KENANGA INVESTMENT BANK BERHAD SUSTAINABILITY REPORT 2024 BASIS OF THIS REPORT OUR APPROACH TO SUSTAINABILITY KENANGA AT A GLANCE GOOD GOVERNANCE LEADERSHIP STATEMENTS SUSTAINABLE ECONOMIC GROWTH ENVIRONMENTAL STEWARDSHIP EMPOWERING PEOPLE AND COMMUNITIES APPENDIX 39 38 9th Annual Regulatory Seminar In 2024, the Kenanga Group hosted its 9th Annual Regulatory Seminar (“ARS”), a learning programme focused on a wide range of regulatory and ethical issues, including conflicts of interest, anti-corruption, and AML/ CFT/ TFS obligations. The 9th ARS was held in conjunction with the 8th FAW and delivered through a specially curated e-learning module accessible via the LinkedIn Learning platform. Presented by invited speakers and internal subject-matter experts, the e-learning module addressed critical topics which included the following: In addition to the above, Group Prudential Supervision and Regulatory Affairs presented an awareness video titled “Confidently Navigating the Regulatory Landscape”, covering three (3) key regulatory topics during the 9th ARS 2024. The topics included: Approximately 95% of our employees completed e-tests on ethics, compliance, and the regulatory landscape, which were made mandatory during the ARS in 2024. Of those, 94% achieved a score of 80% or higher. This initiative reflects Kenanga’s continuous efforts to enhance employees' understanding and commitment to ethical business practices, transparency, and accountability. Combating Financial Crimes Kenanga adopts 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 illicit activities linked to unethical business practices. We have designed and implemented relevant internal policies, frameworks, and standards to safeguard our operations and the wider financial system from illegal and unethical behaviour. Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions (“AML/ CFT/ TFS”) • The AML/ CFT/ TFS internal policies, frameworks, and standards implemented by Kenanga serve as essential risk management tools to support the principles of sustainable banking. They ensure compliance with AML/ CFT/ TFS laws and regulations, mitigate money laundering, terrorism financing, and financial crime risks, promote financial stability, and uphold ethical and social responsibility standards. • AML/ CFT/ TFS initiatives have been implemented to monitor adherence to regulatory compliance standards. • Regular reviews of AML/ CFT/ TFS protocols are conducted through audits and assessments across all business units and branches to ensure regulatory compliance, particularly in the detection, monitoring, and reporting of suspicious transactions using a risk-based approach. Anti-Fraud, Bribery and Corruption (“AFBC”) • The Group’s AFBC Policy sets out Kenanga’s guiding principles for identifying and preventing fraudulent activities in all of its internal and external dealings. The AFBC Policy applies to the Board of Directors, Senior Management and all employees of Kenanga Group. • The AFBC Policy ensures that Kenanga Group meets the relevant standards and principles underpinning the introduction of the corporate liability provision (i.e. Section 17A of the Malaysian Anti-Corruption Commission Act 2009). • Our AFBC Policy stipulates that we do not make any political contributions, including lobbying, campaigns, or other activities. • We have adopted the Guidance on Conduct of Fraud and Corruption Risk Assessment in July 2021 specifying the review of anti-bribery and corruption (“ABC”) assessment results to be conducted every three (3) years. In this regard, Baker Tilly MH Consulting Sdn Bhd has completed the review of ABC risks affecting all our operations in 2022. • Since 2023, our Group Business Ethics and Integrity has put in place the new Guidance on Handling Incidents of External Fraud, which outlines steps employees should take if they identify incidents of ‘external fraud’. Code of Ethics and Conduct for Employees (“the Code”) • Our Code of Ethics and Conduct for Employees (“the Code”) reflect the professionalism and integrity standards expected of all employees when dealing with customers, business partners, regulators, or other key stakeholder groups. All new hires are required to sign an acknowledgment that they have read and understood the Code as part of the onboarding process. We periodically review the Code to ensure its effectiveness and compliance with regulatory requirements. GOOD GOVERNANCE GOOD GOVERNANCE Technological Advancements & Digitalisation 1 Sustainability & Disaster Recovery 3 Best Practices & Stakeholder Protection 2 Compliance – Barrier or Bridge? 1 Building a Sustainable Ecosystem in AI 6 Updates to the Personal Data Protection Act 5 AI and the Hybrid Paradigm: The Future of Unified Cybersecurity 7 How Adequate are Your Adequate Procedures? (Section 17A of MACC Act) 8 Defending Against Investment Scams: Harnessing Innovation and Cross-Functional Effort 9 Fraud Awareness: Staying Vigilant, Safeguarding Kenanga 4 Confidently Navigating the Regulatory Landscape 3 Proactive Management of Financial Crime 2
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