BY Adrien Wong AND Nashenta Vuddamalay Zindel
Time to update your KYC documentation for GBC2s
Through the Finance (Miscellaneous Provisions) Act 2018, Mauritius has made substantial legislative reforms to its financial services sector, and more specifically, its global business regime. The aim of these changes is to enhance the country’s competitiveness and transparency as an international financial centre.
This includes the abolition of the previous regimes of the Global Business Category 1 (“GBC1”) and Global Business Category 2 (“GBC2”) companies, to be replaced by the Global Business Company (“GBC”) and the Authorised Company (“AC”), along with changes in the taxation regime of these newly introduced entities.
Grandfathering provisions have also been introduced as part of the Act to ensure a smooth transition into the new framework until 30 June 2021. As such, all GBC1s will have automatically converted into GBCs and be deemed to operate as GBCs post the grandfathering period.
On the other hand, GBC2s had the option to either convert to a GBC or to an AC. This conversion was not automatic, and failure to do so before the deadline resulted in the lapse in the GBC2 licence.
Notwithstanding the lapsing of its licence, a GBC2 entity would still have to:
- comply with such terms and conditions as the Financial Services Commission (“FSC”) may determine;
- remain subject to the obligations of a licensee; and
- comply with the directions of the FSC for the orderly dissolution of its business and the discharge of its liabilities.
We strongly suggest that you request updated licences and relevant documents evidencing the conversion of such GBC2s into a GBC or an AC to ensure that your KYC files are up to date.
Do not hesitate to contact us at ENSafrica (Mauritius) should you require any further information and assistance.
Nashenta Vuddamalay Zindel
ENSafrica | Mauritius | Executive
+230 5492 5074
ENSafrica | Mauritius | Senior Associate
+230 5728 7216