Financial Crime World

Here is the converted article in Markdown format:

Compliance Officer Responsibilities in Malaysia: A Requirement by Law

In Malaysia, every Private Limited Takaful (PLT) company is mandated to have a Compliance Officer under the Limited Liability Partnership Act 2012. This requirement is non-negotiable and failure to comply may result in severe consequences.

Roles and Responsibilities of a Compliance Officer

The Compliance Officer does not need to be professionally qualified, but must be resident in Malaysia. The role can be held by one of the partners of the PLT company. While it’s not necessary to hire an external company secretary, the Compliance Officer will be responsible for fulfilling various statutory obligations.

Duties and Responsibilities

According to the Limited Liability Partnership Act 2012, the Compliance Officer is duty-bound to perform the following tasks:

  • Maintain records: Maintain a proper register of partners and Compliance Officers
  • Submit declarations: Ensure annual declarations are submitted to the Companies Commission of Malaysia (SSM) every year
  • Keep records: Keep records of partnership agreements, supplementary agreements, and resolutions
  • Maintain office: Maintain a registered office for communication and correspondence with SSM
  • Retain documents: Retain the Certificate issued by SSM
  • Keep accounting records: Keep proper accounting records at the registered office
  • Manage instruments: Manage instruments of charges
  • Display company information: Display the PLT’s name and registration number outside its registered office and place of business

Additionally, the Compliance Officer is also responsible for governance under the Income Tax Act 1967. Specifically, they must:

  • Maintain accounting records: Maintain complete accounting records for at least seven years
  • Submit tax returns: Submit annual tax returns in Form PT to the Inland Revenue Board (LHDN)
  • Prepare estimates of tax: Prepare and submit estimates of tax every year
  • Notify changes: Notify LHDN of any changes to the PLT’s accounting period
  • Pay taxes on time: Ensure taxes are paid to LHDN on time

Penalties for Non-Compliance

The Compliance Officer will be held personally liable for all penalties, including administrative fines, imposed on the PLT for non-compliance with the Limited Liability Partnership Act 2012. This underscores the importance of appointing a dedicated and knowledgeable Compliance Officer to ensure compliance with statutory requirements.