Mauritius Tightens Benchmarks on Beneficial Ownership Disclosure

In an effort to enhance transparency and accountability, the Registrar of Foundations in Mauritius has issued a Practice Direction requiring foundations to disclose their beneficial ownership information.

New Guidelines for Beneficial Ownership Registration

Under the new guidelines, every foundation must maintain a register of its beneficial owners. This includes:

• The names of individuals who have an interest of 20% or more in the foundation
• Individuals who exercise overall control over the foundation

This information must be updated within 14 days of any changes made to the register and kept for a period of five years.

Designated Authority for Notifications

The Corporate and Business Registration Department (CBRD) has been designated as the competent authority to receive notifications of any changes to beneficial ownership. Foundations are required to file these notifications in person at the CBRD counter.

In addition, foundations must communicate their existing beneficial owners prior to the coming into operation of this provision.

Definition of Beneficial Owners

The definition of a beneficial or ultimate beneficial owner is:

• A natural person who exercises control over the foundation
• A natural person who has an interest of 20% or more in it (directly or through a nominee)

Confidentiality and Disclosure

The Registrar has clarified that confidential information will only be disclosed in limited circumstances, including:

• Where required by the beneficial owner
• For investigative purposes
• Upon order of a court

Failure to comply with these provisions is considered an offence and may result in fines not exceeding 500,000 rupees on conviction.

Impact and Effectiveness Date

This development is seen as a significant step towards increasing transparency and combating money laundering and other financial crimes in Mauritius. The new guidelines come into effect immediately, and foundations are expected to comply accordingly.