Anti-Corruption Policies and Procedures Guidelines on Adequate Procedures
In 2018, the National Centre for Governance, Integrity, and Anti-Corruption Centre (GIACC) launched the Guidelines on Adequate Procedures under subsection (5) of section 17A of the Malaysian Anti-Corruption Commission Act 2009 (Act 694), as amended by the Malaysian Anti-Corruption Commission (Amendment) Act 2018. The Adequate Procedures Guidelines aim to assist commercial organizations in understanding and implementing effective measures to prevent corrupt practices within their business activities. These guidelines are structured around five key principles, encapsulated by the acronym T.R.U.S.T, which serve as reference points for developing anti-corruption policies, procedures, and controls mandated by the statutory provisions.
Enhancing Anti-Corruption Policies and Procedures
Our approach to enhancing anti-corruption policies and procedures emphasizes effectiveness. Many organizations implement “paper policies” rather than effective measures that address real corruption risks. Our methodology focuses on creating practical and implementable policies tailored to each organization’s strategic goals and operational realities.
Following the gap analysis, our work may involve reviewing and updating existing policies or developing entirely new ones to align with anti-corruption imperatives. Guided by the Adequate Procedures Guidelines, this process includes:
- Reviewing and Updating Charters and Committees:
◦ Board charters
◦ Audit committee mandates - Enhancing Policies:
◦ Anti-Bribery and Corruption Policy
◦ Gift and Entertainment Policy
◦ Whistleblowing Policy
◦ Conflict of Interest Policy
◦ Relevant business unit policies (e.g., Procurement, HR, Business Development) - Strengthening Corruption Risk Management Frameworks:
◦ Updating financial and non-financial controls
◦ Securing top management endorsement of upgraded policies and procedures
◦ Enhancing monitoring and evaluation processes - Developing Robust Training and Communication Strategies:
◦ Ensuring widespread understanding and compliance
Conclusion
Effective anti-corruption policies and procedures are integral to mitigating risks and fostering a culture of integrity within organizations. Our tailored approach ensures that policies are not only compliant but also practical and aligned with organizational objectives. By embedding these principles, organizations can enhance their resilience against corruption while reinforcing their commitment to transparency and ethical business practices.