In the age of globalisation and increased complexity of corporate structures, there is an urgent requirement to identify the actual persons behind these corporate structures.
The Companies Commission of Malaysia (CCM) has issued the Guideline for the Reporting Framework for Beneficial Ownership of Legal Persons, which came into effect on 1 March 2020 (Guidelines), to implement a reporting framework on the beneficial ownership of companies.
The framework imposes an obligation on inter alia all companies incorporated in Malaysia and foreign companies registered in Malaysia under the Malaysian Companies Act 2016 (CA) to:
(a) identify and verify its ultimate beneficial owners (BO);
(b) keep the requisite information (BO Information) for completing the register of BO (BO Register) accurate and up to date;
(c) enable access to the BO Information in a timely manner; and
(d) notify the CCM of the BO Information obtained, including any changes thereto.