Malaysia: New provision in MACC Act allows graft busters to go after companies

  • The Malaysian Anti-Corruption Commission (MACC) will enforce and use a new provision in the MACC Act 2009, effective Jun 20, to allow commercial organisations involved in corruption to be prosecuted.
  • MACC deputy chief commissioner (operations) Azam Baki said the enforcement of Section 17A of the MACC Act fulfils international requirements under Article 26 of the United Nations’ Convention Against Corruption (UNCAC), in reference to Liability of Legal Persons.
  • He said before the provision came into existence, the MACC Act only focused on the prosecution of a natural person, that is, individuals involved in corruption.
  • Azam said under the new provision, a commercial organisation could be prosecuted if a person associated with the organisation commits a corrupt act that enables the organisation to acquire or retain a contract or interest.
  • “At the same time, the provision requires, as a precautionary measure, the commercial organisation to create policies and efforts to prevent corruption in the organisation,” he said.
  • He said in the drafting of the provision, the MACC had referred to various legal sources, both domestic and overseas.

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