Corporate crimes in Malaysia:
a prole analysis
Normah Omar, Roshima Said and Zulaikha ‘Amirah Johari
Accounting Research Institute, Universiti Teknologi MARA,
Shah Alam, Malaysia
Purpose – Corporate crimes in Malaysia are increasing each year. These issues are bothersome to the
investors, creditors and the public as a whole because of the huge impact on all of them. Employees lose
their jobs, investors do not get optimal return on their investments and creditors are unable to get their
payments, and as a result, the public lose their faith on the legislation. The purpose of this study is to
analyze the cases charged under Securities Commission and Bank Negara Malaysia.
Design/methodology/approach – This study analyzes the cases in Securities Commission and
Bank Negara under four criteria which are the corporate proles, details on crime committed,
perpetrators prole and, nally, the offence.
Findings – The ndings show that top-level management, especially the directors, usually commit
such crime and many of them are male.
Originality/value – This study looks into the criteria of the cases charged under both institutions,
Securities Commission and Bank Negara, which can be used to create awareness among the
organizations in Malaysia.
Keywords Corporate crime, Bank Negara Malaysia, Securities commission
Paper type Research paper
Corporate crime is an ongoing reality and no organization is immune to the destructions
of the fraudster. Its insidious nature seeps into and erodes the core elements on which all
business is built upon: condence and trust. Baucus and Dworkin (1991) dene
corporate crimes as rm’s act that violates the criminal law. Corporate crime, also
known as white-collar crime, is dened as the crime committed by, respectable or at least
respected, business and professional men who belong to the upper class (Sutherland,
1940). In other words, they are the “trust violators”. In layman terms, corporate crime
refers to crimes committed either by a corporation (i.e. a business entity having a
separate legal personality from the natural persons that manage its activities) or by
individuals acting on behalf of a corporation or other business entity.
During the past decade, issues of corporate crime seem to be one of the hottest topics
raised by regulators and enforcement agencies globally. These issues are bothersome to
the investors, creditors and the public as a whole because of the huge impact on all of
them. Employees lose their jobs, investors do not get optimal return on their investments
and creditors are unable to get their payments, and as a result, the public lose their faith
on the legislation. Enron, WorldCom and Bernad Madoff (ponzi scheme) are some of the
The research was supported by the ARI HICOE research grant of the Ministry of Higher
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Journalof Financial Crime
Vol.23 No. 2, 2016
©Emerald Group Publishing Limited