law.

“We’ve always
done it…”
“But my boss
“That’s the way also does it …”
things work here”

“If only we’d known

“It was only a small that it would be
hamper and a lunch treat regarded as
for him and his bribe…”
partner…”

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2. What is Corruption and Bribery?

Who can be liable under Corporate Liability?

Director
Consultant Clerk
Procurement Team Vendor
Supplier The Bank Manager
Human Resource
Service Provider

IN SHORT, THE BANK AND YOU*

* Anyone that is performing work or services for or on behalf of the Bank

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 3. ABC Control Measures

Introduction
Hong Leong Investment Bank (“HLIB” or “the Bank”) has an established Anti-Bribery and
Corruption Policy (“ABC Policy”) with reference to the MACC Act, which sets out strong
‘tone from the top’ against all corrupt practices, which includes the framework for
implementation, and the responsibilities of the Associated Person in regards to observing
and upholding the Bank’s zero-tolerance position on corruption and bribery.

The Bank’s ABC Policy applies to all directors, employees (whether temporary, fixed-term,
or permanent), trainees, seconded staff, casual workers, agency staff, volunteers, interns,
agents of the Bank.
■
The Bank also expects its partners, contractors, sub-contractors, consultants,
representatives and others performing work or services for or on behalf of the Bank, or any
other person associated with the Bank to comply with the Bank’s ABC Policy when
performing such work or services.

The Bank’s Anti-Bribery and Corruption Policy can be found at https://www.hlib.com.my/ for
your reference.

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3. ABC Control Measures

Bank’s Policy on Anti-Bribery and Anti-Corruption

The policy document is issued in April 2020 and it sets out the framework and
responsibilities of all, employees and others performing work or services for or on
behalf of the Bank (“Associated Person”) in regards to observing and upholding the
Bank’s zero-tolerance position on corruption and bribery.

It outlines the Bank’s commitment to uphold all laws and regulatory requirements
relating to anti-bribery and anti-corruption.

Violation of this Policy will be taken seriously and the Bank will undertake
necessary actions, including the review of employment or appointment, disciplinary
actions, dismissal, stop third party contractors/service providers from further
business dealings etc. and report to the relevant authorities, consistent with the
requirements of the relevant laws and regulations.

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3. ABC Control Measures

Bank’s Policy on Anti-Bribery and Anti-Corruption

The policy documents highlights the following principles on anti-bribery and anti-
corruption

Code of Conduct & Ethics Control Measures

1 This Policy must be read in conjunction

with the Bank’s Code of Conduct &
Ethics. 5
Control measures shall be implemented by the Bank
includes Due Diligence, Reporting Channel, Conflict of
Interest, Gifts and Entertainment, Donation and
Sponsorship, Facilitation Payments, Financial Controls,
Responsibilities and Commitments Procurement and Record Keeping
of:

2 Board of Directors and its respective

Committees
Senior Management
Review, Monitoring and Enforcement
Review of ABC programme by Internal Audit and
Associated Persons

Role of Bank’s Compliance Function

6 Compliance
Monitor performance of personnel in relation to this Policy
Enforcement - appropriate action to be taken as against

3 Roles of Compliance division in

handling ABC matters.
non-compliance of this Policy

Training and Communication

4
Risk Assessment
Frequency, intent and review of ABC
risk assessment report
7 The bank shall develop appropriate training and
communication plan on anti-bribery and corruption for
relevant parties.

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3. ABC Control Measures

Due Diligence
In accordance to the Bank’s ABC Policy, the Bank shall ensure and expect that Associated
Persons share the Bank’s zero-tolerance position against bribery and corruption.

Associated Person
Directors, staff (whether temporary, fixed term, or permanent),
trainees, interns, seconded staff, agency staff, casual workers,
volunteers, agents, partners, contractors, subcontractors,
vendors, suppliers, service providers, consultants,
representatives and others performing work or services for or on
behalf of the Bank.

Hence, the Bank shall undertake due diligence to assess the integrity of the Associated Persons,
which shall include background checks or document verification or conducting interviews,
prior to entering into any formalized relationship with them and periodically thereafter.

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3. ABC Control Measures

Procurement - Guiding Principles

The Bank will ensure that appropriate Guiding Principles and controls are implemented to
govern the conduct of the procurement activities of the Bank. These will include:

Eliminate use, remove Value for money

waste and control
usage

Fair dealing, open and Integrity and ethical

effective competition behaviour

Responsible financial Assessment of

management suppliers
3. ABC Control Measures

Conflict of Interest

What is A conflict of interest is a situation in which a person or organization is

Conflict of involved in multiple interests, financial or otherwise, and serving one
Interest? interest could conflict against another.

The Bank seeks to ensure that a conflict of interest does not affect the interests of the
Bank, its shareholders, clients and other stakeholders through the identification,
prevention and management of the conflict of interest. Hence,

We must not allow any conflict of interest, bias or undue influence of others to
override our business and professional judgment.

We must not be influenced by friendship or association in performing our role.

Decisions must be made on a strictly arms-length business basis.

All Associated Persons shall declare any personal interest he/she or persons
connected to the Associated Person may have in any Bank’s decision or matter
he/she is involved in.
3. ABC Control Measures

Conflict of Interest

DOs DON’Ts
Ensure that no other staff Take advantage of any information
should misuse their obtained in the course of duty for
position. personal benefit.

