21 September 2020
In recent years, there has been a spotlight on corruption issues and money laundering where opaque or anonymous company ownership structures are used to hide links to sources of funds, giving an appearance of legitimacy. There has been more focus on “know-your-customer” (KYC) policies, in particular for financial institutions, so as to verify the identity of the ultimate person that they are doing business with.
There has been an urgent call for regulators to put in place a framework that promotes transparency on beneficial ownership, including more robust reporting and disclosure requirements. In order to enhance the beneficial ownership framework and strengthen its anti-money laundering and counter terrorism financing measures, the Company Commission of Malaysia has proposed amendments to the Companies Act 2016 in the Consultative Document on the Proposed Companies (Amendment) Bill 2020. The article sets out the proposed amendments in the consultative document in relation to the beneficial ownership framework.
For more information, please contact:
Idahani Ismas Ismail, Partner, Zaid Ibrahim & Co (a member of ZICO Law)
idahani.ismas@zicolaw.com
