(Sec Update) E-BOS System Beneficial Ownership

With effect from 1 April 2024, new rules under the Companies (Amendment) Act 2024 have taken effect, requiring all companies in Malaysia to report beneficial ownership information as part of efforts to enhance transparency. The Companies Commission of Malaysia (CCM) has introduced the Electronic Beneficial Ownership System (e-BOS) and updated guidelines to help companies comply.

Definition of Beneficial Owner

The definition of "beneficial owner" has been broadened to include any natural person who ultimately owns or controls a company. Even those holding less than 20% of shares could be considered beneficial owners if they significantly influence the company's management or directors.

Companies must keep detailed records to verify beneficial ownership. These include identification documents, company documents like the constitution and meeting minutes, and any agreements that show an individual’s control over the company. Verification can be done by the company or its secretary and aligns with existing anti-money laundering protocols.

Additionally, companies are required to disclose senior management information when there is uncertainty about the identity of beneficial owners, or while beneficial ownership details are being confirmed.

E-BOS System

The e-BOS system, accessible through the SSM4U Portal, must be used by companies to notify CCM about their beneficial owners within a specified period following the implementation of the rules.

All companies, including previously exempt entities like financial institutions, must now report beneficial ownership details. However, this information is not publicly accessible but can be accessed by specific authorities and the beneficial owner.

These changes aim to prevent money laundering and terrorism financing, improving the overall integrity and accountability within corporate Malaysia.

Our Take

For Sdn Bhd & LLP type companies, ensure to submit your beneficial ownership details via the SSM4U (e-BOS) webpage from 1 April 2024, to 30 June 2024. SSM will take action against companies that fail to comply after 30 June 2024.

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