The Financial Intelligence Anti-Money Laundering Regulations 2018 (FIAML Regulations 2018) spells out that a reporting person, that is a bank, financial institution, cash dealer or member of a relevant profession or occupation, is required to identify the beneficial owner and take reasonable measures to verify the identity of the beneficial owner, using relevant information or data obtained from a reliable source such that the reporting person is satisfied that he knows who the beneficial owner is.
Where the customer is a legal person, the reporting person shall identify and take reasonable measures to verify the identity of beneficial owners by obtaining information on the identity of all the natural persons who ultimately have an ownership interest of 20 per cent or more in the legal person. In the event that no natural person(s) holds an ownership interest of 20 per cent or more in the legal person, the natural person(s) exercising ultimate effective control over the legal person is required to be identified and verified. For customers that are legal arrangements, the reporting person shall identify and take reasonable measures to verify the identity of beneficial owners by obtaining information as listed below:
- For trusts, on the identity of the settlor, the trustee, the beneficiaries or class of beneficiaries, and where applicable, the protector or the enforcer, and any other natural person exercising ultimate effective control over the trust, including through a chain of control or ownership; and
- For other types of legal arrangements, on the identity of the persons in equivalent or similar positions.
In addition, the Financial Intelligence Anti-Money Laundering Act (FIAMLA) 2002 imposes that a Reporting Person applies Customer Due Diligence (CDD) on Beneficial Owners with which it has business relationship.
The FIAMLA also requires that all records obtained through CDD measures evidencing the identity and records of beneficial owners shall be maintained for a period of not less than 7 years after the business relationship has ended.
On 08 January 2020, the Registrar of Companies of Mauritius issued a Practice Direction entitled “Disclosure of Beneficial Ownership information to the Registrar”. This Practice Direction covers the elements on the responsibilities of Reporting Persons vis a vis Beneficial Owners.
This Practice Direction defines beneficial ownership as ‘a natural person who holds by himself or his nominee a share or interest in a share which entitles him to exercise not less than 20% of the aggregate voting power in a meeting of shareholders/partners or council members.’
According to this Practice Direction, every company or any other entity such as partnerships and foundations must:
- Enter the names of the Beneficial Owner or Ultimate Beneficial Owner in its register in alphabetical order.
- Inform the Corporate and Business Registration Department (CBRD) of any new issue or transfer that triggers a change in the Beneficial Ownership information within 14 days of entry or alteration made to the register.
- Communicate to the CBRD at any time prior to or upon filing of the next annual return, records of the existing Beneficial Ownership information.
- Keep these information as well as any amendment made to the register for 7 years
Failure to comply with the provisions under this Practice Direction amounts to an offence which is liable to a fine not exceeding MUR 300,000.
How can Temple Consulting Limited help you?
Temple Consulting Limited (TCL) has requisite experience and know-how to provide Financial Institutions with a variety of services to meet their legal requirements associated with Beneficial Owners.
Do you need to verify the UBO or any other party in the structure?
- TCL has reputable screening tools and provide you with intensive Customer Due Diligence (CDD) Reports within 24hrs and Enhanced Due Diligence (EDD) Reports within 48hrs.
Do you need to identify UBO/s of your clients?
- Our team has expertise in File Reviews. We have proven experience with Management Companies, Insurance Companies and Banks.
TCL can provide you with tailor-made packages including ongoing compliance support so that you meet your regulatory requirements.
For more information, please contact us on
(+230) 210 3588
or
[email protected]