KUALA LUMPUR (Aug 27): Malaysia is committed to complying with international standards set by the Financial Action Task Force (FATF), emphasising the importance of beneficial ownership transparency as a key foundation in the fight against money laundering and terrorism financing.
Minister of Domestic Trade and Cost of Living Datuk Armizan Mohd Ali said that recent amendments to the Companies Act 2016, through the Companies (Amendment) Act 2024, which took effect on April 1, mark a significant step in strengthening corporate governance in the country.
He said the legal framework introduces various changes to enhance transparency and accountability in company management and improve corporate regulatory mechanisms.
“These amendments reflect the commitment of the Ministry of Domestic Trade and Cost of Living (KPDN) and the Companies Commission of Malaysia (SSM) to lead more comprehensive strategies and approaches in supporting the reform agenda.
“This includes strengthening the government’s governance framework and overall state administration, as well as ensuring better transparency in the business ecosystem and corporate sector,” he said in a statement on Tuesday.
Armizan said the legal framework also emphasises stricter oversight and clearer reporting on beneficial ownership, aimed at reducing the risk of misconduct, and increasing investor confidence and other stakeholders’ trust in the integrity of Malaysia’s business system.
He underscored that this approach aligns with the national goal of becoming a highly competitive and integrity-driven business hub on the global stage, in line with the Malaysia Madani concept championed by Prime Minister Datuk Seri Anwar Ibrahim.
As part of this initiative, Armizan said the e-BOS (Electronic Beneficial Ownership System) has been launched to facilitate the submission and management of beneficial ownership information.
“This system aims to enhance transparency and reduce the risk of misconduct by providing an efficient platform for companies to submit critical information about their actual owners.
“The e-BOS system not only simplifies reporting but also ensures that the information collected is accurate and up-to-date,” he said.
Armizan added that as of July 31, 2024, a total of 374,774 out of 677,351 active companies (55.3%) listed in SSM’s register have complied with the requirement to submit beneficial ownership information.
He noted that this compliance rate is a positive step towards achieving greater transparency in the corporate sector, reflecting the business community’s commitment to meeting the established transparency standards and supporting reform efforts under the Malaysia Madani concept.
Earlier, he had launched the SSM National Conference (SSMNC2024), held virtually with a record participation of over 3,000 delegates, including representatives from the Corporate Registers Forum members from Singapore, Hong Kong, Tunisia, the Republic of Kiribati, and South Africa.
The main goal of the conference is to raise awareness and knowledge about corporate best practices, while discussing with the featured experts, the latest developments in legislation which are affecting businesses in Malaysia.
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