Page 58 - SC SCAR 2023 ENGLISH Flipbook

PART 2 REGULATORY PERFORMANCE AND OUTCOMES
TABLE 23
Requests for investigative assistance to IOSCO members
Ongoing Criminal and Civil Cases at Various Courts
In addition to the SC’s ongoing criminal enforcement efforts which are undertaken with the Public Prosecutor’s consent, the SC initiated 15 civil actions (including the issuance of letters of demand) for the year 2023. Additionally, the total disgorgement and civil penalties obtained by the SC in 2023 amount to RM18.6 million, and will be utilised in accordance to law which includes to compensate aggrieved investors. The amount disgorged by the SC in 2023 via its civil enforcement actions represent an increase of three times more than year 2022 at RM13.38 million (Table 21).
For year 2023, there were 32 ongoing cases in court at first instance or appeal stages, involving 53 individuals as listed in Table 24.
The nature of these cases includes corporate misconduct, insider trading, securities fraud, market manipulation, unlicensed activities as well as money laundering offences.
TABLE 24
Ongoing criminal and civil cases
Jurisdictions
No. of requests
Hong Kong
9
Singapore
6
Australia
3
United Kingdom
3
British Virgin Island
2
United States
2
Canada
1
Denmark
1
Ireland
1
Japan
1
Pakistan
1
TOTAL
30
For cases that involve cross-border investigation, the SC mainly leverages the IOSCO Multilateral Memorandum of Understanding (IOSCO MMOU) for purpose of gathering information and/or evidence in the respective jurisdictions. In 2023, the SC made 30 requests for investigative assistance to 11 foreign supervisory authorities (Table 23). Most of these requests were made to seek assistance in procuring documentary evidence such as banking documents and documents related to securities transactions, as well as to record statements from witnesses located abroad. Such documents and statements are pivotal to the SC’s investigation to help identify the beneficial owners and controllers of the banking and securities transactions. This is particularly important in cases involving insider trading and market manipulation offences.
Conversely, the SC also renders investigative assistance to IOSCO members. In 2023, the SC assisted three foreign supervisory authorities, in gathering necessary information and/or documents for purpose of their ongoing investigation.
Efforts to Restitute Investors
The SC remains committed in protecting investors. 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.
Types of actions
Court
No. of cases
No. of individuals
Criminal Action
Sessions Court
8
13
High Court
7
10
Court of Appeal
6
9
Civil Action
High Court
9
19
Court of Appeal
1
1
Federal Court
1
1
TOTAL
32
53
56
SECURITIES COMMISSION MALAYSIA ANNUAL REPORT 2023