KENANGA INVESTMENT BANK BERHAD INTEGRATED ANNUAL REPORT 2024 WE ARE KENANGA OUR SUSTAINABILITY APPROACH LEADERSHIP STATEMENT HOW WE ARE GOVERNED FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION ADDITIONAL INFORMATION OUR VALUE CREATION APPROACH 121 120 - Strengthening Anti-Bribery and Corruption Risk Assessment Kenanga Group takes proactive measures to evaluate bribery and corruption risks, engaging Baker Tilly MH Consulting Sdn Bhd (“BTMHC”) in 2022 to conduct an extensive review. This assessment aligns with the Guidelines on Adequate Procedures and underscores the importance of periodic evaluations of every three (3) years to uphold compliance. The review, covering all Kenanga Group entities, confirmed the effectiveness of our existing policies, procedures, and controls in managing high-risk areas. Following these insights, BTMHC recommended further expanding the assessment scope to align with the Securities Commission Malaysia’s best practices on corporate liability compliance. This reinforces the Group’s dedication to mitigating risks and maintaining adherence to regulatory expectations. • Commitment Towards AML/CFT/CPF and Targeted Financial Sanctions (“TFS”) Measures Kenanga Group continues to prioritise the implementation and enforcement of rigorous AML/CFT/CPF/TFS policies and procedures across all aspects of our operations. In light of the rapid digital transformation and the evolving landscape of artificial intelligence and machine learning, we recognise the increasing complexity of financial transactions, the need for robust systems to detect and prevent illicit activities and regulatory demands. Kenanga Group has invested in digitalisation from time to time to strengthen the AML/CFT/CPF/TFS compliance frameworks, ensuring they are fully aligned with regulations and regulatory standards. Prevention of Money Laundering, Terrorism Financing and Proliferation Financing (“ML/TF/PF”) We ensure that our business operations do not facilitate ML/TF/PF. Through comprehensive Know-Your-Customer (“KYC”) protocols, transaction monitoring, and risk assessment practices, we strive to identify and mitigate potential risks in a timely and effective manner. We remain vigilant in identifying and addressing any financial transactions that may involve money laundering, support terrorism or proliferation of weapons of mass destruction. Compliance with Domestic and International Sanctions We strictly adhere to all relevant domestic and international sanctions’ regimes, including those targeting individuals, entities, and countries associated with criminal or terrorist activities. Our compliance efforts are continually updated to reflect changes in sanctions lists, domestic and international regulatory frameworks. Leveraging Technology for Enhanced Monitoring We actively endeavour to integrate new technologies, digitalisation and automation for strengthening our monitoring capabilities. These technologies enable us to more effectively analyse data and detect suspicious patterns or behaviours that may indicate potential risks associated with money laundering, terrorism financing, proliferation financing or sanctions violations. Ongoing Training and Awareness We provide regular training for all employees to ensure they are informed about the latest regulatory requirements and best practices. This includes ongoing education in the detection of potential AML/CFT/CPF risks and the legal obligations related to sanctions compliance. • Ethical Conduct and Integrity in the Workplace - Employee Code of Conduct Kenanga Group reinforces ethical behaviour through the Group Code of Ethics and Conduct for Employees (“Employees Ethics Code”), equipping employees with the necessary guidance, resources, and support to uphold ethical standards. To us, a strong ethical foundation is essential for positive outcomes across our client base, stakeholders, and the wider capital markets. Trust in our workforce is fundamental, and the Employees Ethics Code embodies this by defining professional, ethical, and responsible behaviour expectations. Employees are required to maintain high standards of integrity and professionalism, ensuring impartiality in all internal and external interactions. Commitment to the Employees Ethics Code is secured through formal acknowledgment. New hires confirm their understanding upon joining, while existing employees provide annual reaffirmations. - Whistleblowing Framework Kenanga Group promotes a culture of transparency through its Group Speak Up Policy (“Speak Up Policy”), which encourages employees and stakeholders to report unethical or unlawful practices without fear of retaliation. Emphasising the Group’s commitment to safe and open communication, the Speak Up Policy serves as a key pillar of the bank’s strong governance framework. Since 2013, the introduction of an independent third-party reporting channel has further enhanced whistleblowing mechanisms, providing a secure and confidential platform that reinforces confidence in the reporting process. • Managing Conflict of Interest Kenanga Group recognises that managing conflicts is vital to maintaining transparency and upholding trust. Our Group Conflict Management Policy (“Conflicts Policy”) sets out clear guidelines for identifying and addressing conflicts of interest, categorised into personal and business-related conflicts. To further enhance conflict management, we have implemented the Guidance on Conflict of Interest offering additional resources to aid employees in identifying and addressing potential conflicts. Employees, divisions, and subsidiaries must disclose actual, potential, or perceived conflicts to ensure impartial decision-making aligned with the Group’s best interests. • Gifts, Entertainment and Hospitality Controls Kenanga Group upholds stringent ethical standards in business interactions through the Group Gifts, Entertainment, and Hospitality Policy (“GGEH Policy”). This policy establishes clear parameters on giving and receiving gifts, entertainment, and hospitality, mitigating the risk of bribery and conflicts of interest. Beyond defining threshold limits and approval requirements, the GGEH Policy strictly prohibits any exchange of gifts or hospitality intended to exert improper influence over business decisions, ensuring integrity in all dealings. • Safeguarding Confidential Information and Preventing Insider Trading Kenanga Group is committed to protecting confidential business and client information. The Group Chinese Wall Policy (“Chinese Wall Policy”) is designed to control the flow of confidential, material non-public, and price-sensitive information (“MNPI”) across divisions and departments. The Chinese Wall Policy sets out strict internal control measures to prevent insider trading and ensure compliance with legal and regulatory obligations. Employees are required to maintain the confidentiality of MNPI and refrain from disclosing such information unless permitted under the policy. • Commitment to Fair Competition Kenanga Group upholds sound and responsible business practices, with the Board and Senior Management leading the charge in promoting a fair and transparent corporate culture. The Group Competition Act Compliance Policy (“Competition Policy”) underlines our commitment to fair business dealings and explicitly prohibits anti-competitive behaviour. By establishing a clear compliance framework, the Competition Policy aims to prevent violations of competition laws and promptly address any potential infringements, reinforcing our dedication to ethical business conduct. ETHICS AND COMPLIANCE STATEMENT ETHICS AND COMPLIANCE STATEMENT
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