Malaysia Introduces Corporate Liability Bill

Malaysian Parliament

The Malaysian Government has proposed amendments to the Malaysian AntiCorruption Commission Act 2009 that will make corporations liable for the corrupt practices of its associated persons. The amendments are set out in the Malaysian Anti-Corruption Commission (Amendment) Bill 2018 (“Bill”) that was tabled for first reading in the Malaysian Parliament on 26 March 2018.

Corporate Liability

The corporate liability provisions are modelled on the Bribery Act in the United Kingdom. It criminalises commercial organisations (which includes Malaysian companies and foreign companies conducting any business in Malaysia) if an associated person corruptly gives any gratification with intent to obtain or retain business, or an advantage in the conduct of business, for the commercial organisation.

An “associated person” includes directors and employees, and could extend to third party service providers.

Source: Brian Chia and Kherk Ying Chew – Baker & McKenzie | mondaq