Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (May 23): Transparency International Malaysia has called on the government to introduce a central registry for beneficial ownership of companies registered in Malaysia and funds kept in Labuan to overcome corruption and money laundering activities.

Its president Datuk Akhbar Satar said this in an article today titled Why Public Must Know Who Really Owns a Company in light of the bizarre graft cases that have been unveiled in the country recently.

He said the move to create a central registry that can be accessed by the public will promote good governance and prevent companies from being misused or involved in illicit business, and help identify and report suspicious activities.

"For a start, the government must make it mandatory for all companies who are bidding for public sector contracts to disclose those who actually own, control or benefit from the company," he said.

This is to ensure corrupt officials and politicians will be unable to award themselves through their families or cronies any government contracts, he said.

"Creating and accessing this open data repository is important to disclose who owns the companies and makes it more difficult for fraudsters and white collar criminals to hide their illegal money, and also helps to detect acts of corruption, tax evasion and money laundering," Akhbar added.

For example, he cited the move by the UK government to introduce and create the world's first public register of the ultimate owners of companies. As a result, the UK government estimated that 99% of UK companies already have the name of their ultimate, beneficial owner in the public domain.

"By introducing a central registry for beneficial ownership of companies, issues like tax evasion, money laundering and the financing of terrorism can be addressed at least partially, and thus improve the investment climate in the UK," Akhbar said.

He highlighted that Malaysians see bribery and corruption as the biggest problem for businesses in Malaysia, proven by the KPMG's 2013 Fraud, Bribery and Corruption Survey.

Worryingly, organised crime and financial crime together cost Malaysia between RM15 billion and RM25 billion per annum, according to the Commercial Crime Department of the Royal Malaysia Police.

The effect of corruption, transnational crime and organised crime does not stop at just damaging economic and capital flow, Akhbar said. Beyond that, these illegal activities have a greater impact on the society and the image of Malaysia.

"There is no good reason why the government should not immediately adopt this measure," Akhbar concluded.

 

      Print
      Text Size
      Share