103 KENANGA INVESTMENT BANK BERHAD Annual Report 2022 • Anti-Fraud, Bribery and Corruption Kenanga is subject to the provisions of the MACCA as well as applicable local laws, rules, and regulations on anti-fraud, bribery and corruption issued by the relevant regulatory authorities. In this regard, Kenanga takes a zero-tolerance approach against all forms of fraud, bribery and corruption and requires the same approach from our Board, Senior Management as well as our employees. Similarly, Kenanga expects the same commitment from all third parties that we deal with on any matter and in any manner. The Group Anti-Fraud, Bribery and Corruption Policy (“AFBC Policy”) sets out the guiding principles for Kenanga to address and manage fraud, bribery and corruption risks in all our dealings. The AFBC Policy specifies the principles in relation to top-level commitment, group-wide risk assessment and control measures as well as monitoring and training programs of Kenanga. In line with the AFBC Policy, the Group Anti-Fraud, Bribery and Corruption Reporting Procedure (“AFBC Reporting Procedure”) was updated in 2022. The AFBC Reporting Procedure further detail the requirements and procedures for the Board and employees in relation to reporting of instances of fraud, bribery and corruption and the actions required to be taken in this regard. • Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions (“AML/CFT/TFS”) The rapid-evolving financial crime arising from ransomware, cryptocurrencies and the remaining impact of COVID-19 pandemic on money laundering have continued to be the trend of 2022. With the global effort led by Financial Action Task Force to combat money laundering, terrorism financing and proliferation financing (“ML/TF/PF”) and to protect the integrity and stability of the international financial system, Kenanga has continued to strengthen the AML/CFT/TFS compliance framework in line with Kenanga's zero-tolerance of financial crime. These are demonstrated through, amongst others: • The top-level commitment, i.e. tone from the top for good AML/CFT/TFS compliance culture and corporate governance; • Enterprise-wide Business-based Risk Assessment to identify, assess, manage and mitigate the ML/TF/ PF risks in relation to the operations and business; • Robust AML/CFT/TFS compliance framework comprising policy and procedures that define the standards, governing policies, principles and controls in managing the risks of ML/TF/PF on a risk-based approach; and • Internal controls to detect, deter and prevent Kenanga from being a conduit for ML/TF/PF In addition, digital acceleration continues to be the key effort of Kenanga to upgrade the automation of systems to ensure compliance with regulatory requirements and expectation, mitigate compliance and reputational risk, and stay competitive in business. • Code of Conduct for Employees Good conduct is critical to delivering positive outcomes for our clients, stakeholders and capital markets at large. We empower our employees to do what is right by setting clear expectations through the Group Code of Ethics and Conduct for Employees (“Employees Ethics Code”), as well as by providing the support, tools and resources that employees need to act ethically, along with clear information about the various resources available to escalate concerns. Kenanga places confidence on our employees and the Employees Ethics Code is a testament to this belief that our values are reflected through the conduct and behaviour of our employees. All employees are expected to observe high standards of professionalism, integrity UPHOLD HIGH STANDARDS OF CORPORATE GOVERNANCE The Board maintains oversight of the ethics and compliance risks exposure to ensure effective implementation of the management strategies, frameworks and policies. In this regard, GRCS works closely with all stakeholders with the aim of aligning business direction with the established strategies, frameworks and policies that instil a culture where professionalism, ethics and compliance are key priorities. ETHICS AND COMPLIANCE STATEMENT
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