KENANGA ANNUAL REPORT 2018

58 KENANGA INVESTMENT BANK BERHAD ETHICS AND COMPLIANCE STATEMENT All in all, the three (3)-year plan seeks to meet the following objectives: YEAR 1 YEAR 2 YEAR 3 • Establish an Ethics Framework specifying roles and responsibilities of all parties. • Identify specific ethical issues related to the high risk areas. • Map proposed control measures against regulatory requirements and industry practice. • Identify control measures to address the specific ethical issues. • Engage owners of affected areas for consideration from business perspective. • Develop and implement ethics standard policies and procedures relevant to the employees and business activities. • Develop and implement education and training programs for continuous awareness and understanding. • Develop and administer whistleblowing related matters. • Establish reporting obligations by business and operations on ethics issues. • Conduct reviews and assessments on adequacy and effectiveness of the control measures. • Conduct reviews to assess compliance with the ethics standard policies and procedures. • Execute or propose enhancements to the control measures (where applicable). • Incentivise ethics of employees. • Strengthen the ethical values towards creation of ethics and integrity culture of the Group; • Strengthen the commitment and the sense of responsibility and accountability vis-à-vis ethics and integrity values of the Board, Senior Management and all other employees of the Group; • Establish standard of ethical and integrity business practices across the different entities, divisions and departments of the Group; • Establish appropriate control measures to curtail cultural drivers of corporate offences and misconducts that could arise as a result of unethical behavior and lack of integrity; and • Ensure adequacy and effectiveness of the overall corporate governance, vis-à-vis promotion of ethical and integrity business practices. In the long run, the EGS could justify the controls in place to manage misconducts. In turn, it is hoped that it could act as a defence to avoid or lessen impact of regulatory action and safeguard reputation of the Group. STATEMENT ON ETHICAL AND COMPLIANCE BUSINESS CONDUCT Taking cognisance of the increased focus by regulators on compliance, ethics and integrity, particularly involving treatment to clients and misconduct by employees, the Group has placed a greater emphasis in promoting orderly and transparent conduct of business. We continue to ensure enhancement of existing and introduction of new governance measures within the Group as we strongly believe that ethics and integrity should not be consigned to the back burner. • Anti-Money Laundering and Counter Financing of Terrorism (“AML/ CFT”) We are committed to enforcing strong and effective AML/ CFT Framework in compliance with all related laws, regulations, guidelines and industry best practices towards ensuring that the Group’s financial crime risks is tactfully managed to mitigate potential regulatory and reputational risk. Our AML/ CFT Framework incorporated in the Group AML/ CFT Policy & Procedure has put in place the required control measures, guidance and direction for the detection and minimisation of AML/ CFT risks.