Corporate Criminal Liability for Corruption in Malaysia

Abstract

ABSTRACT

Corruption is considered one of the major offenses in the corporate world. Previously, the Malaysian Anti-Corruption Act 2009 only imposed liability on individual members, which include directors and shareholders of the company. The recent amendment to the Act imposed criminal liability on business organizations under the new Section 17A, which took effect on June 1, 2020. To date, there is only one prosecution made against a company in 2021, but it is yet to be decided. This paper aims to analyze the extent of criminal liability imposed on corporations and study the defenses for corruption regarding other corporate crimes and the UK Bribery and Corruption Act 2010. A qualitative approach was used by focusing on the doctrinal analysis of legislation and decided cases. The analysis reveals that criminal liability is not only imposed on the corporations but also on the individuals behind the corporations. This provision also shifts the burden of proof to commercial organizations to prove that adequate procedures have been put in place. Besides guidelines by MACC, there is no Malaysian precedent case over adequate procedures yet; hence, reference is made to decided cases in the United Kingdom.