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Q：
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Why are there new beneficial ownership reporting requirements?
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A：
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Following the amendments to the Companies Act 2016 to introduce a more comprehensive beneficial ownership reporting framework, the Companies Commission of Malaysia has issued a new guidelines and case studies to assist companies to comply with the new beneficial ownership reporting requirements.
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Q：
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What are the amendments to the new beneficial ownership reporting framework?
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A：
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The beneficial ownership reporting framework are revised to cover the following areas:
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To widen the definition of beneficial owner to include any person that can exercise ultimate control over an entity.
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No more exempted entity.
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Maintenance of register of beneficial owners at the registered office.
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Reporting obligations of companies and beneficial owners.
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Q：
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What are the company’s obligations under the new beneficial reporting framework?
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A：
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The company is required to identify the beneficial owners (BO) by sending notices to members and potential BOs, record beneficial ownership information in the register of BOs, maintain the register of BOs at the company’s registered office, submit beneficial ownership information or any updates to the Companies Commission of Malaysia (CCM) within specified timeframes. The company must also provide access to the register of BOs for competent authorities, law enforcement agencies, BOs and authorised persons.
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Q：
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Can an individual become a BO if he or she holds less than 20% of the shares or voting rights?
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A：
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Yes, it is possible that a person holding less than 20% of the shares or voting rights be a BO of a company if he or she can exercise significant control or influence over the company by meeting Criteria C, D, E, or F of the BOs.
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Q：
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What is the time frame given to a company for the filing of beneficial ownership report?
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A：
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A newly incorporated company has 60 days from the appointment of a company secretary to comply with the beneficial ownership reporting framework, which includes a 14-day filing period. Subsequently, a company must notify the CCM of any changes to the BO information within 14 days after the changes was recorded in the register of BO and lodge with the CCM an annual return containing BO information within 30 days from the anniversary of its incorporation date.
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FAQ
