Nominee Account Declaration (Malaysia)
NOMINEE ACCOUNT DECLARATION
Companies Act 2016 (Section 14) | Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA 2001) | Capital Markets and Services Act 2007 (CMSA 2007) | Personal Data Protection Act 2010 (PDPA 2010)
Declaration Date: [Declaration Date]
Reporting Institution: [Reporting Institution]
SECTION A — NOMINEE DETAILS
Nominee Type: [Nominee Type]
Full Legal Name: [Nominee Name]
NRIC / SSM No.: [Nominee ID Number]
Address: [Nominee Address]
Authorised Signatory (Corporate): [Nominee Authorised Signatory]
SECTION B — BENEFICIAL OWNER DETAILS
Beneficial Owner Type: [Beneficial Owner Type]
Full Legal Name: [Beneficial Owner Name]
NRIC / Passport / SSM No.: [Beneficial Owner ID Number]
Nationality / Country of Incorporation: [Beneficial Owner Nationality]
Address: [Beneficial Owner Address]
Ultimate Controlling Natural Persons (for corporate beneficial owners):
[Ultimate Controlling Persons]
SECTION C — ASSETS HELD BY NOMINEE
Asset Type: [Asset Type]
Description of Assets: [Asset Description]
Company / Issuer Details: [Holding Company Details]
SECTION D — NOMINEE ARRANGEMENT
Type of Arrangement: [Arrangement Type]
Date of Arrangement: [Arrangement Date]
Consideration for Nominee Services: [Consideration Paid]
SECTION E — DECLARATIONS
Declaration by Nominee:
I/We, [Nominee Name] (NRIC / SSM No.: [Nominee ID Number]), hereby declare that I/we hold the assets described in Section C as nominee for and on behalf of [Beneficial Owner Name] (NRIC / SSM No.: [Beneficial Owner ID Number]) under a [Arrangement Type] arrangement, and that I/we have no beneficial interest in the said assets.
I/We further declare that all information provided in this declaration is true, complete, and accurate, and I/we consent to [Reporting Institution] verifying and retaining this information for AML/CFT purposes under AMLA 2001 and PDPA 2010.
Nominee Signature: _______________________________
Name: _______________________________
Designation: _______________________________
Date: _______________________________
Declaration by Beneficial Owner:
I/We, [Beneficial Owner Name] (NRIC / SSM No.: [Beneficial Owner ID Number]), hereby declare that I/we am/are the sole beneficial owner of the assets described in Section C held by [Nominee Name] as nominee, that no other person has any undisclosed beneficial interest in those assets, and that this arrangement does not involve proceeds of money laundering or terrorism financing under AMLA 2001.
Beneficial Owner Signature: _______________________________
Name: _______________________________
Designation: _______________________________
Date: _______________________________
FOR INSTITUTIONAL USE ONLY
Verified by: _______________________________ Date: _______________________________
Risk classification: _______________________________
Nominee
________________
Signature
Beneficial Owner
________________
Signature
What Is a Nominee Account Declaration (Malaysia)?
A Nominee Account Declaration in Malaysia sets out how the trustee is to hold and apply the trust property for the named beneficiaries.
The Companies Act 2016, Section 14, introduced mandatory disclosure of beneficial ownership for companies registered with the Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia, SSM). Under Section 14(1) of the Companies Act 2016, a company is prohibited from having a nominee director — a director who acts on the instructions of another person without disclosing that relationship — unless the beneficial principal is disclosed in the company's register of members or directors as maintained with SSM. From 1 January 2024, SSM's implementation of the AMLA (Amendment) Act 2023 strengthened beneficial ownership requirements for all Malaysian-incorporated companies.
For securities held through Central Depository System (CDS) accounts at Bursa Malaysia Depository Sdn Bhd (BMD), nominee accounts are used by banks, stockbrokers, and fund managers to hold shares on behalf of clients. Under Bursa Malaysia's rules and the Capital Markets and Services Act 2007 (CMSA 2007), the beneficial owner of shares held in a nominee account must be identifiable from the nominee's records, and the nominee must provide this information to Bursa Malaysia, the Securities Commission Malaysia (SC), and BNM upon request.
