The punishment for white-collar crime in Malaysia is too light to pose a real deterrent against high-level fraud, said a senior accountant.

Aaron Lay, from AITLAU Management Services Sdn Bhd, pointed out that white collar criminals hardly have to face any jail time despite cheating their way to millions of ringgit.

white collar crime investment crime 141005 Citing three examples of white-collar criminals found guilty of fraud, he said the common thread between all three cases was that they only had to face one day in jail for their crimes.

And despite the relatively high fines slapped on the criminals - which ranged from RM400,000 to RM2 million - they were far lower than the fraudulent figures which landed them in trouble in the first place.

“Compared to Singapore and Hong Kong, the punishment here is too light. It does not stop white-collar crime,” he said to some 200 people attending a one-day anti-fraud symposium at the Securities Commission of Malaysia conference hall in Kuala Lumpur.

“Also, the burden of proof that falls on the prosecutor must be beyond reasonable doubt. So in conclusion, if you want to commit fraud, go big because you only face one day in jail,” he said to the amusement of the audience.

Lay, who was focusing on the topic of financial statement fraud, pointed out that there are quite a few methods white-collar criminals use to cheat for their benefit, and in the case of financial statement fraud, for the company’s benefit.

He noted, however, that investigators and the public can look out for several “red flags” in financial statements that could indicate possible fraud by a company.

Among the things to look out for are false income, timing difference, inaccurate evaluation, hidden liability and expenditure, and inaccurate disclosure.