KUALA LUMPUR, March 25 — Arising from the Securities Commission Malaysia’s (SC) active surveillance, supervision, and complaints received, 76 breaches of securities law were reviewed in 2023.

"41 per cent of these offences relate to the SC’s enforcement priorities, namely disclosure breaches, securities fraud and unlicensed activities,” the SC said in its Annual Report 2023 released today.

The SC said its investigation efforts remain focused on cases related to offences involving unlicensed activities, securities fraud and disclosure breaches, which constituted more than 50 per cent of the investigations commenced in 2023.

It said that as of Dec 31, 2023, corporate misconduct comprised 27 per cent of the 55 active investigations cases, followed by securities fraud (15 per cent), insider trading (16 per cent), manipulation (11 per cent), unlicensed activities (nine per cent), disclosure breaches (nine per cent), money laundering (seven per cent), obstruction of investigation (four per cent), and others (two per cent).

"In 2023, more than 1,600 notices were issued to compel individuals and entities to either appear before an SC’s Investigating Officer for examination or to produce specific documents and information to an SC’s investigating officer for the purpose of fact-finding and evidence gathering,” it said.

The SC said steps were taken under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA) to freeze and seize cash and shares amounting to RM100 million in 2023, which are suspected to be proceeds of unlawful activities.

"The in-house Digital Forensics (DF) unit had preserved evidence from 351 digital sources, including from physical sources (computers, mobile phones and tablets) as well as online sources (email accounts and cloud storage),” it said.

Meanwhile, regarding the efforts to restitute investors, the SC said it remained committed to protecting them.

"Following the outcome of the SC’s successful civil suits and regulatory settlements entered, the SC has restituted 119 investors in 2023 in the amount of RM301,208.

"Additionally, a further RM4,586,915.35 has been earmarked for restitution involving 658 investors,” it said.

Apart from initiating criminal or civil actions, the SC also leveraged its statutory powers for administrative actions, which provides a full spectrum of sanctions and remedies against the persons in breach.

It pointed out that in 2023, a total penalty of RM19.53 million was against 40 persons for their misconduct and breaches under the securities laws and guidelines issued by the SC.

In carrying out its surveillance, gatekeeping and supervisory functions, the SC said its non-statutory enforcement tools were used to address breaches of securities laws or guidelines that did not warrant the initiation of formal enforcement actions.

"In 2023, 124 Infringement Notices have been issued by the SC compared with 76 in 2022,” it added. — Bernama