LETTER | The Companies Commission of Malaysia (CCM) refers to the statement by Transparency International Malaysia (TI-M) and its public commentary on social media concerning the limited access of beneficial ownership (BO) information to the public.
CCM has introduced a comprehensive beneficial ownership reporting framework under the Companies Act 2016 through the Companies (Amendment) Act 2024, which came into effect on April 1, 2024, and the Limited Liability Partnerships Act 2012 through the Limited Liability Partnerships (Amendment) Act 2024, effective Jan 31, 2025.
CCM wishes to clarify that the implementation of the BO framework is guided by Malaysia’s commitment to uphold the highest standards of corporate transparency while ensuring compliance with the recommendations of the Financial Action Task Force (FATF) and findings from the National Risk AsseCCMents.
The regulatory framework has been designed to balance the need for transparency while ensuring personal data, national interest, and security are fully protected.
Both bills proposing amendments to the Acts underwent extensive public consultation processes and were presented to the MPs.
The issue of access to BO information was thoroughly debated in Dewan Rakyat and Dewan Negara before both amendments were passed.
Under one of the four main policy statements of the Companies (Amendment) Bill 2023 consultation, the scope of strengthening the beneficial ownership reporting framework was proposed.
Among others, Subsections 613(1)(aa) dan (ba) of the Companies Act 2016 were introduced to confer powers on the minister to make regulations concerning any matters relating to the access to beneficial ownership information as well as the scheme of compromise or arrangement, corporate voluntary arrangements, judicial management, liquidation, and receivership.
This led to the introduction of the Companies (Access to Register and Information Relating to Beneficial Ownership) Regulations 2025, which took effect Jan 10, 2025.
Similar provisions were also introduced under the Limited Liability (Amendment) Bill 2024, where BO information disclosure was made mandatory via the Limited Liability (Amendment) Act 2024.
To further support the stakeholder engagement, CCM issued a “Consultative Document on the Proposed Guideline for the Reporting Framework for Beneficial Ownership of Companies (Revised)” on Dec 22, 2023.
The consultation period was open to the public until Jan 31, 2024.
Subsequently, CCM has also issued a “Guidelines for the Reporting Framework for Beneficial Ownership of Limited Liability Partnerships (Revised)” on Aug 9, 2024, where the consultation was also opened to the public until Sept 9, 2024.
Both documents received feedback from the industry players, legal professionals, enforcement authorities and the public.
These initiatives reflect CCM’s ongoing commitment to transparency and inclusivity in the development of a robust and effective legal framework for BO disclosure, particularly in matters related to data access by relevant parties.
Effective April 1, 2024, CCM mandated the submission of BO information in line with the enforcement of the Companies (Amendment) Act 2024.
As of April 30, 2025, a total of 636,342 companies, representing 92.57 percent of the 687,412 companies with existing status, have submitted their BO information.
With the issuance of the Companies (Access to Register and Information Relating to Beneficial Ownership) Regulations 2025, which came into effect on Jan 10, 2025, CCM will also issue similar regulations for limited liability partnerships at a later date to be announced.
Under these regulations, access to BO data is restricted and granted only to specific categories of persons for legitimate purposes, particularly in the context of anti-money laundering, counter-terrorism financing, and promoting good governance.
Access to BO information is limited to the following categories of persons, each identified based on their regulatory, enforcement or compliance-related roles and responsibilities:
The beneficial owner;
Individuals authorised by the beneficial owner;
Enforcement agencies and competent authorities under Section 3(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613), such as Bank Negara Malaysia, police, and MACC;
Reporting institutions carrying out anti-money laundering and counter terrorism financing activities as listed under the First Schedule of Act 613; and
The Finance Ministry, specifically for functions related to government procurement.
Authorised agencies, enforcement bodies and regulated institutions may access BO information for purposes aligned with their statutory functions.
These include carrying out investigation activities, ensuring compliance with anti-money laundering and counter terrorism financing requirements and conducting know-your-customer or customer due diligence procedures.
This framework supports the integrity of the corporate ecosystem by promoting transparency, facilitating informed decision-making and strengthening confidence in the use of legal entities for legitimate economic activities in Malaysia.
This approach reflects practices across Asean, where access to BO information is similarly restricted to competent authorities and selected institutions.
In countries such as Singapore, Thailand, Indonesia, the Philippines, and Vietnam, BO data is collected by regulatory bodies such as the Accounting and Corporate Regulatory Authority in Singapore, the Department of Business Development in Thailand, the Securities and Exchange Commission in the Philippines, and other designated authorities.
However, this information is not made available to the public.
The same applies to Brunei, Cambodia, Lao PDR, and Myanmar, where access to BO information remains limited to enforcement agencies and regulatory authorities.
This regional consensus underscores a common emphasis on protecting personal data and preserving national security while enabling access for legitimate regulatory and compliance purposes.
It is also important to highlight that there are growing concerns about public access to BO information globally.
Several major East Asia economies - including China, Japan and South Korea - have adopted a similar stance by restricting access to BO information, limiting its availability to designated government and regulatory authorities.
In Europe, public access to BO registers has also come under increasing scrutiny.
Notably, countries such as France, Germany, Austria, and the Netherlands have restricted public access following the European Court of Justice’s landmark ruling on Nov 22, 2022 (ECLI:EU:C:2022:912).
The court ruled that unrestricted public access constituted a serious infringement on the rights to privacy and personal data protection under the EU Charter of Fundamental Rights.
These developments reflect a broader international shift towards re-evaluating the extent of public access to BO data, with an emphasis on striking a balance between corporate transparency, personal data protection, and national security considerations.
In addition, CCM wishes to emphasise that the legal obligations relating to the new BO reporting framework are reinforced by stringent enforcement provisions through the Companies (Amendment) Act 2024 and the Limited Liability Partnerships (Amendment) Act 2024.
Any person who knowingly or recklessly provides false or misleading information about a beneficial owner to a company or to CCM commits an offence.
Upon conviction, the offender may be liable to a fine not exceeding RM3 million, imprisonment for a term not exceeding 10 years, or both.
These provisions are designed to uphold the integrity of the BO reporting framework and ensure that the true individuals who ultimately own or control the companies are not concealed.
The enforcement mechanism is essential to ensure compliance with international standards, particularly the FATF recommendations, and to support Malaysia’s broader efforts in enhancing corporate transparency and combating financial crimes.
As Malaysia subscribes to a multi-pronged approach, where CCM is one of the sources to verify BO information of companies and LLPs, persons who can have access to the BO information have a legal duty to report any discrepancies of the information supplied to them with the information or data obtained by or within the knowledge of those persons.
Failure to report such a discrepancy within 30 days from the date of the supply may trigger certain penalties under the Companies Act 2016.
CCM is strongly committed to promoting transparency, good governance and regulatory integrity.
It welcomes engagement with stakeholders, the media and international bodies to continue improving the effectiveness and credibility of Malaysia’s corporate regulatory landscape.
The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
