Human Resource Development

Case Study BAFIA 1989 IMPLEMENTATION

By;KOK SAU YEE - 813315

NOR LIYANA BT MOHD KHALIL – 814093PRIDHIVRAJ NAIDU – 814284

INTRODUCTION• Fraud in the banking industry holds one

of the highest risks among all business sectors, these fraud are transacted by individuals who have perfected their act of strategic swindling within the financial industry (San-Jose, Retolaza, & Gutierrez-Goiria, 2011).

• Generally criminal act are contrary to the stipulated code of conduct expected of a banker, customer, or member of the public in general (Nwaze, 2006).

• This is a type of behavior that constitutes an offense of a public nature or against society (Albrecht, Albrecht, & Albrecht, 2006).

Case 1 (NFC vs. Public Bank Bhd, 2012)

• The National Feedlot Corporation (NFCorp)

• suing Public Bank Berhad • loss of reputation as a result of an

alleged breach of its security• private banking information of NFC

“In a statement issued, NFCorp alleged

that Public Bank Berhad had breached the

Banking and Financial Institutions Act 1989”

(The Malaysian Insider, 2012).

Case 2 (Bank Islam Bhd vs. Azrul, 2013)

• Bank Islam Malaysia has filed two police reports

• Azrul Azwar Ahmad Tajudin, accusing its suspended chief economist of possessing and

• leaking confidential documents to a third party.

“The suspension is due to Azrul’s violation of the

Bank’s internal policies, the details of which

have been conveyed to Azrul in the show cause

letter, handed to him on 17 January 2013,”(The Malaysian Insider, 2013)

• Fraudulent practice has the potential to bring about the collapse of a bank.

• It falls on the shoulders of the government to ensure the confidence of the public is high and to reduce the risks of financial crime based on information.

• Governments at all levels, as well as legislators, are expected to pay close attention to banks’ financial information and its practices (Adeyemi & Fagbemi, 2010; Ogbuji, Onuoha, & Izogo, 2012).

• Looking at this important issue Banking and Financial Institutions Act 1989 (BAFIA) came in to effect starting from 1st October 1989

• All commercial banks and other licensed financial institutions in Malaysia are regulated under the BAFIA.

• Bank Negara Malaysia administers the statute and as such, has the authority to impose penalties on banks and other financial institutions and its officers for violations.

• Arising from the implementation of the BAFIA (1989) there has been many changes within the banking industry itself

• As mentioned by Tan Sri Dato' Seri Ali Abul Hassan bin Sulaiman, past Governor of BNM,

“Issued a stern warning to employees of

banking institutions to adhere to the secrecy

provision under section 97(1) of the Banking

and Financial Institutions Act 1989 (BAFIA).”

(BNM Press Statement, 2000)

Training In Public Bank

- Choice of Training

- Based on 1. Time availability2. Cost constraints 3. Need for training

- Based on positions in Organization:1. Managerial Level and above2. Senior Executive level3. Junior Executive level

Questions on the Case

1. Discuss the factors to access the need for training

2. What are the necessary Factors considered inemployee selection for the training?

3. Explain the limitations in implementing the training

design

4. What other training methods that can be used to train employees at different levels?

Thank YOU

From;KOK SAU YEE - 813315

NOR LIYANA BT MOHD KHALIL – 814093PRIDHIVRAJ NAIDU – 814284