What is a Beneficial Ownership Reporting Framework?
1. Beneficial ownership reporting framework is a framework that imposes obligation on companies to obtain, verify and record information of their beneficial owners. 2. The beneficial ownership information must be kept up to date by companies and lodged with the Registrar (SSM) as required.
Entities Who Subjected to the Beneficial Owner Reporting Framework
– All companies incorporated or registered under the Companies Act 2016/1965.– and limited liability partnerships registered under the LLPA 2012.
Why SSM introduce the Beneficial Ownership Reporting Framework?1. To be in line with international standards i.e. the Financial Action Task Force (FATF) and the Organisation for Economic Co-Operation and Development (OECD).2. to combat money laundering, terrorist financing and shall include other illegal activities such as corruption and tax evasion.
Who is a Beneficial Owner of a Company under the new framework?
1. An individual who ultimately owns or controls a company through ownership of shares in the company (over 20%) and shall include a person who exercises ultimate effective control over the company.
Reference: SSM Guideline on BO Reporting Framework/FAQ https://www.ssm.com.my/Pages/ebos.aspx