Bank Negara Malaysia's AMLA 2001 beneficial ownership reporting requirements, strengthened by the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities (Amendment) Act 2023, require reporting institutions — including banks, stockbrokers, and fund managers — to identify and verify the beneficial owners of all nominee accounts and structures. A nominee who fails to disclose the beneficial owner of an account upon request by a reporting institution faces penalties under Section 82A of AMLA 2001.
A Nominee Account Declaration is the instrument through which the nominee formally discloses the beneficial owner's identity, the nature of the nominee arrangement, and the terms under which the nominee holds the assets — providing a documented record for regulatory and audit purposes.
The legal framework governing the Nominee Account Declaration (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a Nominee Account Declaration (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Financial Services Act 2013 (Act 758) sets the foundational requirements.
When Do You Need a Nominee Account Declaration (Malaysia)?
A Nominee Account Declaration in Malaysia is needed whenever assets — shares, securities, bank accounts, or real property — are held by one person (the nominee) on behalf of another (the beneficial owner) and disclosure is required by law or by a financial institution.
A Nominee Account Declaration is required when a stockbroker or bank opens a nominee CDS account or trust account at Bursa Malaysia Depository (BMD) to hold shares on behalf of a client, and the client (beneficial owner) must be identified for AML/CFT compliance under AMLA 2001.
A Nominee Account Declaration is needed when a company director is appointed as a nominee for another person and must disclose the beneficial principal to SSM under the Companies Act 2016, Section 14. Nominee directorships without disclosure constitute an offence under Section 14(3) of the Companies Act 2016.
A Nominee Account Declaration is required when an individual or company holds shares in a Malaysian company on behalf of a foreign entity under a nominee agreement, and SSM's beneficial ownership registry requires the foreign entity to be identified in the company's beneficial ownership register (BO Register) under the Companies (Amendment) Act 2024.
A Nominee Account Declaration is needed when a trust company or fund administrator holds assets on behalf of a beneficiary trust, and the beneficiaries must be disclosed to the trustee and to reporting institutions under AMLA 2001.
A Nominee Account Declaration is required when a lawyer or accountant acts as a nominee holder of client funds or assets as part of a designated non-financial business under AMLA 2001, and must document the beneficial ownership for AML/CFT compliance.
Parties in Malaysia should prepare a Nominee Account Declaration (Malaysia) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Nominee Account Declaration (Malaysia)
A valid Nominee Account Declaration in Malaysia must contain the following essential elements to comply with the Companies Act 2016, AMLA 2001, and the CMSA 2007.
Nominee Identification: Full legal name, NRIC/passport number or SSM registration number, address, and contact details of the nominee (the registered holder). For corporate nominees, include SSM registration number, registered address, and the name and NRIC of the authorised signatory.
Beneficial Owner Identification: Full legal name, NRIC/passport number (for individuals) or SSM registration number (for companies), nationality or country of incorporation, address, and contact details of the beneficial owner. For companies, include details of all individuals who ultimately own or control 25% or more of the beneficial owner entity — consistent with AMLA 2001 Section 14 beneficial ownership definition.
Description of Assets Held: A precise description of the assets held by the nominee on behalf of the beneficial owner — whether shares in a specific Malaysian company (with SSM number, share class, and number of shares), securities held in a CDS account at Bursa Malaysia Depository, bank account funds, or other specified assets.
Nature of Nominee Arrangement: A description of the relationship between nominee and beneficial owner — whether the nominee holds assets under a formal Trust Deed, a Nominee Agreement, or a bare nominee arrangement; the terms under which the nominee holds the assets; and any consideration paid for the nominee's services.
Declaration of Beneficial Entitlement: An explicit declaration by the beneficial owner that they are the sole beneficial owner of the assets, that no other person has an undisclosed beneficial interest, and that the arrangement does not involve proceeds of money laundering or terrorism financing under AMLA 2001.
AMLA 2001 and PDPA 2010 Compliance: Consent by both nominee and beneficial owner for the reporting institution to verify and retain this information for AML/CFT purposes under AMLA 2001, and acknowledgement of PDPA 2010 personal data rights.
Signature and Date: Signatures of both the nominee and the beneficial owner, with date of execution.
