Mauritius Takes a Step Forward in Transparency with Beneficial Ownership Disclosure Requirement

In an effort to enhance corporate governance and combat financial crimes, Mauritius has introduced a requirement for companies to disclose beneficial ownership information. This move is expected to promote transparency and accountability in the country’s corporate landscape.

What is Beneficial Ownership?

Beneficial ownership refers to the concept of identifying individuals who ultimately own or control a company. In Mauritius, this concept is divided into three categories under Section 2 of the Companies Act 2001:

• Category 1: Natural persons with a direct or indirect ownership stake of 20% or more, hold voting rights, or exercise control through other means.
  • These individuals will need to provide their information in the shareholder/member field.
• Category 2: Individuals who exert control over a company similar to how one company controls another under section 5 of the Act.
  • These individuals will be required to disclose their details in the UBO OTHER field.
• Category 3: Natural persons who hold executive director positions or have equivalent powers.
  • These individuals too will need to provide their information in the UBO OTHER field.

Benefits of Beneficial Ownership Disclosure

The introduction of this requirement is seen as a significant step towards ensuring transparency and accountability in Mauritius’ corporate landscape. By knowing who ultimately owns and controls companies, regulatory bodies and law enforcement agencies can:

• Better detect and prevent illicit activities such as money laundering and terrorist financing
• Boost investor confidence and attract more foreign investment into the country

Overall, this move is expected to promote a more transparent and accountable business environment in Mauritius, while also helping to combat financial crimes.