Financial Crime World

Mauritius Introduces Beneficial Ownership Disclosure Requirements for Limited Liability Partnerships

In an effort to enhance transparency and accountability, the Government of Mauritius has introduced new regulations requiring Limited Liability Partnerships (LLPs) to disclose beneficial ownership information.

Background

According to Practice Direction No. 1 of 2020, every LLP must maintain records of the names of its beneficial owners or ultimate beneficial owners. This is a significant step towards increasing transparency and accountability in Mauritius’ corporate sector.

Requirements

The Corporate and Business Registration Department (CBRD) is responsible for receiving notifications of any changes in beneficial ownership, which must be filed within 14 days of making such changes. LLPs are required to keep these records for a period of seven years from the date of entry or amendment made to the register.

  • Beneficial owners are defined as natural persons who hold at least 20% of the aggregate voting power in a meeting of partners or exercise overall control over the LLP.
  • This information is only disclosed to third parties under specific circumstances, including with the consent of the beneficial owner or ultimate beneficial owner, for the purpose of an investigation or inquiry, or upon court order.

Consequences of Non-Compliance

Failure to comply with these regulations constitutes an offence and may result in fines not exceeding 200,000 rupees on conviction. The Registrar of Limited Liability Partnerships has emphasized the importance of LLPs keeping accurate records of their beneficial ownership structures, stating that this information is crucial for ensuring transparency and preventing money laundering and other financial crimes.

Impact

The new regulations aim to enhance the country’s business environment by providing greater clarity and consistency in corporate governance and regulatory compliance. This move is seen as a significant step towards increasing transparency and accountability in Mauritius’ corporate sector.