The Rules and Regulations, inter alia
, require a Reporting Malaysian Financial Institution2
to furnish to the Director General of Inland Revenue of Malaysia, a return stating the information (as applicable) specified in Article 2 of the Agreement in the format as may be determined by the said Director General:
The Agreement requires a Reporting Malaysian Financial Institution to apply the due diligence procedures contained in Annex I of the Agreement to identify U.S. Reportable Accounts and accounts held by Non-Participating Financial Institutions4
It is to be noted that, subject to prescribed exceptions, a Reporting Malaysian Financial Institution includes a Custodial Institution, a Depository Institution, an Investment Entity, and a Specified Insurance Company (each as defined in the Agreement).
As a general rule, the Malaysian Government is to exchange the information received from the Reporting Malaysian Financial Institutions by the later of nine months after the end of the calendar year to which the information relates or the next September 30th after the Agreement enters into force.
Alert by Lim Koon Huan (Partner and Co-Head) of the Compliance Practice of Skrine
The term ‘U.S. Reportable Account
’ is defined in paragraph (y) of Article 1(1) of the Agreement.
The term ‘Reporting Malaysian Financial Institution
’, is defined in paragraph (n) of Article 1(1) of the Agreement read, inter alia
, with paragraphs (g), (l) and (o) of Article 1(1) of the Agreement.
See Rule 5(1) of the Rules and Regulation 5(1) of the Regulations.
The term ‘Non-Participating Financial Institutions
’ is defined in paragraph (o) of Article 1(1) of the Agreement.