BY GURDIAL SINGH NIJAR
(Deputy President, HAKAM)
“BLOW the whistle” if you spot illegal, unethical or questionable acts, says Bank Negara. This is part of its policy to improve governance of banks and other financial institutions.
In the last 12 months, two key banks were fouled for non-compliance of laws. AmBank Group was slapped with a fine of RM53.7 million. The CIMB Group was required to initiate an independent review of its processes relating to the transfer of US$7 million for questionable purposes. The chairman of AmBank Group, which is at the centre of the 1MDB money trail, said that money launderers are getting smarter despite tougher regulations.
Bank Negara’s freshly-minted guidelines include a detailed whistleblowing policy that all banks and financial institutions must implement. They must set up a comprehensive system that allows for complaints to be made not only within the bank structure but to other regulators or law-enforcement agencies. Third parties dealing with banks – such as contractors and consultants – must be informed of this policy. And there must be periodic reporting and monitoring to oversee and assess that the policy is implemented and working effectively.
These guidelines could not come at a more propitious time – given the battering of Malaysia’s image internationally involving money laundering.
The guidelines actually operationalise the 2010 Whistleblower Protection Act – which was put in place to combat corruption and other wrongdoings. It is meant to encourage employees and others to report certain kinds of wrongdoing – whether in the public or private sector. As a whistleblower you’re protected by law – you shouldn’t be treated unfairly or lose your job or suffer any form of direct or indirect adverse consequence because you “blow the whistle”. Read more
