Register of Beneficial Ownership – Now Compulsory
(Section 60B of the Companies Act 2016)
Effective 1 April 2024, every company is required to comply with the following obligations in relation to the Register of Beneficial Ownership (RBO):
- Every company must maintain a register of beneficial owners and record in it all necessary information as required by the Act.
- The register of beneficial owners must be kept at the registered office or at any other place in Malaysia as notified to the Companies Commission of Malaysia (SSM).
- Any changes to particulars in the register must be lodged with the SSM within 14 days from the date the change is recorded in the register.
- The company must retain information of its beneficial owners (including those who have ceased to be beneficial owners) for seven years from the date the person ceases to be a beneficial owner.
Penalty for Non-Compliance
Section 60B(6) provides that any company and every officer who contravenes this requirement commits an offence and, upon conviction, shall be liable to a fine not exceeding RM20,000. For continuing offences, an additional fine not exceeding RM500 per day may be imposed.
Important Point:
The maintenance of the Register of Beneficial Ownership is now a mandatory statutory obligation. Companies must ensure timely recording, updating, and retention of information to remain compliant.