Financial Crime World

Mauritius Introduces Stricter Rules on Beneficial Ownership Disclosure

In an effort to increase transparency and combat money laundering, the Mauritius government has introduced new regulations requiring companies to disclose their beneficial owners.

New Requirements for Companies Operating in Mauritius

As of March 16, 2020, every company operating in Mauritius is required to maintain a share register that includes the names of its beneficial owners or ultimate beneficial owners in alphabetical order. This information must be filed with the Corporate and Business Registration Department (CBRD) within 14 days of any changes made to the share register, including:

  • Issue of new shares
  • Transfers of existing shares

Records Retention Period

Companies are also required to keep records of their beneficial ownership for a minimum period of seven years from the date of entry or alteration in respect of any issue, repurchase, redemption, or transfer of shares by or to a shareholder.

Definition of Beneficial Owner

A beneficial owner is defined as a natural person who holds at least 20% of the aggregate voting power in a meeting of shareholders or exercises overall control over the company.

Disclosure of Information

The Registrar of Companies has been granted discretion to disclose this information only in specific circumstances, including:

  • With the consent of the beneficial owner or ultimate beneficial owner
  • For the purpose of an investigation or enquiry
  • As ordered by a court of law

Consequences of Non-Compliance

Failure to comply with these new regulations will result in severe penalties, including fines not exceeding:

  • Rs 300,000 for companies other than small private companies
  • Rs 100,000 for small private companies

Objectives of the Regulations

The introduction of these regulations aims to improve transparency and combat money laundering, tax evasion, and terrorist financing. The Mauritian government has taken a significant step towards ensuring that the country’s financial sector operates in a fair and transparent manner.