PROVISION UNDER SECTION 17A OF THE MACC ACT 2018 TAKES EFFECT FROM 1ST JUNE 2020.
The Malaysian Anti-Corruption Commission’s (MACC) corporate liability law provision under Section 17A of the MACC Act 2018, which was passed by the Parliament in 2018, will enable the prosecution of business entities involved in corruption. This provision takes effect on Monday, 1st June 2020.
Previously, the MACC Act only focuses on the prosecution of individuals involved in corruption. Section 17A was enacted to enable organisations involved in corruption activities to be subjected to legal action and persons associated with the organisations will be deemed to commit the corresponding offence unless it can be proven that adequate measures have been put in place. Section 17A(2) states that the penalty for the offence shall be a fine of not less than 10 times the value of the gratification in question or RM1 million, whichever is higher or imprisonment for not more than 20 years, or both.
The provision will encourage commercial organisations to take appropriate and consistent steps to ensure their businesses do not engage in corrupt activities for their interests. We hope members will take note of the provision and comply accordingly.
Should you have any enquiries, please contact MBAM General Manager, Mr Lenny Lim at 03-79848636.
Download MBAM Circular click here