By Iva Karen
KUALA LUMPUR, June 16 — The Companies Act, which was amended in 2024, requiring all companies to disclose beneficial ownership (BO), where they had to identify and maintain a register of their beneficial owners, namely those who ultimately own or control a business, is a boost to the country’s financial integrity, says a financial forensics expert.
Commenting on the continued efforts to strengthen the country’s financial integrity, Raymon Ram, who has been in the business of uncovering financial fraud over the years, said Malaysian financial institutions continue to strengthen their anti-money laundering (AML) and counter-terrorism financing (CTF) frameworks by aligning domestic laws with global standards set by the Financial Action Task Force (FATF).
He said that while the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA) provides the legal foundation, Bank Negara Malaysia (BNM) plays a key role in translating FATF recommendations into daily practice.
He said this was done through a risk-based supervisory approach and mandatory policy documents issued by the central bank.
“BNM guidelines require enhanced due diligence (EDD) for high-risk clients and cross-border transactions. These include verifying the identity of beneficial owners, understanding the nature and purpose of business relationships, and screening parties against global sanctions lists.
In practice, Malaysian banks often apply the stricter standards, whether under AMLA or FATF, to ensure compliance in sensitive areas such as correspondent banking and complex international transfers,” he said.
Raymon further said that, BNM also circulates regular FATF updates, such as changes in country risk ratings, prompting financial institutions to adjust their procedures accordingly.
“Many financial institutions have adopted group-wide AML/CFT frameworks to ensure consistency across borders, reinforcing Malaysia’s commitment to international financial integrity and regulatory cooperation,” he said.
Further on the BO, he said companies are legally required under the AMLA framework to provide accurate BO information to authorities and reporting entities such as banks, lawyers, and auditors.
“However, to address confidentiality concerns, access to BO data is restricted under the new Companies (Access to Beneficial Ownership Information) Regulations 2025,” he said.
Raymon, a certified anti-money laundering specialist, explained that only authorised parties including law enforcement, BNM, and licensed designated non-financial businesses and professions (DNFBPs), may access the information for due diligence or legal purposes.
“The information is not available to the public, preserving legitimate privacy while satisfying FATF transparency requirements.
“Authorities encourage businesses to keep their BO records up to date and to cooperate fully with financial institutions and regulators. Legal safeguards such as data protection laws and confidentiality clauses remain in place to ensure sensitive ownership information is handled securely.
“This balanced approach allows Malaysia to meet global AML/CTF standards without compromising individual or corporate privacy, supporting both good governance and financial stability,” he said.
–WE