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The Malaysian Bar today launched its risk awareness initiatives — Client Account Campaign and MyBar Risk Management Podcast — at its launch ceremony at Wisma Badan Peguam Malaysia.
In recent years, we have seen an increase of cases involving lawyers and stakeholder money leading to criminal breach of trust (“CBT”). While the main reason that lawyers commit such acts remains unclear, the information from the Malaysian Bar’s mandatory Professional Indemnity Insurance (“PII”) Scheme provides some insights. As at 27 Nov 2024, the Malaysian Bar recorded a total of 1,063 notifications from the past five years (2020–2024). From this figure, 15% of the notifications involve allegations of breach of stakeholders’ duties and/or misappropriation, both involving client accounts.
The number of PII Scheme notifications involving client accounts is not necessarily a reflection of bad intentions, but more often a reminder of how easily red flags can be overlooked amidst the pressures of daily legal practice. The legal profession is a noble one, grounded in integrity and service, and lawyers embark on their careers with a genuine commitment to doing the right thing. Unfortunately, though the heart be pure and the aim be true, the fact remains that financial irregularities may go unnoticed if internal controls are not properly maintained.
In some cases, the issues may not even stem from the lawyer’s own actions, but rather that of a colleague. For example, problems can arise when entering into a partnership or taking over a sole proprietorship without realising that the client accounts were already in disarray, or when a colleague’s dishonesty becomes apparent only later. Situations like these are unfortunate, and we empathise with lawyers who find themselves caught off guard.
This is why the Malaysian Bar continues to promote a proactive approach to risk awareness. Regularly reviewing account transactions, ensuring reconciliations are up to date, and insisting on full financial transparency are essential steps in safeguarding a lawyer’s practice. Supervision should not be entirely delegated, even when trusted staff or accountants are involved. Establishing clear audit trails and being alert to inconsistencies are crucial, especially when taking over or joining a firm. These measures help protect not only a lawyer’s professional standing, but also the public’s trust in the legal profession.
In response to the situation of CBTs involving client accounts, the Malaysian Bar has launched the above-mentioned awareness initiatives as an ongoing effort for lawyers to be consciously aware of the gravity of risks that could affect their livelihood. In the long run, the Malaysian Bar is confident that these awareness initiatives will be able to instil the commendable practice of proper management of client accounts and improve risk management practices in law firms.
Targeting lawyers from different demographics and practice backgrounds, the Malaysian Bar Awareness Initiatives are a thoughtful effort with an array of activities to raise awareness and subsequently, elevate the Malaysian Bar to greater heights.
The Client Account Campaign aims to raise awareness about the correct handling of clients’ monies, the importance of adhering to the Solicitors’ Account Rules 1990 and the Rules and Rulings of the Bar Council, and the consequences of negligence or oversight. As part of the campaign, the Malaysian Bar will roll out a series of targeted activities, including reinforcing a better understanding of managing client accounts through speaking events, informative videos, firm-wide pledges, updated guidance materials, and visual reminders such as posters and alerts. A whistleblower policy and a compiled list of certified auditors are also in the works to support accountability efforts. By equipping lawyers, pupils in chambers, and even law students with the knowledge and tools to responsibly manage client accounts, this campaign reinforces the Malaysian Bar’s commitment to ethical legal practice and enhances the overall standard of risk management within the profession.
Meanwhile, to address key risk issues within the legal practice, the Malaysian Bar has also taken the initiative to launch a dedicated risk management podcast — MyBar Risk Management Podcast — a digital series designed to engage legal practitioners through accessible, insightful content. The podcast will discuss matters ranging from firm management to legal liability, and is targeted at lawyers, pupils in chambers, law students, as well as the general public with an interest in legal practice and professional standards.
Episodes will be published monthly and last 20 to 40 minutes per episode. These will be available on platforms such as YouTube, Spotify, and Apple Podcasts, and shared via the Malaysian Bar website and Praktis, the dedicated risk management website. This initiative represents a progressive step toward cultivating a more informed, proactive, and risk-conscious legal community.
Mohamad Ezri b Abdul Wahab
President
Malaysian Bar
21 June 2025