Local owner VS Foreign owner for KYC checks before corporate bank account opening in Malaysia
Local Malaysians have an identity card or known as “MyKad”. This “MyKad” is an identity card with a unique 12-digit number issued to Malaysian citizens and Permanent Resident (PR). A “MyKad” is normally used for any official business made by the citizen and opening a bank account is one of it.
If a Malaysian wishes to open any bank account, the banker will normally request for some documentations which includes a copy of their “MyKad”. This is because the banker will need to run a background check to ensure the individual is not an exposed person as well as their credit score.
A credit score of a Malaysian citizen can be checked in two systems which are:
A CCRIS report portrays information regarding outstanding payments, special attention accounts as well as a loan application status made by a Malaysian. On the other hand, a CTOS report provide information on legal matters such as bankruptcy status, legal actions, and case status. It also portrays a Malaysian involvement in businesses and corporations. If a Malaysian CCRIS and CTOS report is clean, a corporate bank account opening will be smooth and might only take around 1 to 2 weeks to open.
However, the same cannot be said to a foreigner. Bankers normally tap into their international database to ensure the foreign clients have a clean background. Aside from that, there are some nationalities where Malaysia bank policy does not allow to open a bank account. Some of them are:
The central bank of Malaysia (BNM) has issued a direction stating that “no person in Malaysia shall undertake or engage in any dealing or transaction with or involving a Specified Person.” The direction also stated that “no person in Malaysia shall undertake or engage with any person in any dealing or transaction using or involving Restricted Currency.”
The term “Specified Person” and “Restricted Currency” refers to the countries sanctioned as involved with political unrest or civil war or high-risk countries.
Disclaimer: This statement was retrieved from the Central Bank of Malaysia official website.
However, if your country is not listed as a high-risk country by the central bank of Malaysia (BNM), the procedure should be more straightforward after the bankers ensure your background check is clear and the business plan is encouraging.