BO Reporting: A Comprehensive Overview [Issue 2 of 4]
Beneficial ownership identifies the individuals who truly control or benefit from a company’s assets. Here’s a brief look at the importance of BO reporting and the requirement to maintain accurate ownership records.
Why is BO Reporting Important?
BO reporting serves several critical functions:
- Promoting Transparency: It helps regulatory bodies, financial institutions, and stakeholders identify the real individuals behind legal entities.
- Preventing Financial Crimes: Identifying the ultimate owner aids in the fight against money laundering, terrorist financing, and other illicit financial activities.
- Enhancing Corporate Accountability: Identifying BOs fosters greater corporate responsibility by ensuring that those in control are held accountable.
BO Reporting Requirements
In jurisdictions like Malaysia, companies are legally required to identify, verify, and report their BO information to the relevant authorities. These requirements include:
- Initial Reporting: Upon identifying a new BO, companies must notify and confirm the BO’s details. These details must be recorded in the company’s Register of Beneficial Owners (RBO) and submitted to SSM via e-BOS.
- Ongoing Reporting: Companies must keep the BO information updated and report any changes, such as share transfers or changes in company structure, within specified timeframes.
- Annual Verification: Companies are required to verify the BO records are up to date, sending notifications to BOs and recording any updates in the RBO annually.
Stay tune for the upcoming newsletter, we will share with you more on BO Reporting: A Comprehensive Overview.
