log in
All Articles | Back

Member Articles


Shearn Delamore & Co. Legal Update September 2020 (Financial Services) 

by Christina Kow, Pamela Kung

Published: October, 2020

Submission: October, 2020

 



SME Merger and Acquisition instruments exempt from stamp duty


The Prime Minister announced that starting from 1 July 2020 until 30 June 2021, eligible SMEs will be exempted from paying stamp duty on instruments for Mergers & Acquisitions (“M&A instruments”), including Contracts or Agreements for sale or lease of properties (including land, building, machinery and equipment); Instrument of Transfer and Memorandum of Understanding; Loans or Financing Agreement; and First Tenancy Agreement.


To be eligible, SMEs must:


• Be 100% Malaysian owned; and


• have annual sales turnover of less than RM50 million or full-time employees of less than 200, as per the definition of SMEs in the manufacturing sector; or


• have annual sales turnover of less than RM20 million or full-time employees of less than 75, as per the definition of SMEs in the services sector.


Applicants must obtain the certification of SME Status and 100% Malaysian ownership status in order to verity the SME status.


The announcement as well as Procedures and Guidelines, and an FAQ can be found here https://tinyurl.com/yyclu9xv.


BNM issues FAQs and Guidances on AML/CFT and TFS


On 1 September 2020 Bank Negara Malaysia (“BNM”) issued FAQs and Guidances for both Financial Institutions (“FIs”) and Designated Non-Financial Businesses and Professions (“DNFBPs”) and Non-Bank Financial Institutions (“NBFIs”), with the purpose of providing further clarification on the requirements in the revised Anti-Money Laundering, Countering Financing of Terrorism and Targeted Financial Sanctions (“AML/CFT and TFS”) Policy Document that was issued on 31 December 2019 and came into force on 1 January 2020.


These include:


• Guidance on Verification of Individual Customers for Customer Due Diligence; and


• Guidance on Beneficial Ownership.


The full announcement and set of Guidances can be found here for FIs https://tinyurl.com/y3y7zkz5 and here for DNFBPs & NBFIs https://tinyurl.com/yyxf5kal.


For further information regarding financial services matters, please contact our Financial Services Practice Group.


 


 

MEMBER COMMENTS

 

 

WSG Member: Please login to add your comment.

    Disclaimer

WSG's members are independent firms and are not affiliated in the joint practice of professional services. Each member exercises its own individual judgments on all client matters.

HOME | SITE MAP | GLANCE | PRIVACY POLICY | DISCLAIMER |  © World Services Group, 2020