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MSWG Weekly Newsletter 18 May 2018 (May)
18 May 2018
MESSAGE FROM THE CEO
It has been an eventful two weeks.
Active politicians as directors of listed companies
Bank Negara Malaysia (BNM) is clear with its Corporate Governance requirement that a director of a financial institution must not be an active politician.
An active politician refers to an individual who is a member of any national or state legislative body, or who is an office bearer of, or holds any similar office or position in a political party.
In fact, when it comes to Anti Money Laundering requirements, Politically Exposed Persons (PEPs) are to be subjected to Enhanced Customer Due Diligence as opposed to normal Customer Due Diligence.
These requirements are testament to the fact that there is an increased risk when politics mixes with business and when we have politicians on the board of listed companies.
Even now, we can think of two or three listed companies, which have politicians or politically linked persons on their board, which are suffering negative publicity on allegations of fraud or malpractices...