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Myanmar: Beneficial ownership disclosure requirements, effective 2020

Myanmar: Beneficial ownership disclosure requirements

Guidance (Directive No. 17/2019) concerning the beneficial ownership disclosure requirements is effective 1 January 2020.

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“Beneficial ownership” is defined as those natural persons who ultimately own or control a customer or the natural person on whose behalf a transaction is being conducted. The term also refers to those persons who exercise ultimate effective control over a legal entity or arrangement (thus including companies, partnerships, associations and trusts or similar arrangements).

For these purposes, a beneficial owner is any individual who:

  • Directly or indirectly holds more than 5% of the shares and/or voting rights
  • Directly or indirectly has the right to appoint and remove the majority of the board
  • Has the authority to exercise, or actually exercises, significant influence or control over the public or private company or corporate entity.

All legal entities and legal arrangements must obtain and keep records about their beneficial ownerships and then must submit the required information to the tax authorities and to the Directorate of Investment and Company Administration (DICA). Furthermore, all legal entities and legal arrangements must cooperate with the competent authorities with respect to determining the beneficial owner by authorising one or more natural persons resident in Myanmar to provide all basic information and available beneficial ownership information, and giving further assistance to the authorities, or by authorising a designated non-financial business and professions in Myanmar to provide the beneficial ownership-related information.

Information and records must generally be retained for five years. A failure to comply can be subject to penalties pursuant to the anti-money laundering law.


Read a January 2020 report [PDF 563 KB] prepared by the KPMG member firm in Myanmar

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

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