Financial Crime World

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Mauritius Takes a Step towards Transparency: Beneficial Ownership Disclosure Mandated

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In its ongoing efforts to combat financial crimes and ensure transparency, Mauritius has implemented legislation requiring companies to disclose their beneficial ownership information. The move aims to prevent legal persons and arrangements from being misused for criminal purposes, such as money laundering and terrorist financing.

What is Beneficial Ownership?

Beneficial ownership refers to the natural person who ultimately owns or controls a company, either directly or indirectly. This can be achieved through direct shareholding, voting rights, ownership interest, or control by other means.

Disclosure Requirements

Companies registered in Mauritius are now required to keep a register of their shareholders and beneficial owners. The information must be lodged with the Registrar within 14 days from the date of any entry or alteration in the share register. Failure to comply with this requirement can result in severe penalties, including fines of up to Rs 300,000.

Other Sources of Beneficial Ownership Information

Beneficial ownership information can also be obtained through various other sources, including:

  • Registries
  • Financial institutions
  • Designated non-financial business professions (DNFBPs)
  • Companies themselves
  • Competent authorities such as supervisors, tax authorities, and stock exchanges

Legislative Reforms

The beneficial ownership disclosure requirement is part of a broader legislative reform aimed at enhancing transparency in the financial sector. Other reforms include:

  • Amendments to the Limited Partnerships Act
  • Limited Liability Partnerships Act
  • Foundations Act
  • Business Registration Act

Importance of Beneficial Ownership Disclosure

Beneficial ownership disclosure is crucial for detecting and preventing financial crimes, such as money laundering and terrorist financing. It also helps to ensure that companies are held accountable for their actions and that investors can make informed decisions about where to invest their money.

Conclusion

Mauritius’s move towards beneficial ownership disclosure marks a significant step towards transparency in the financial sector. The requirement is expected to enhance the country’s ability to detect and prevent financial crimes, while also promoting good corporate governance and investor confidence.