Corporate Matters & Business Impact

Corporate Liability is not Shelved – Adequate Procedures More Crucial Than Ever in the Face of COVID-19 Corruption and Fraud Risks

COVID-19 has forced businesses into survival mode, especially with restrictions on how businesses can operate during the Conditional Movement Control Order and, before this, the Movement Control Order (collectively, the "MCO") period. From shifting to new methods of transacting to partnering with new business associates, businesses have had to change the way they operate to stay in the black. Post-MCO, businesses will clamber to make up for lost time and revenue. It is tempting to assume compliance responsibilities can take a back seat during such trying times, but companies cannot fall victim to this fallacy

In light of Section 17A of the Malaysian Anti-Corruption Commission Act 2009 coming into effect on 1 June 2020, this Update highlights the risks of corruption exacerbated by COVID-19 which companies need to be aware of, and offers some suggestions of practical adequate procedures to implement.