Glossary of Mauritian Corporate Compliance Terms

This Mauritius corporate compliance glossary collects the vocabulary a company officer meets after incorporation. If you searched for the MLRO meaning or the UBO meaning, you will find both below, next to the payroll, audit and record-keeping terms that sit around them.

Definitions are deliberately short. Whether a rule applies to your company depends on its licence, activities and shareholders, so use the entries as a map and confirm the detail with an adviser. For the year as a whole, see the compliance calendar.

A

Advance Payment System (APS)

A mechanism under which a company pays part of its income tax during the year rather than in one sum after the return. It is administered by the Mauritius Revenue Authority (MRA).

AGM (annual general meeting)

The yearly meeting at which shareholders receive the accounts and deal with matters such as the appointment of directors and the auditor. A private company may sometimes decide the same items by written resolution instead.

AML/CFT

Anti-money laundering and countering the financing of terrorism: the body of laws, controls and reporting duties that stop the financial system being used for crime. The core Mauritian statute is the FIAMLA. See AML/CFT compliance for how it applies to companies.

Annual return

A periodic filing made to the Registrar of Companies confirming the company's basic details, such as its registered office, directors and shareholders. Missing it can lead to penalties or a strike-off process.

Auditor

An independent professional who examines the financial statements and gives an opinion on whether they present a true and fair view. Under the FIAMLA, auditors are themselves bound to report suspicious transactions.

B

Beneficial owner

The natural person who ultimately owns or controls a company, or on whose behalf a transaction is carried out, through shares, voting rights, an ownership interest or control by other means. The former wording of section 91 of the Companies Act 2001 used 25% of voting rights as its reference point. The current definition is explained in who counts as a beneficial owner.

Beneficial Ownership Register

Two things bear this name. The company keeps its own separate record of its beneficial owners and any nominee. The Registrar of Companies also keeps a register, which the Companies Act makes available to competent authorities and prescribed public authorities and does not describe as public. See the beneficial ownership register guide.

Board minutes

The written record of what a board decided at a meeting and why. Good minutes show who attended, any declared conflicts, and the decisions taken.

Board resolution

A formal decision of the directors, passed at a meeting or in writing. It is the usual evidence that an act of the company was properly authorised.

Bookkeeping

The continuous recording of transactions that allows the company to explain its financial position at any time. It is the base on which the financial statements, tax return and audit are built.

C

Capital allowances

The tax relief that replaces accounting depreciation for equipment, vehicles and similar assets. The rates and categories are set by tax law and not by the company's accounts.

CDD (customer due diligence)

The checks a reporting person performs to identify and verify a customer and any beneficial owner, and to understand the relationship. Under section 17C of the FIAMLA, CDD applies when an account or business relationship is opened, to an occasional customer from a transaction of Rs 500 000 or the foreign-currency equivalent (or the prescribed amount), alone or in linked transactions, and to any domestic or cross-border wire transfer.

Companies Act 2001

The main statute governing the formation, administration and winding up of companies in Mauritius, including directors' duties, registers and the beneficial ownership rules. The Registrar of Companies administers it.

Company Service Provider

A business that helps clients incorporate, administer or manage legal entities. For FIAMLA purposes it is a regulated profession, with the Registrar of Companies as its regulatory body, and acting as formation agent for a legal person is one of the listed activities. In this site's usage, the licensed version is an FSC-licensed corporate service provider (Management Licence).

Conflict of interest

A situation in which a director's personal interest may clash with the company's. It must be disclosed to the board and recorded.

Controller (data protection)

The person or entity that decides why and how personal data is processed. Under the Data Protection Act 2017, controllers register with the Data Protection Commissioner, and the registration certificate is valid for 3 years (section 16(3)).

CRS (Common Reporting Standard)

The international framework under which Mauritian financial institutions report accounts held by non-residents to the MRA each year, for exchange with treaty partners. It is a matter for financial institutions rather than for ordinary operating companies.

CSG (Contribution Sociale Généralisée)

A social contribution paid by employers and employees through payroll. See CSG contributions for the mechanics.

