AFAM Anti-Corruption Policy

AIRFREIGHT FORWARDERS ASSOCIATION OF MALAYSIA (2019)

Anti-Corruption and Anti-Bribery Policy for the Logistics Industry

1. Introduction
This Anti-Corruption and Anti-Bribery Policy (“Policy”) sets out AFAM’s industry- wide principles in addressing improper solicitation, bribery, and other corrupt practices in logistics and freight forwarding. It serves as a guideline for AFAM members, their staff, and business associates, ensuring all dealings are conducted ethically and transparently.

2. Commitment
AFAM and its members are committed to:
i. A zero-tolerance approach to bribery and corruption.
ii. Upholding transparency and accountability in all dealings.
iii. Ensuring compliance even where such refusal may cause delays or lost opportunities.

3. Objective
This Policy establishes a standard for ethical conduct in Malaysia’s logistics and freight forwarding industry, ensuring compliance with laws and promoting best practices.

4. Scope
This Policy applies to:
i. AFAM members and their staff.
ii. Contractors, subcontractors, agents, and consultants.
iii. Third-party service providers engaged in freight forwarding, customs clearance, warehousing, and transportation.

5. References
i. Malaysian Anti-Corruption Commission Act 2009 (MACCA).
ii. Penal Code (Revised 1977).
iii. Companies Act 2016.
iv. Whistleblowing Policy (to be developed in conjunction with this Policy).

6. Definitions
i. Bribery & Corruption: Any gratification offered or received to influence decision-making, as defined under MACCA.
ii. Facilitation Payment: Unofficial payments to expedite routine processes.
iii. Conflict of Interest: When personal interest affects or appears to affect professional judgment.
iv. Business Associate: Any third party engaged with AFAM members (suppliers, agents, partners).

7. Policy Owner
The AFAM Secretariat, under the direction of the AFAM Council, is the custodian of this Policy.

8. Bribery and Corruption
Offering, soliciting, or receiving any form of bribe, kickback, or inducement is strictly prohibited. This applies to both private and public sector dealings, including interactions with customs, port, and airport authorities.

9. Recognition of Local Legislation
Compliance with MACCA 2009, Penal Code, Companies Act, and other applicable laws is mandatory.

10. Gifts, Entertainment, Hospitality and Travel
i. No-Gift Policy: Members and staff shall not give or receive gifts, except for nominal items (e.g. diaries, calendars).
ii. Entertainment and hospitality must be reasonable, transparent, and not aimed at influencing business decisions.
iii. Travel expenses must be legitimate, business-related, and proportionate.

11. Donations and Sponsorships
i. Permissible only for community, educational, or environmental purposes.
ii. Prohibited if linked to securing business advantage.
iii. AFAM and its members shall not make political contributions.

12. Facilitation Payments
Strictly prohibited, regardless of value. Any requests for facilitation payments must be reported.

13. Business Rewards, Rebates, Commissions, or Other Incentives
Allowed only if transparent, market-based, documented, and not intended to influence unfair advantage.

14. Recruitment, Promotion and Support of Staff
i. Employment decisions must be merit-based.
ii. Background checks must be conducted for roles with bribery/corruption exposure.

15. Business Associates
i. Due diligence must be carried out on all business associates.
ii. Contracts must include anti-corruption compliance clauses.

16. Responsibilities of Members and Staff
i. Familiarise and comply with this Policy.
ii. Promptly record all financial transactions accurately.
iii. Refuse and report any corrupt practices.

17. Conflicts of Interest
i. Must be declared and managed transparently.
ii. Staff must not misuse their position for personal gain.

18. Declarations
All members and staff shall annually declare compliance with this Policy and disclose any potential conflicts of interest.

19. Compliance and Oversight Function
AFAM will establish a compliance committee to oversee the implementation, monitoring, and review of this Policy.

20. Training and Awareness
Regular training sessions will be organised jointly with authorities such as MACC, RMCD, and MITI to raise awareness within the industry.

21. Reporting of Policy Violations
i. Whistleblowing channels shall be provided for confidential reporting.
ii. Whistleblowers shall be protected from retaliation.

22. Rights to Audit Business Associates
AFAM members reserve the right to audit third parties for compliance with this Policy.

23. Sanctions for Non-Compliance
i. Staff: Disciplinary action, including termination.
ii. Business associates: Contract termination and reporting to authorities.

24. Continuous Improvement
AFAM shall review and update this Policy periodically, considering changes in law and industry best practices.

Appendix – Annual Declaration Form

Anti-Corruption and Anti-Bribery Compliance Declaration
I, ____ _____________(Name),of ______________________ (Company), hereby declare that:
1. I have read and understood AFAM’s Anti-Corruption and Anti-Bribery Policy.
2. I agree to comply with all applicable laws, including the Malaysian Anti-Corruption Commission Act 2009.
3. I will not engage in, condone, or ignore any form of bribery or corruption.
4. I will disclose any conflict of interest that arises in the course of my duties.
5. I acknowledge that non-compliance may result in disciplinary action, termination of membership, or referral to authorities.

Signature:

IC/Passport No.:

Designation:

Date: