Implementation of Reporting Framework for Beneficial Ownership of Legal Persons

The Companies Commission of Malaysia (“CCM”) recently announced the implementation of the Beneficial Ownership Reporting Framework with effect from 1st March 2020.

With the implementation of the Framework, companies and limited liability partnerships are required to obtain, verify and keep the Beneficial Ownership (“BO”) information accurate and up-to-date and notify the Registrar after the transitional period ends on 31st December 2020.

The official Guideline for the Reporting Framework for BO of Legal Persons ("Guidelines") issued by CCM can be accessed at the following link.

The objective of these guidelines is to provide assistance to companies, limited liability partnerships and businesses to understand and comply with the requirements to obtain, keep and hold up to date Beneficial Ownership (“BO”) information and the procedures in complying with the reporting framework.

Effectively, companies and limited liability partnerships have been given a nine-month transition period (from 1 March 2020 to 31 December 2020) to obtain and update their BO information. Thereafter, such entities must notify CCM of the BO information (while continuing to maintain and keep up-to-date such information) from 1 January 2021 onwards.

The Framework applies to the following entities:-

(a) all companies incorporated in Malaysia under the Companies Act ("CA");
(b) foreign companies registered in Malaysia under the CA;
(c) limited liability partnerships registered under the Limited Liability Partnerships Act 2012.

The Framework imposes an obligation on such entities to:-

(a) identify and verify its ultimate beneficial owners;
(b) keep the requisite BO information for completing the register of beneficial owners 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.

Based on these guidelines:-

1. Newly incorporated companies will have to lodge beneficial ownership information within 30 days from the appointment of company secretary.

2. Existing companies (including foreign companies) will have to lodge Annual Return together with the BO information within 30 days from the anniversary of its registration date.

For more information, please refer to the official CCM Guidelines can be accessed at the following link.

Please feel free to contact us if you have any questions in relation to the above.