KENANGA ANNUAL REPORT 2020

68 3 1 2 4 5 6 7 HOW WE ARE GOVERNED • Membership in the Malaysian Chapter of the ACFE (“MACFE”) Kenanga Group continues to encourage and support the growth and development of its employees as it is vital that they are at the forefront when it comes to critical issues concerning anti-fraud and the related measures. In such spirit, Kenanga Group had sponsored the membership of its ACFE members in MACFE. The MACFE serves as domestic platform for ACFE members to network and build strong professional relationships while fulfilling continuing education criteria as required. • Enhanced AML/CFT/TFS Reviews Kenanga Group has rolled out numerous AML/CFT/TFS reviews on the integrity of the screening function, risk scoring methodology, cash threshold reporting, branch practices and system reviews based on the programs to closely monitor the level of adherence in line with the expectations of Bank Negara Malaysia and the Securities Commission Malaysia. Enhancement of processes and monitoring standards are also carried out continuously to be in line with best practices and to be able to better respond to potential money laundering and terrorism financing threats. • Employee Trading via Explainer Video Kenanga Group issued the “Know Your 5Ws Requirements on Employee Trading” via a video to all employees of KIBB as an outreach programme to educate and re-enforce the requirements in relation to employees’ trading as stipulated in the Group Chinese Wall Policy. The key highlights in the Explainer Video were the do’s and dont’s of trading in securities in order to avoid potential violations of the applicable law and regulations on insider trading, as well as, ensuring the integrity of the market. MAINTAINING A HIGH LEVEL OF CORPORATE GOVERNANCE DetailsonKenanga InvestmentBankBerhad’scorporategovernance disclosure are available in the Corporate Governance Overview Statement appearing on pages 41 to 61 of this Annual Report and Corporate Governance Report which is available on KIBB’s website at https://kenanga.com.my/investor-relations/AGM2021. OUR EMPHASIS IN THE YEAR AHEAD AMIDST THE NEW NORMAL • Forging Ahead by Leveraging on Technology for Compliance in a Digitalised Landscape The opportunities that come with digital transformation are numerous. While the focus is often times, on using technology to improve services or to have an edge in market competitiveness, GRCS has undertaken appropriate measures to meet the compliance imperatives in light of these changes. GRCS constantly keeps updated on the transformations in the compliance landscape arising from digitalisation. Specific focus is given on raising awareness and developing broader skill sets to enhance understanding of the emerging range of Regtech and Fintech platforms. In 2021, we will continue to leverage on technology in the execution of our compliance roles and functions for Kenanga Group. • Executing Targeted Control Measures to Manage Fraud, Bribery and Corruption Risks With the introduction of section 17A of the MACCA and the increased emphasis and scrutiny by the regulators on having corporations undertake businesses ethically without fraud, bribery and corruption, one of the key focus of GRCS in 2021 is to execute targeted measures on evaluating and advising departments, divisions and subsidiaries within Kenanga Group on areas which may pose heightened risks due to their nature. In this regard, engagements, guidance and recommendations will be employed to educate and counsel the relevant personnel towards management of risks related to fraud, bribery and corruption. • Elevating Organisational Culture of Ethics and Integrity and Highlighting Accountability Planned initiatives will be deployed for employees to appreciate and continue to always do what is “right” in line with the principles of ethics and integrity of Kenanga Group. This is particularly so as employees adapt to the further changes anticipated in a post-pandemic setting. Additionally, as observed in Australia, Singapore, Hong Kong and the United Kingdom, the implementation of enhanced individual accountability regimes by regulators continues. In this regard, GRCS will proactively highlight the significance of taking accountability for actions and conduct in the work that we do in Kenanga Group. • Manage Threat of Financial Crimes GRCS has embarked on a project to develop an AML/ CFT/TFS Business Wide Risk Assessment to ensure the comprehensiveness of the assessment of money laundering and terrorism and proliferation financing risk profile and effectiveness of risk control measures taking into account key activities, client segments, geographical areas, products and services, transactions and delivery channels, as well as, recent developments in AML/CFT/TFS laws and regulations. More interesting and interactive trainings on AML/CFT/TFS shall also be organised to further enhance the knowledge and awareness of employees on the expected standards to be implemented and the latest AML/CFT/TFS trends. ETHI CS AND COMPL IANCE STATEMENT