Corporate Criminal Behaviour Flashcards
Main corporate criminal behaviour (5 answer)
IMCFP
1) Insider trading
2) Money laundering
3) Corruption and bribery
4) Fraudulent and Wrongful trading
5) Potential criminal activity in the operation, management and winding-up of companies
Related ACT in corporate criminal behaviour
1) CAPITAL MARKET AND SERVICES ACT (CMSA) 2007 (Insider Trading)
2) ANTI MONEY LAUNDERING AND ANTI TERRORISM FINANCING ACT 2001 (AMLA) (Money laundering)
3) MALAYSIAN ANTI CORRUPTION COMMISION ACT (MACCA), 2009 (Corruption and Bribery)
4) COMAPNIES ACT (CA) 2016 (Fraudulent & Wrongful trading) (Potential criminal activity)
INSIDER TRADING
(Capital Market & Service Act, 2007)
Who is an insider?
Person possess information (know/ought to know) :
- which is not generally available
- the information has material effect on the price or value of the securities
INSIDER TRADING
(Capital Market & Service Act, 2007)
An insider is prohibited from?
(3 answer)
1) acquiring or disposing securities after possessing the info
2) procuring (encourage other), directly or indirectly on acquiring or disposing the scurities
3) communicating the information to another person
INSIDER TRADING
(Capital Market & Service Act, 2007)
Punishment for the offences:
CRIMINAL LIABILITY:
- imprisonment not exceeding 10 years
- fine not less than RM1 MILLION
CIVIL LIABILITY:
- civil remedy is available to a person who has suffered loss or damage as a consequence of a breach of the insider trading
MONEY LAUNDERING
(Anti Money Laundering and Anti Terrorism Financing Act, 2001)
What is money laundering?
The process of making illegal / unlawful proceeds to appear as having a legal source
It is a criminal offence if:
- engages in, OR attempts to engage in
- abets (cover) the commission of
MONEY LAUNDERING
(Anti Money Laudering and Anti Terrorism Financing Act, 2001)
Punishment for the offences:
CRIMINAL LIABILITY
1) fine not exceeding RM5 MILLION
2) Imprisonment not exceeding 5 years
CORRUPTION AND BRIBERY
(Malaysian Anti Corruption Commision Act, 2009)
Any person who:
1) Corruptly solicits
2) Receive or agree to receive
3) Gives, promises or offer
4) Claiming/ intending to deceive someone for obtaining
5) Abuse of position
CORRUPTION AND BRIBERY
(Malaysian Anti Corruption Commision Act, 2009)
Punishment for the offences:
CRIMINAL LIABILITY
1) imprisonment max 20 years
2) fines not less than 5 times of the amount of the gratification OR
2) RM10000 whichever higher or both
CORRUPTION AND BRIBERY
(Malaysian Anti Corruption Commision Act 2009)
Duty to report bribery transaction:
If fail to report:
OFFICER:
- fines not exceed RM100000
- imprisonment not exceed 10 years
PUBLIC:
- fines not exceed RM10000
- imprisonment not exceed 2 years
FRAUDULENT TRADING
(Companies Act, 2016)
Do something with the intent to defraud creditors of the company
- must prove ‘dishonest intention’
FRAUDULENT TRADING
(Companies Act, 2016)
Punishment for the offences:
CRIMINAL LIABILITY:
- imprisonment not exceed 10 years
- fine not exceed RM1 MILLION
WRONGFUL TRADING
(Companies Act, 2016)
When the:
- DIRECTOR or
- COMPANY SECRETARY
made a debt contract with no reasonable and probable ground of expectation
after taking into consideration that the company is UNABLE TO PAY DEBT
and cause the company to WINDING UP
it is a WORNGFUL TRADING
WRONGFUL TRADING
(Companies Act, 2016)
CIVIL LIABILITY
- the DIRECTOR will be liable of the whole/part of the debt
- imprisonment not exceed 5 years
- fines not exceed RM500000
POTENTIAL CRIMINAL ACTIVITY
(Companies Act, 2016)
An offence if:
1) Does not make proper disclosure to the liquidator
2) Do not deliver documentation to the liquidator
3) Within 12 month of winding up:
a) concealed property
b) remove property
c) altered any book
d) false entry to book
e) obtained credit
f) pawned/disposed property which was still on credit
