In a major move to enhance corporate transparency and align with global anti-money laundering standards, the Companies Commission of Malaysia (SSM) has announced the upcoming launch of a mandatory digital Beneficial Ownership (BO) reporting system. The new electronic platform, expected to be rolled out in phases starting Q4 2025, will require all registered companies to submit and maintain up-to-date information on their ultimate beneficial owners.

This initiative represents a significant shift from previous paper-based submissions and places a greater responsibility on directors to ensure accuracy and timeliness. For all business owners, understanding these new digital requirements is essential for staying compliant.

What is Beneficial Ownership (BO) Reporting?

Beneficial Ownership reporting is the process of identifying and declaring the real individuals who ultimately own or control a company. This goes beyond just listing the shareholders on paper; it requires identifying the natural persons who hold the ultimate power, whether through shareholdings, voting rights, or other forms of influence.

The goal is to prevent the misuse of corporate structures for illicit activities by making the true ownership of companies transparent to the authorities.

Key Features of the New Digital System

While full technical details are forthcoming, the announcement outlines several key features:

• Centralized Digital Platform: All BO information must be submitted electronically through a new, dedicated SSM portal, phasing out previous submission methods.
• Requirement for Timely Updates: Companies will be obligated to update their BO information within a specified timeframe whenever there is a change in ownership or control.
• Increased Verification: The system will likely be integrated with other government databases to enhance the verification and accuracy of the submitted data.
• Stricter Enforcement: The move to a digital system will be accompanied by stricter enforcement and higher penalties for non-compliance or providing false information.

What This Means for Your Company (Action Plan)

Company directors are legally responsible for ensuring this information is accurate and up-to-date. Here’s what you should do to prepare:

1. Identify Your Ultimate Beneficial Owners (UBOs): If you haven’t already, undertake an exercise to map out your company’s ownership structure to identify every individual who qualifies as a UBO under the Companies Act 2016.
2. Review and Update Your Records: Ensure your company’s internal Register of Members and Register of Beneficial Owners are accurate and reflect the current situation.
3. Appoint a Responsible Person: Designate a director or company secretary to be responsible for monitoring and submitting updates to the new SSM portal once it launches.

The Importance of Good Governance and Record-Keeping

Accurate Beneficial Ownership reporting is built on a foundation of meticulous corporate and financial records. While your Company Secretary is responsible for the final submission to SSM, the accuracy of that submission relies on the quality of your internal documentation.

At SMONE, our professional Accounting & Bookkeeping services ensure your financial records are always clean, organized, and transparent. This provides a solid foundation of data that makes it easier for your Company Secretary to fulfill these critical statutory obligations with confidence. A company with well-managed accounts is a company prepared for modern compliance demands.

Contact us today to ensure your business’s financial administration is robust and ready for this new era of corporate transparency.

(Disclaimer)
This article is for general informational purposes and is based on recent public announcements. The specific features and timelines of the new BO reporting system are subject to final confirmation by SSM. This does not constitute legal advice.