TRUSTEE (AMENDMENT) ACT 2025

a trust is administered in Malaysia if the control and management of the trust is exercised in Malaysia;

a trustee is resident in Malaysia if—

the trustee, being an individual, is ordinarily resident in Malaysia; or

a settlor;

Trustee (Amendment)

a trustee;

a protector;

each beneficiary, or where applicable, the class of beneficiaries and objects of a power;

any other natural person exercising ultimate effective control over trusts which includes ownership or control exercised through a chain of ownership or control; and

in the case of an express trust, any natural person holding an equivalent position to any person referred to in paragraphs (a) to (e);

“beneficiary” means—

any person who is entitled to the benefit of any trust;

and

in the context of life insurance or another investment linked insurance policy, any person who will be paid the policy proceeds when or if an insured event occurs, which is covered by the policy;

“competent authority” means—

the public authorities with designated responsibilities for combating money laundering or terrorist financing including its financial intelligence unit;

the authorities that have the function of investigating or prosecuting money laundering, associated predicate offences and terrorist financing and seizing or freezing and confiscating criminal assets;

the authorities receiving reports on cross-border transportation of currency and bearer-negotiable instrument; and

the authorities that have anti-money laundering, countering the financing of terrorism supervisory, monitoring responsibilities aimed at ensuring compliance by financial institutions and designated non-financial business or profession with anti-money laundering and countering the financing of terrorism requirements;

“express trust” means a trust created by the settlor usually in the form of a document which includes a written deed of trust;

“property” means—

assets of every kind, whether corporeal or incorporeal, moveable or immovable, tangible or intangible, however acquired; or

legal documents or instruments in any form, including electronic or digital, evidencing title to, or interest in, such assets, including currency, bank credits, deposits and other financial resources, traveller’s cheques, bank cheques, money orders, capital market products, drafts and letters of credit, whether situated within or outside Malaysia, and includes a legal or equitable interest, whether full or partial, in any such property;

“protector” means a person who, under the instrument creating the express trust, has control over how a trustee of the trust administers the trust;

“settlor” means a person who transfers ownership of their assets to any trustee by means of a trust deed or similar arrangement.

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Express trust 44c.  (1)  An express trust shall have the following characteristics:

a fiduciary relationship in which a trustee holds or deals with trust property for the benefit of the beneficiaries or for a lawful purpose; and

a trustee is accountable for the way the trustee carries out the duties imposed on the trustee by any written law.

by any written law;

by a settlor who, subject to any requirements provided under any written law—

indicates an intention to create a trust;

the trust deed and any other document that contains the terms of the trust;

any variations made to the trust deed or trust;

the records of the trust property that identify the assets, liabilities, income, and expenses of the trust and that are appropriate to the value and complexity of the trust property;

any records of the trustee’s decisions made during the trustee’s trusteeship;

any written contracts entered into during the trustee’s trusteeship;

any accounting records and financial statements prepared during the trustee’s trusteeship;

the 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 66a;

any other documents necessary for the administration of the trust; and

any documents referred to in paragraphs (a) to (j)

that were kept by a former trustee during that person’s trusteeship and passed on to the current trustee.

obtain and hold adequate, accurate and up-to-date beneficial ownership information regarding the trust which includes the information on the identity of the beneficial owners as follows:

if an individual—

his full name, including any aliases;

Trustee (Amendment)

his identity card number, birth certificate number, passport number or other similar unique identification number issued by a government authority;

his residential address;

his date of birth;

his nationality; and

any other information as may be determined by the Minister; and

its full name;

its incorporation number or business registration number;

its registered or business address;

its principal place of business, if different from its registered or business address mentioned in subsubparagraph (C);

its date of constitution, incorporation or registration;

its place of incorporation or registration;

the following information about the beneficial owner of the entity:

(AA) his full name, including any aliases;

and

(AB) his identity card number, birth certificate number, passport number or other similar unique identification number issued by a government authority; and

any other information as may be determined by the Minister;

obtain and hold adequate, accurate and up-to-date basic and beneficial ownership information of the parties to the trusts;

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;

keep the information obtained under subsection (1)

and paragraphs (a), (b) and (c) for at least five years after their involvement with the trust ceases;

grant access to the documents and information referred to in subsection (1) and paragraphs (a), (b)

and (c) in accordance with any regulations made under section 66a;

ensure that any information referred to in subsection (1)

and paragraphs (a), (b) and (c) be kept accurate and up-to-date and the information should be updated within one month upon receipt of such information;

and

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.

all matters relating to beneficial ownership information;

the offences which may be compounded and the forms to be used and the method and procedure for compounding the offences under this Act; and

any other matters required by this Act to be prescribed.

Compounding of offences 66 b.  (1)  The Minister may, with the approval of the Public Prosecutor, make regulations prescribing—

any offence under this Act as an offence which may be compounded; and

the method and procedure for compounding such offence.