Discourage customers and Make use of your position to solicit or

brokers from offering them receive favours from customers.
gifts, favours or services.
Use the Bank’s name or facilities for
Report misuse of position personal advantage in political,
or such irregularities in investment or retail purchasing
confidence to the Bank. transaction, or in similar types of
activities.
3. ABC Control Measures

PROHIBITED GIFTS & ENTERTAINMENT

The following gifts and entertainment are prohibited to be accepted or offered by the Bank’s staff:

Any amount of cash or cash equivalent as a form of a monetary gift

(angpows, gift cards, vouchers etc.)

Any other forms of gifts and/or entertainment, in exchange for an act by the
Bank or an act for the benefit of the Bank

Any other forms of gifts and/or entertainment for purposes which are
prohibited under the laws of Malaysia, e.g. bribery and corruption

Gifts or entertainment received that are not approved will be returned or refunded back to the
person who provided the said gift or entertainment.

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3. ABC Control Measures

Donation and Sponsorship - Do’s and Don’ts

DOs DONTs
Ensure recipients are of reputable Give or accept political donations and
sponsorships
standing

Ensure donations and sponsorships Give donations and sponsorships that

are permitted by law are not permitted by law

Give or accept donations and

Conduct proper due diligence on sponsorships without obtaining
the recipients of the donations or internal approval
sponsorships
Allow a party connected to the
Ensure necessary internal approval recipient to participate in the approval
is obtained of donations and sponsorships

Give or accept donations and

Ensure it is declared and
sponsorships without proper due
documented diligence

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3. ABC Control Measures

Facilitation Payment

Payment made to secure or expedite the performance of an action or a

What is
service that the Bank is entitled to, example: where a government
Facilitation
official is given money or goods to perform (or speed up the
Payment?
performance of) an existing duty.

The Bank will not make any facilitation payment.

Fees paid in exchange for a lawful express or preferential service, e.g. quick turnaround visa
and passport services or police escort services are not considered as Facilitation Payment
provided that they fulfil the following conditions:

The fee is
The fee is in not payable A legal and
The service accordance to official
is open and with an official individuals, receipt by the
available to and published but to the organisation
everyone price list organisation or entity can
or entity be provided.

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4. Reporting and Escalation

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To whom you should escalate and report if you witness a misconduct
or wrongful act?

Senior Management

1
Escalate the issue to
senior management
in verbal and writing

Human Resource
Division

2 Raise & report the

misconduct to HR
Division

Whistleblowing Channels

3
Fill up and send the
bank’s whistleblower
form to the bank

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Whistleblowing

Whistleblowing is the act of reporting of suspected wrongdoing, misconduct, unethical activity

within public, private or third-sector organisations.

Who can raise concerns? What to raise and escalate?

➢ Any employee of Hong Leong ➢ Any criminal offences,
Investment Bank. including fraud, corruption,
bribery and blackmail.
➢ Any (legal or natural) person
including those providing ➢ Any failure to comply with
services to, or having a legal or regulatory
business relationship with the obligations.
Bank.

Whistleblowing
Will there be any action taken against you?
No! You will be protected from retaliation and from disclosure of your
identity, provided your disclosure was made in good faith

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Whistleblowing

Reports of suspected wrongdoing, misconduct or unethical

activity concerns may be made to the following person:

Chairman of the Board Audit and Risk Management

Committee

Level 28, Menara Hong Leong, No. 6, Jalan Damanlela,

Bukit Damansara, 50490 Kuala Lumpur

[email protected]

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5. Consequences of Non-Compliance

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Fine and Penalties for Offenses

Receiving and giving of corrupt gratification (bribery)

The MACC Act 2009 Sections 16 and 17

Fine of not less than 5 times the amount of the bribe or RM10,000
whichever is higher; and

Jail sentence not exceeding 20 years.

Corporate Liability on corruption

MACC (Amendment) Act 2018 Section 17A

Fine of not less than 10 times the amount of the bribe or RM1
million whichever is higher; and/or

Jail sentence not exceeding 20 years.

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6. Our Responsibilities

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 Ensure and
follow proper
policies and
procedures

Do not
Be familiar with
participate in
the law
bribery

What are our

responsibilities?
Understand
Report your
where the risk of
concerns to
bribery or
relevant parties
corruption is in
in the event of
our organization,
bribery or
Understand the industry, and
corruption
impact of a country
bribery incident
to our
organization

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 USEFUL LINKS
1. MALAYSIAN ANTI-CORRUPTION COMMISSION WEBSITE
https://www.sprm.gov.my/en/enforcement

2. MALAYSIAN ANTI-CORRUPTION COMMISSION ACT 2009

https://www.sprm.gov.my/images/Akta-akta/SPRM_act_BI.pdf

3. MALAYSIAN ANTI-CORRUPTION COMMISSION (AMENDMENT) ACT 2018

http://www.federalgazette.agc.gov.my/outputaktap/20180504_A1567_BI_Act%20A1567.pdf

4. NATIONAL ANTI-CORRUPTION PLAN 2019-2023

https://www.pmo.gov.my/wp-content/uploads/2019/07/National-Anti-Corruption-Plan-2019-2023_.pdf

5. WHAT IS CORRUPTION
https://www.sprm.gov.my/index.php/en/education/what-is-corruption

6. BANK’S ANTI-BRIBERY AND CORRUPTION POLICY

https://www.hlib.com.my/Files/HLIB%20ABC%20Policy.pdf

7. BANK’S WHISTLEBLOWING POLICY

https://www.hlib.com.my/Files/HLIBWhistleblowingPolicy.pdf

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