AML/CFT

Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT)

The aim of the AML/CFT Unit of the  Corporate and Business Registration Department is to:

  • Promote compliance with AML/CFT obligations among CSPs and other regulated entities.
  • Prevent the misuse of legal persons and arrangements for money laundering, terrorist financing, or proliferation financing.
  • Strengthen transparency of ownership and control structures through accurate and timely beneficial ownership (BO) information.
  • Contribute to the national AML/CFT framework in line with Financial Action Task Force (FATF) Recommendations.
  • Collaborate with other competent authorities to ensure a coordinated and risk-based approach to AML/CFT supervision.

Company Service Providers (CSP)

Persons providing any of the undermentioned services need to apply for registration with the Registrar of Companies under Section 164 or Section 167A of the Companies Act.

  • Forming or registering companies or other legal persons.
  • Acting as (or arranging for another person to act as) a director, secretary, or partner.
  • Providing a registered office, business address, or correspondence address.
  • Acting as (or arranging for another person to act as) a nominee shareholder.

The following documents will be required when submitting an application to act as CSP:

Under Section 167A of the Companies Act

  • Copy of NID
  • Evidence of qualification
  • Evidence of knowledge claimed
  • Evidence of experience
  • Copy of Passport for Non-Resident
  • Copy of Occupation permit
  • Certificate of Incorporation / Registration
  • Copy of Business Registration Card
  • A recent Certificate of Current Standing
  • Profile of the Board (where applicable)
  • Prescribed business activities
 

Application form is available on: Downloadable Forms

Section 164 of the Companies Act:

  • Letter of application
  • CV of director/member
  • Evidence of qualification for director/member (S165 of COA)
  • Copy of BRN with activities as “Secretarial Support Services”
AML/CFT Supervision

The Registrar of Companies has an obligation to effectively supervise and monitor reporting persons (CSPs) using a risk-based approach.

Under Section 19H of the Financial Intelligence and the Anti-Money Laundering Act 2002, the ROC has been given the powers to effectively discharge its function. These include:

(a) issue guidelines for the purposes of combating money laundering activities and the financing of terrorism and proliferation activities;

(b) give directions to a member falling under its purview to ensure compliance with this Act and the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019, and any regulations made and guidelines issued under those Acts;

(c) require a member falling under its purview to submit a report on corrective measures it is taking to ensure compliance with this Act and the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019, and any regulations made and guidelines issued under those Acts, at such intervals as may be required by the regulatory body;

(d) with respect to a member falling under its purview, apply, subject to subsection (2), any or all of the following administrative sanctions :

(i) issue a private warning;

(ii)  issue a public censure;

(iii) impose such administrative penalty as may be prescribed;

(iv) ban, where the regulatory body has licensed or authorised the member to conduct his business or profession, from conducting his profession or business for a period not exceeding 5 years;

(v) revoke or cancel a licence, an approval or an authorisation, as the case may be.

CSPs are required to comply with all AML/CFT related legislations such as :

  • Financial Intelligence and Anti Money Laundering Act 2002
  • Financial Intelligence and Anti Money Laundering Regulations 2018
  • United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019
Transparency of Beneficial Ownership (BO) is a cornerstone of the CBRD’s AML/CFT framework. The CBRD maintains the Central Beneficial Ownership Register, which contains information on the natural persons who ultimately own or control legal entities. Objectives of the BO Register:
  • Enhance corporate transparency and accountability.
  • Prevent and detect misuse of corporate vehicles for illicit purposes.
  • Facilitate timely access to accurate and verified BO information by competent authorities and law enforcement agencies.
Obligations of Legal Persons:
  • Maintain and file accurate, up-to-date, and adequate BO and basic information with the CBRD.
  • Update information and other related details to BO within the prescribed timeframe when changes occur.
  • Maintaining and updating basic information details when changes occur.
  • Keeping of all records for a period of at least 7 years even when an entity is removed from the Register (S190 of CA01)
  • Ensure compliance with relevant legal requirements under the Companies Act 2001, Limited Partnership Act 2011, Limited Liability Partnership Act 2016, Foundation Act 2012 and the FIAMLA Regulations.

The CBRD organises monthly outreach sessions where relevant stakeholders are invited to participate.

This is achieved through:

  • Training and awareness sessions for CSPs, directors, company secretaries and its stakeholders in general
  • Dissemination of guidance notes, FAQs, and circulars on AML/CFT compliance and beneficial ownership obligations.
  • Participation in national and international AML/CFT initiatives to promote best practices.

The CBRD  has issued guidelines and practice directions on its website –  Practice Directions

Through these efforts, the CBRD encourages a culture of proactive compliance and ethical corporate conduct.

“The Financial Action Task Force (FATF) defines a Non-Profit Organisation (NPO) as a legal person, arrangement, or organization that primarily engages in raising or disbursing funds for charitable, religious, cultural, educational, social, or fraternal purposes, or for the “good works” of other types. This focus is specifically aimed at preventing the abuse of the sector for terrorist financing.” 

Companies Limited by Guarantee and Charitable Foundations have been recognised as NPOs that meet FATF definition in the last NPO Risk Assessment in the year 2020. The CBRD conducts regular outreach sessions and monitoring activities for these NPOs to mitigate the risks on Terrorism Financing

  • FAQs
  • Contact Us: Email Address: roc-amlcft@govmu.org, Phone No.: 202 0615