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 125 124 • Annual Regulatory Seminar The 9th Annual Regulatory Seminar (“ARS”) in 2024 was once again integrated as one of the events under the 8th FAW. In line with FAW’s objective of addressing key contemporary issues, the theme of the 9th ARS was aligned accordingly. This seminar featured a structured nine-part e-learning programme covering critical topics relevant to the regulatory landscape, fraud detection, ethics and integrity, governance, cybersecurity, and regulatory expectations. Training sessions were conducted by a diverse group of subject-matter experts from Kenanga Group, along with invited speakers from various fields. These pre-recorded sessions were made available online to all employees across the country through the Group’s learning portal, ensuring accessibility and flexibility for participants. To reinforce learning and assess employees’ understanding, a short preand-post quiz was administered, measuring comprehension of the topics covered. The 9th ARS saw a total of 1,150 employees participating. Employees holding a Capital Markets Services Representative’s Licence who successfully completed the quiz with a minimum score of 80% within the specified timeframe were eligible to receive ten (10) CPE points accredited by the SIDC. • Compliance Awareness Week 2024 Kenanga Group held Compliance Awareness Week on 3 September and 4 September to strengthen employees’ understanding of regulatory compliance and reinforce the Group’s commitment to integrity and resilience. Themed “Navigating Compliance Together – Embrace, Empower & Excellence”, the event aimed to equip employees with the necessary knowledge and skills to uphold compliance as a core value. The two-day event attracted nearly 200 participants and featured distinguished speakers, including Assistant Commissioner of Police (ACP) Lee Ching Lai from the Royal Malaysia Police, who spoke on “Combatting Online Scams”, and Muhd Syazni Idris from SIDC, who shared insights on “Compliance – Everyone’s Game”. Their sessions highlighted the critical role of compliance in fostering a strong and ethical organisation. Beyond the talks, employees engaged in interactive compliance-themed activities and quizzes, making the learning experience both informative and engaging. The event reaffirmed Kenanga’s commitment to compliance, not just as a regulatory requirement but as an integral part of its corporate culture. • Enhanced AML/CFT/TFS Review Kenanga Group is continuously evaluating and enhancing the systems, processes, and technological capabilities to stay ahead of emerging ML/TF/PF risks and ensure full compliance with all applicable laws and regulations. Below are the key focus areas of our AML/CFT/CPF compliance programme in identifying, monitoring, and mitigating ML/TF/PF risks on a risk-based approach: Regular Risk Assessment A regular review of the Group’s exposure to AML/CFT/CPF risks across various business units with focus on clients’ risk assessments to enhance the transaction monitoring programme based on Kenanga Group’s risk profile. Enhanced Due Diligence (“EDD”) Strengthened EDD protocols for high-risk customers and transactions, including enhanced monitoring of highvalue or unusual transactions and reporting of suspicious activities, in line with the highest standards of compliance. Training & Awareness A focus on training programmes for directors, senior management and all employees to ensure awareness of the latest AML/CFT/CPF regulations and their roles in safeguarding Kenanga Group from illicit financial activities. Continuous Evaluation and Improvement A continuous evaluation and improvement process has been integrated into Kenanga Group’s AML/CFT/CPF compliance framework. This includes regular internal audits, as well as assessments, reviews carried out on a group-wide basis to assess the effectiveness of our AML/ CFT/CPF measures and address any gaps or weaknesses on a concerted effort. Accordingly, the above enhanced AML/CFT/CPF review programme not only strengthens our compliance capabilities but also ensures that we remain adaptable to regulatory changes, enhancing our commitment to integrity and the prevention of financial crimes. STRATEGIC VISION FOR 2025: INNOVATING GOVERNANCE AND ETHICS As we look toward 2025, the Group is committed to strengthening our governance frameworks and ethical standards in response to the fast-evolving business landscape. Technological advancements, regulatory shifts, and growing ESG expectations shape our strategy, which integrates innovation with robust compliance practices to ensure long-term resilience. Our focus remains on building a culture of transparency, accountability, and responsibility, while proactively addressing emerging risks. The Group is dedicated to leading with strong governance and ethics, reinforcing our role as a trusted institution in an increasingly complex business. • Transforming Governance Practices for a Changing Regulatory Environment In response to shifting regulations and ESG expectations, Kenanga Group is focused on evolving its governance practices to ensure long-term sustainability. Our approach is rooted in the integration of governance with the broader sustainability objectives into our business operations. • Leveraging Technology to Strengthen Compliance Risk Management As technological advancements reshape the business landscape, the Group embraces digital tools to enhance our compliance and risk management systems. We prioritise adopting innovative technologies that align with regulatory standards and ensure that we remain agile and responsive to emerging challenges. • Combating Financial Crimes with Advanced Compliance Frameworks The increasing sophistication of financial crimes calls for a robust and adaptive compliance framework. Kenanga Group is committed to strengthening its AML/CFT measures, integrating them with ESG considerations to address both traditional and emerging financial risks. • Building a Resilient Culture of Ethics and Integrity A culture of ethics and integrity is foundational to the Group’s mission. We are committed to instilling a strong sense of responsibility at all levels of the organisation, ensuring that ethical principles guide decision-making and actions across the company. • Championing Transparency and Ethical Communication Across All Levels We emphasise the importance of open communication in fostering a culture of transparency. Our Speak Up channels and open-door policies empower employees to report concerns, ensuring accountability and reinforcing our commitment to ethical business conduct. • Enhancing Compliance Oversight with Continuous Monitoring and Assessment Kenanga Group is dedicated to ensuring the highest standards of compliance. Through continuous monitoring and risk-based assessments, we proactively address compliance gaps and ensure that our business operations remain aligned with the latest regulatory requirements. • Safeguarding Data Privacy and Security in the Age of Digital Transformation As we continue our digital transformation journey, Kenanga Group places great emphasis on safeguarding personal and corporate data. By adhering to stringent data protection regulations, we ensure that our technological advancements are secure, responsible, and compliant with the expected standards. • Driving Compliance Excellence through Continuous Education and Training Our commitment to governance excellence is reinforced through ongoing employee education and training. Kenanga Group ensures that employees are well-equipped to navigate complex regulatory changes, strengthening our ethical practices and fostering a compliance culture throughout the organisation. FORWARD LOOKING STATEMENT We remain committed to ethical governance and operational excellence, ready to meet the challenges of a rapidly evolving regulatory and technological landscape. Our focus on integrating innovation with governance empowers us to proactively manage emerging risks while ensuring we maintain the highest standards of integrity. Guided by our core principles, Kenanga Group continues to foster a culture of transparency, accountability, and responsibility throughout the organisation. With strong support from our Board and Senior Management, we enable our employees to uphold these values. As we further strengthen our ESG initiatives and compliance frameworks, we aim to not only meet regulatory requirements but also create lasting value for our stakeholders, aligning business growth with positive societal impact. Through innovation and ethical leadership, Kenanga Group is committed to building a resilient foundation that drives sustainable growth, cultivates stakeholder trust, and shapes the future of responsible business. ETHICS AND COMPLIANCE STATEMENT ETHICS AND COMPLIANCE STATEMENT
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