40 ABOUT THIS REPORT WE ARE KENANGA LEADERSHIP STATEMENTS SUSTAINABILITY AT KENANGA KENANGA INVESTMENT BANK BERHAD SUSTAINABILITY REPORT 2023 GOOD GOVERNANCE Combating Financial Crimes Kenanga takes a zero-tolerance approach to all forms of financial crime including bribery, fraud, corruption, the direct or indirect financing of terrorism, money laundering, proliferation financing and any other forms of illicit activity connected to unethical business practices. To safeguard our operations, as well as the wider financial system, we have designed and implemented relevant internal policies, frameworks and standards. Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions (“AML/ CFT/ TFS”) • The AML/ CFT/ TFS internal policies, frameworks, and standards implemented by Kenanga are one of the essential risk management tools that support the principles of sustainable banking by ensuring compliance with AML/ CFT/ TFS laws & regulations, mitigating money laundering/ terrorism financing and financial crime risk, promoting financial stability, and upholding ethical and social responsibility standards. • Multiple AML/ CFT/ TFS initiatives have been implemented to closely monitor adherence levels for compliance with regulatory standards. • Regular reviews of AML/ CFT/ TFS protocols via regular audits, assessments, reviews on a group-wide basis and feedback mechanisms, are carried out across all Business Units and branches to uphold regulatory compliance, particularly in prompt detection, monitoring, and reporting of suspicious transactions on a risk-based approach. • By continuously reinforcing our AML/ CFT/ TFS initiatives, Kenanga remains vigilant in safeguarding our operations and protecting stakeholders’ interests, thereby fostering trust and confidence in Kenanga’s operations. Anti-Fraud, Bribery and Corruption (“AFBC”) • The Group’s AFBC Policy establishes Kenanga’s guiding principles for identifying and preventing fraudulent activities in all of its internal and external dealings. The AFBC Policy is to be complied with by the Board of Directors, Senior Management and all employees of Kenanga Group. • The AFBC Policy ensures that it meets the relevant standards and principles which underpins the introduction of the corporate liability provision (i.e. Section 17A of the Malaysian Anti-Corruption Commission Act 2009 (“MACC Act 2009”). • As per our AFBC Policy, we do not make any political contributions, including lobbying, campaigns, or other activities. In July 2021, we implemented the Fraud and Corruption Risk Assessment Guidance, which stipulates that the review of anti-bribery and anti-corruption (“ABC”) assessment results should be conducted every three (3) years. As a result, 100% of our operations are assessed for corruption-related risks through the ABC risk assessments. In June 2023, our Group Business Ethics and Integrity launched the new Guidance on Handling Incidents of External Fraud, which specifies the actions to be taken by the employees should they identify incidents of ‘external fraud’. Code of Ethics and Conduct for Employees • Our Codes of Ethics and Conduct for Employees reflect the professionalism and integrity standards that all employees are expected to uphold when dealing with customers, business partners, regulators or other key stakeholder groups. We require all new hires to sign an acknowledgment that they have read and understand the Code as part of the onboarding process. The Code will undergo periodic review to ensure its effectiveness and compliance with any regulatory requirements. In FY2023, we recorded zero incident of fraud, bribery, or corruption within the Group
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