CSR contribution

The corporate social responsibility charge that qualifying companies must apply to their profits and direct towards approved programmes or the tax authority. Whether and how much applies depends on the company's results.

D

Data Protection Act 2017

The Mauritian statute on personal data, in force since 15 January 2018 by Proclamation No. 3 of 2018. A controller must notify the Commissioner of a personal data breach without undue delay and, where feasible, within 72 hours of becoming aware of it (section 25).

Director

A person appointed to manage the business and affairs of the company, who owes statutory duties to it. Directors may be executive or non-executive and must meet the fit and proper standards that apply to the company.

Directors' duties

The legal obligations of directors, including acting in good faith in the company's interest, exercising care and skill, and avoiding undeclared conflicts. They are set out chiefly in the Companies Act 2001.

Dividend

A distribution of profit to shareholders. Directors must be satisfied that the company can meet its debts as they fall due before authorising one, which is the purpose of the solvency test.

Dormant company

A company that carries on no business and has no significant accounting transactions. It still has filings, registers and officers to maintain.

E

Enhanced due diligence (EDD)

Additional checks applied where risk is higher, for example for politically exposed persons or dealings linked to a high-risk country. It typically adds scrutiny of the source of funds and ongoing monitoring.

Executive director

A director who also takes part in the day-to-day running of the business, as opposed to a non-executive director, who oversees without managing.

F

FATCA

The United States reporting regime for accounts held by US persons. Mauritius signed a competent authority agreement with the United States, the local framework is Government Notice 135 of 2014, and the MRA handles registration and reporting through its e-services portals.

FATF

The Financial Action Task Force, the international standard-setter for AML/CFT. Under section 17H of the FIAMLA, the Minister may designate as high-risk a jurisdiction the FATF identifies as having strategic deficiencies, which triggers enhanced due diligence.

FIAMLA

The Financial Intelligence and Anti-Money Laundering Act, Act 6/2002, in force since 10 June 2002. The consolidated version published by the FIU in 2026 includes Act No. 3 of 2026, which amended Part IV with effect from 18 April 2026, notably on suspicious transaction reporting and risk assessment.

Financial statements

The annual accounts: statement of financial position, income statement and notes. They are prepared under an accepted framework such as IFRS for SMEs and may or may not require an audit.

Financial year end

The date on which a company's accounting period closes. Many filing deadlines run from it.

FIU (Financial Intelligence Unit)

The national body established by section 9 of the FIAMLA, with its functions listed in section 10. It receives suspicious transaction reports and gives general feedback to reporting persons and supervisors on their reporting duties.

Fit and proper

The test of honesty, competence and financial soundness applied to directors and officers of regulated or licensed businesses.

FSC (Financial Services Commission)

The integrated regulator of non-bank financial services and of global business in Mauritius. It licenses corporate service providers and supervises licensed entities.

G

goAML

The online system used to register with the FIU and submit reports such as suspicious transaction reports.

H

HRDC levy

A training levy paid by employers to the Human Resource Development Council. Whether a given employer owes it, and on what base, should be checked against the current rules.

I

IFRS for SMEs

A simplified accounting framework designed for small and medium-sized entities that do not have public accountability. Many Mauritian private companies use it.

K

KYC (know your customer)

The identification and verification process behind CDD. For corporate clients it covers the entity, its ownership and control chain, and the people acting for it. A KYC checklist for corporate clients lists the usual evidence.

M

Management accounts

Internal accounts prepared during the year to track performance and cash. They are not statutory filings but help directors meet their duty to monitor solvency.

MLRO (Money Laundering Reporting Officer)

MLRO meaning in practice: the senior person in a reporting organisation who receives internal suspicions, decides whether to report them to the FIU and acts as the contact point with it. See the MLRO guide for appointment and responsibilities.

MRA (Mauritius Revenue Authority)

The tax authority. It administers income tax, PAYE, VAT and the exchange of tax information, and runs the online filing portals.

N

Nominee

A person who holds shares or acts on behalf of another. Under the Companies Act, a company must identify any nominee as well as the beneficial owner and record both in its separate beneficial ownership record.

