What are the penalties for not complying with beneficial ownership rules in Malaysia?
Breaching the beneficial owner register rules is an offence for the company and every officer under s.60B(6): a fine of up to RM20,000, plus up to RM500 for each further day the offence continues after conviction. Breaches of the disclosure duties in ss.60C and 60D fall under the Act's general penalty: a fine of up to RM50,000, and for individuals up to three years in prison.
The Companies (Amendment) Act 2024 [Act A1701] made breaches of Division 8A offences.
Register and lodgement (s.60B(6)). The company and every officer who contravene s.60B commit an offence. On conviction the fine is up to RM20,000, and for a continuing offence a further fine of up to RM500 for each day the offence continues after conviction. Section 60B covers keeping the register, lodging notice of changes within 14 days and keeping information on former owners for seven years.
Disclosure duties (ss.60C and 60D)
- s.60C(7): a company and each officer commit an offence if they contravene the rules on obtaining beneficial owner information from members and others.
- s.60C(8): failing to respond to a company's notice is an offence unless the company already held the information or the request was frivolous or vexatious.
- s.60C(9): knowingly or recklessly making a false statement in reply is an offence.
- s.60D(4): a beneficial owner who fails to notify the company commits an offence.
These sections state no penalty of their own, so the general penalty in s.588 applies: for an individual, a fine of up to RM50,000, imprisonment of up to three years, or both; for anyone else, a fine of up to RM50,000.
Other consequences
- SSM Practice Directive 9/2024 says late lodgement of beneficial ownership information attracts a late lodgement penalty, with no extension of time once the transition period ended, although lodging itself is free.
- Repeated non-compliance can draw enforcement attention.
The safest approach is to record and lodge changes promptly, and keep evidence of requests sent to members.
Legal basis
- Companies Act 2016, s.60B(6)
- Companies Act 2016, s.60C(7) to (9)
- Companies Act 2016, s.60D(4)
- Companies Act 2016, s.588
Sources
Applies to From 1 April 2024 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- What does a company secretary do for a Sdn Bhd?A company secretary looks after the company's statutory compliance: keeping statutory registers, lodging forms with SSM on time, preparing notices and minutes of meetings, and advising directors on their Companies Act duties. They do not replace the directors, who remain responsible for the company.
- What is beneficial ownership reporting for Malaysian companies?Since the Companies (Amendment) Act 2024 (in force 1 April 2024), every Malaysian company must identify the natural persons who ultimately own or control it, keep a beneficial owner register and notify SSM of the information and later changes. A beneficial owner can be someone with ultimate effective control, not only a shareholder.
- What is the deadline to lodge beneficial ownership information with SSM?Changes to the beneficial owner register must be lodged with SSM through e-BOS within 14 days of being recorded (s.60B(3) and (4)). SSM gave companies until 30 September 2024 to lodge their first information without the 14-day limit or late charges. That window has closed, and lodging carries no SSM fee.
- When is the annual return due for a Sdn Bhd in Malaysia?A company must lodge its annual return with SSM within 30 days from the anniversary of its incorporation date, every calendar year. It does not apply in the calendar year the company is incorporated. The return is signed by a director or secretary.
- What is the penalty for lodging an annual return late in Malaysia?Late or missing annual returns are an offence for the company and every officer: a fine of up to RM50,000 on conviction, plus up to RM1,000 for each further day the offence continues. Failing to lodge for three or more consecutive years can also lead SSM to strike the company off.