29 KENANGA INVESTMENT BANK BERHAD Annual Report 2022 Embedding Ethical Principles We are committed to ensuring that our employees are well equipped to meet the challenges of their respective roles and demonstrate behaviours that align with the Group’s values. Our training sessions are delivered in a blended format that includes reading materials and explainer videos on topics such as Anti-Bribery and Corruption, Anti-Money Laundering/CounterTerrorism Financing/Targeted Financial Sanctions (“AML/CFT/ TFS”), and Anti-Fraud practices which were made mandatory for all new hires. The Group Financial Crime Compliance (“GFCC”) Department has conducted an Enterprise-Wide Risk Assessment (“EWRA”) to assess potential AML/CFT/TFS risks. The EWRA considers customers, country, product and services, and transactions or delivery channel risk. Currently, no significant risks have been identified. As part of Kenanga’s ongoing commitment to combat fraud in the financial industry, the Group organised its sixth (6th) annual Fraud Awareness Week (“6th FAW”) in collaboration with the Association of Certified Fraud Examiners’ (“ACFE”) International Fraud Awareness Week. This flagship campaign aligns with the UNGC’s 10th Principle to emphasise the need for businesses to work against corruption in all its forms. The Annual Regulatory Seminar (“ARS”) has been incorporated as one of the key events for the annual FAW. Approximately 85% of our employees completed e-tests on ethics and compliance as well as the landscape and regulatory expectations on AML/CFT/TFS which was made mandatory to all our employees during the ARS, with 97.5% achieving a score of 80% or higher. The 6th FAW drew over 2,000 participations in FY2022, with attendees from external organisations and our employees. 6th Fraud Awareness Week (“FAW”) Key Policies, Frameworks and Commitment Statements 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. Our Group Regulatory and Corporate Services has established a robust governance foundation, including corporate policies, procedures, and control measures to help the Group navigate risks and respond to any incidents of noncompliance or unethical behaviour. To safeguard our operations as well as the wider financial system, we have designed and implemented several internal policies, frameworks and standards. In 2022, we have updated the following policies: • PDPA Data Access and Retention Procedure; • Cyber Security Procedure; • Technology Risk Management Framework; and • Group Donation Policy. Future Outlook In line with regulatory requirements, we remain committed to maintaining the highest standards of good governance. Moving forward, we will continue to enhance our governance practices by regularly reviewing and updating our policies as relevant. For more information on Good Governance, please refer to pages 33 to 42 of our Sustainability Report 2022 and the Ethics and Compliance Statement on pages 97 to 109 of this Annual Report. OUR SUSTAINABILITY STATEMENT
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