What is Section 17A of the MACC Act?

Section 17A introduces corporate liability, holding commercial organisations accountable if an associated person commits a corruption offence to obtain or retain business for the organisation.

When did Section 17A come into effect?

It came into force on June 1, 2020, following amendments to the Malaysian Anti-Corruption Commission Act 2009.

What is the 'adequate procedures' defence under Section 17A?

Organisations can avoid conviction if they prove they had adequate procedures in place to prevent associated persons from committing corruption, as outlined in the MACC Act's guidelines.

Who can be held liable under Section 17A?

Both the commercial organisation itself and its senior management (directors, partners, controllers) can be held liable unless they prove the offence was committed without their consent or connivance and they exercised due diligence.

What are the penalties for non-compliance?

Penalties can include a fine not less than 10 times the gratification amount (or RM1 million, whichever is higher), or imprisonment up to 20 years, or both.