Non-executive director

A director who sits on the board without a management role, usually contributing oversight and independent judgement.

NSF (National Savings Fund)

A mandatory contribution paid through payroll by employers and employees, reported in monthly returns. See NSF contributions for the filing side.

O

Ordinary resolution

A decision of shareholders passed by a simple majority. It covers routine matters, as opposed to those that need a special resolution.

P

PAYE (Pay As You Earn)

The system under which an employer deducts income tax from employees' pay and pays it to the MRA. It is part of every payroll cycle.

Payslip

The statement given to an employee showing pay, deductions and contributions. The law prescribes minimum content.

PEP (politically exposed person)

Someone who holds, or has held, a prominent public function, together with their family members and close associates. PEPs call for enhanced due diligence because of their exposure to corruption risk.

Personal data breach

A security incident leading to accidental or unlawful loss, disclosure or alteration of personal data. It triggers a notification duty to the Data Protection Commissioner.

R

Register of charges

The company's record of security interests such as mortgages and floating charges granted over its assets. It must be kept up to date.

Registrar of Companies

The public officer who incorporates and registers companies, keeps the company file and the Beneficial Ownership Register, and acts as regulatory body for company service providers under the FIAMLA.

Reporting person

A business or profession bound by the FIAMLA to carry out CDD and report suspicious transactions. The schedule covers company service providers, accountants, law firms, lawyers, notaries, estate agents, casinos and dealers in jewellery and precious metals, among others.

Resident director

A director who is ordinarily resident in Mauritius, appointed to satisfy residency requirements for certain companies. The role carries the same legal duties and liability as any other directorship. See resident director for the rules and choices.

Risk assessment

The exercise by which each reporting person identifies, assesses and understands its money laundering, terrorist financing and proliferation financing risks, looking at customers, geography, products, services, transactions and delivery channels. It sets the level of mitigation (section 17, as amended by Act 3 of 2026).

S

Sanctions screening

Checking customers, owners and counterparties against sanctions lists before and during a relationship, so that no prohibited dealing takes place.

Solvency test

The assessment directors must make before certain distributions and other transactions: whether the company can pay its debts as they fall due and whether its assets cover its liabilities.

Source of funds / source of wealth

Source of funds is where the money in a particular transaction comes from. Source of wealth is how a person accumulated their overall assets. Both are asked for in higher-risk cases.

Special resolution

A shareholder decision passed by a higher majority than an ordinary resolution, required for significant changes such as amending the constitution.

Statutory registers

The records a company must keep by law, such as the registers of shareholders, directors and charges, and the beneficial ownership record. See statutory registers for the full list.

STR (suspicious transaction report)

The report a reporting person or auditor must make to the FIU as soon as they become aware of a suspicion and no later than 5 working days after it arises (section 14 FIAMLA). Failing to do so is an offence carrying a fine up to Rs 1 million and imprisonment up to 5 years. See suspicious transaction reports.

T

Tax clearance certificate

A document issued by the MRA confirming that a taxpayer's filings and payments are up to date. It is often requested for tenders, licences and some transactions.

Tax loss

A deficit in taxable income that can be carried forward and set against later profits, within the conditions and limits set by the Income Tax Act.

Tipping-off

Telling a third party that a suspicious transaction report has been or is being filed. It is an offence under the FIAMLA, punishable by a fine up to Rs 5 million and imprisonment up to 10 years, with an exception for group compliance exchanges under confidentiality safeguards.

U

UBO (ultimate beneficial owner)

UBO meaning: the natural person at the end of the ownership or control chain, as opposed to the intermediate companies or trusts in between. Mauritian law speaks of the "beneficial owner"; UBO is the common shorthand. Every company must identify and record its UBO, and keep the information accurate and available to competent authorities without delay on request.

W

Withholding tax

Tax a payer deducts at source from certain payments, for example to non-residents, and pays over to the MRA. The categories and rates depend on the type of payment and any applicable treaty.

Written resolution

A decision taken by signing a document instead of meeting. It allows directors or shareholders to decide without convening a meeting, subject to the company's constitution and the Companies Act.