KENANGA ANNUAL REPORT 2019

H OW W E A R E G O V E R N E D 1 2 3 4 5 63 6 7 Results from the Survey implied a positive perception of current ethics and integrity culture of the Group. This could indirectly indicate acknowledgement and appreciation of the employees on the efforts and initiatives already undertaken by the Board and Senior Management on the subjects. Nevertheless, the Group will continue to undertake the necessary enhancements in the areas, especially in addressing the small percentage of negative responses. The above undertakings are envisioned to create a culture of strong ethical values within the Group that is founded on collective responsibility and accountability that flows from the Board and Senior Management to all other employees. Furthermore, a uniform benchmark of ethics and integrity applicable across the different entities, divisions and departments of the Group will ensure good corporate governance overall. ACCOMPLISHMENTS AND HIGHLIGHTS OF OUR CONTINUED COMMITMENT Throughout 2019, GRCS continued its commitment to foster a culture of compliance and good corporate governance by ensuring that all relevant policies and procedures are reviewed periodically. This on-going exercises are premised on the fact that the policies and procedures are aligned with the latest industry standards, address arising issues and meet the regulators’ expectations. Through these recurring review and revision, GRCS is able to incorporate elements of ethics and integrity as required so employees adhere to them in various aspects of their day-to-day functions. • Anti-Money Laundering and Counter Financing of Terrorism (“AML/ CFT”) The Group’s AML/ CFT Policy & Procedure has incorporated the required practices, control measures, guidance and direction in our effort to combat money laundering, terrorism financing and targeted financial sanctions risks. Pursuant thereto, we are devoted to enforcing a robust and effective AML/ CFT framework in adherence to all related laws, regulations, guidelines and industry best practices towards ensuring the management of the Group’s financial crime risks to mitigate potential regulatory and reputational risk. ETHICS AND COMPLIANCE STATEMENT With the rapid evolution of the AML/ CFT regulatory landscape, modus operandi and technological developments coupled with rapidly growing markets and complex business structures, we consistently enhanced our efforts to strengthen our ability to combat financial crimes. This is evidenced by the on-going deployment of a management information system for timely detection, monitoring and reporting of suspicious activities and towards streamlining the Group towards the Risk-Based Approach and Management promulgated by the regulators. The Group had also developed numerous AML/ CFT Programmes to closely monitor the level of AML/ CFT adherence in line with the expectations of Bank Negara Malaysia (“ BNM ”) and the Securities Commission Malaysia (“ SC ”). Continuous enhancement of processes and monitoring standards were also carried out to be in line with best practices and to be able to better respond to any potential money laundering and terrorism financing threats. • Anti-Fraud, Bribery and Corruption The financial industry, more so than any other industry, is susceptible and vulnerable to incidents of fraud, bribery and corruption. Fraud, bribery, and corruption go against KIBB’s core values and undermine the viability of business and operations. Thus, we are committed to preventing bribery in any form including but not limited to offering or receiving bribes, kick-backs or facilitation payments, as well as any other manifestation of corrupt and unethical business practices. In achieving its goals above, the Group adopts a robust and all-encompassing strategy to prevent, detect, and investigate incidences of fraud, bribery and corruption whilst holding perpetrators to account. In this regard, the Group Anti-Fraud, Bribery and Corruption Policy sets out a comprehensive framework and provides clear direction and guidance for employees to abide by. This approach also extends to ensuring that the relevant employees undertake due diligence in relation to fraud, bribery and corruption on all new and potential business partners. As a measure of implementation, communication of the Group Anti-Fraud, Bribery and Corruption Policy to all employees is done through an in-house system. Additionally, employees are also trained via various initiatives to raise awareness on fraud, bribery and corruption.