Addition of Part IVA: Transparency and Effective Control Mechanisms

Applicability

The new sections under part IV_A shall be applicable to express trusts that are governed by Malaysian laws, administered in Malaysia, or having a majority of Malaysia resident trustees.

Information and Records Keeping

1. Trustees shall collect and keep records of the trust, comprises the following documents:-

• the trust deed and any other document that contains the terms of the trust;
• any variations made to the trust deed or trust;
• records detailing the assets, liabilities, income, and expenses of the trust and the value and complexity of the trust property;
• records of the decisions made by trustee;
• any written contracts entered into by trustee;
• any accounting records and financial statements;
• documents of appointment, removal and discharge of trustees including any court orders appointing or removing trustees;
• any letter or memorandum of wishes from the settlor;
• any documents and information required to be kept by trustees as prescribed under section 66_A;
• any other documents necessary for the administration of the trust; and
• any documents referred to paragraphs (a) to (j) that were kept by a former trustee.

2. Trustee shall obtain and hold adequate, accurate, and up-to-date beneficial ownership information of the parties to the trusts.

a) Beneficial owner includes-

• a settlor
• a trustee
• a protector
• each beneficiary, or class of beneficiaries and objects of a power
• any other natural person exercising ultimate effective control over the trust

b) Information required-

c) Register of beneficial ownership shall be:-

• Kept by trustee in physical or electronic form; and
• Updated by the trustee within one month from the date of any changes of the beneficial ownership information
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d) Trustee shall:-

• submit the beneficial ownership information contained in the register of beneficial ownership as requested by any financial institutions and designated non-financial businesses and professions or competent authority within time and form as may be determined by the financial institutions and designated non-financial businesses and professions or competent authority; and
• ensure that the beneficial ownership information submitted is complete and accurate.

3. Trustee shall obtain and hold basic information on other regulated agents of, and service providers to, the trust including but not limited to investment advisors or managers, accountants and tax advisors.

Practical Notes

1. Trustee shall keep the information and records obtained for at least five years after ceasing to act as trustee.
2. Trustee shall grant access to the information and records obtained to authorised parties.
3. Trustee shall ensure that the information and records obtained be kept accurate and up-to-date and the information should be updated within one month upon receipt of such information; and
4. Trustee shall disclose their status to the financial institutions and the designated non-financial businesses and professions when, in their function, forming a business relationship or carrying out an occasional transaction above the threshold.

Compounding of Offences

Any trustee who contravenes who contravenes with the new sections commits an offence and shall be liable to a fine not exceeding five thousand ringgit, on conviction.

For more information, you may refer to the following legislations:-

1. Trustee (Amendment) Act 2025
2. Trustee (Register of Beneficial Ownership) Regulations 2025
3. Trustee (Exemption) Order 2025
4. Trustee (Financial Institutions and Designated Non-Financial Businesses and Professions) Order 2025
5. Trustee (Compounding of Offences) Regulations 2025