Additional compliance elements for a Nominee Account Declaration (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
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Forms Legal. (2026). Nominee Account Declaration (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/financial/forms/nominee-account-declaration-malaysia
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author = {{Forms Legal}},
title = {Nominee Account Declaration (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/financial/forms/nominee-account-declaration-malaysia}},
note = {Free legal document template. Based on Financial Services Act 2013 (Act 758)}
}Frequently Asked Questions
Nominee shareholdings are generally lawful in Malaysia, provided the beneficial ownership is properly disclosed. The Companies Act 2016, Section 14, requires that nominee directors disclose their relationship with the beneficial principal to the company and SSM. For nominee shareholders, the company must maintain a register of members reflecting the nominee's name, and — from 2024 under SSM's enhanced beneficial ownership requirements — the company's Beneficial Ownership (BO) Register must identify the ultimate natural person(s) who beneficially own shares through nominee structures. Nominee arrangements that conceal beneficial ownership to circumvent tax obligations, money laundering controls under AMLA 2001, or foreign ownership restrictions under sector-specific laws (such as the Communications and Multimedia Act 1998 or the Foreign Investment Committee guidelines) may constitute criminal offences under the Penal Code (Section 420) and AMLA 2001.
Under the Companies Act 2016 (as amended) and SSM's implementation of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities (Amendment) Act 2023, all Malaysian-incorporated companies are required to maintain a Beneficial Ownership (BO) Register identifying the natural persons who ultimately own or control the company. A beneficial owner is defined as a natural person who owns or controls, directly or indirectly, 20% or more of the shares or voting rights in the company, or who exercises control over the company's management and operations. Companies must notify SSM of their beneficial owners through the SSM Beneficial Ownership Framework portal. Failure to maintain or file the BO Register constitutes an offence under the Companies Act 2016, Section 14, with penalties including fines up to RM 200,000 for the company and its officers.
Undisclosed nominee arrangements in Malaysia may attract significant civil and criminal penalties depending on the nature of the non-disclosure. Under Section 14(3) of the Companies Act 2016, a nominee director who fails to disclose the beneficial principal's identity to the company commits an offence, with fines up to RM 500,000 and/or imprisonment. Under AMLA 2001, a beneficial owner who uses a nominee arrangement to conceal assets that are proceeds of crime may be charged with money laundering under Section 4 of AMLA 2001, which carries imprisonment up to 15 years and a fine of up to RM 5 million or 5 times the value of the proceeds. Under the Income Tax Act 1967, undisclosed nominee arrangements used for tax evasion may attract back taxes, penalties up to 100% of the tax understated, and prosecution under Section 114 of the Income Tax Act 1967.
Foreign nationals and foreign companies may hold shares in Malaysian companies through nominee arrangements, subject to sector-specific foreign ownership restrictions and the Companies Act 2016 beneficial ownership disclosure requirements. Under Malaysia's foreign investment framework — administered by the Malaysian Investment Development Authority (MIDA) and sector-specific regulators — certain industries (such as telecommunications, banking, and media) have maximum foreign equity limits. Using a Malaysian nominee to exceed these limits while concealing the foreign beneficial ownership constitutes an offence under the relevant sector legislation and the Companies Act 2016. Disclosed nominee arrangements — where the foreign beneficial owner is properly recorded in the company's beneficial ownership register with SSM — are permissible subject to the applicable foreign equity limits. The Economic Planning Unit (EPU) and MIDA enforce foreign ownership compliance in regulated sectors.
A bare nominee arrangement in Malaysia is one in which the nominee holds legal title to assets — shares, property, or securities — purely as an agent of the beneficial owner, with no independent discretion or beneficial interest of their own. The nominee is obliged to act on the beneficial owner's instructions and to transfer the assets to the beneficial owner or their nominee upon demand. In contrast, a trustee under an express Trust Deed has legal title and fiduciary duties, with potential discretionary powers over the trust assets. Under the Contracts Act 1950, a bare nominee's authority to hold assets is derived from an agency relationship governed by the principles of agency in Part X of the Contracts Act 1950. A bare nominee agreement should be documented in writing to evidence the agency relationship and the beneficial owner's entitlement, particularly for asset protection, estate planning, and regulatory compliance purposes under the Companies Act 2016 and AMLA 2001.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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