Beneficial Ownership Guide

A beneficial owner is an individual who ultimately owns or controls a company, either directly or indirectly.

This means a person who ultimately owns or enjoys the benefits of the shares or interests in the company, or ultimately controls the company through ownership, voting rights, agreements or other means.

The design notes that beneficial ownership transparency helps prevent money laundering, terrorism financing and other financial crimes.

The approved design lists:

• Private companies limited by shares (Sdn. Bhd.)
• Public companies
• Companies limited by guarantee
• Foreign companies registered in Malaysia
• Other entities as required under the law

Companies are required to identify and maintain beneficial ownership information, including:

• Beneficial owner's full name
• Identification number / passport number
• Nationality and residential address
• Nature and extent of ownership or control
• Date of becoming a beneficial owner
• Date of ceasing to be a beneficial owner
• Supporting information for verification

The design says beneficial ownership information should be updated in e-BOS when there is a:

• Change in beneficial ownership
• Change in the nature or extent of ownership/control
• Change in relevant senior management
• Cessation of a beneficial owner

Failure to comply with beneficial ownership requirements can result in penalties, including:

• Compound penalties
• Fines
• Other enforcement actions under the law