Investing in Mauritius: key elements for your due diligence file (CDD)

Well done on your decision to invest in Mauritius! Renowned for its attractive and stable business environment, Mauritius provides a robust legal framework for foreign enterprises. To ensure a seamless and compliant venture, assembling a thorough Customer Due Diligence (CDD) file is essential. Here is a comprehensive guide compiled by C&S Secretarial Services to help you through this process.

What is a CDD file?

Customer Due Diligence, or CDD, refers to a series of procedures and investigations designed to identify and comprehend a company’s customer. In particular, it focuses on understanding their business operations, identifying beneficial owners, and tracing the source of their funds.

Why is a CDD file important?

CDD is aimed at gathering and analyzing information about potential or existing customers. It allows you to identify and understand their activities, beneficial owners, and the sources of their funds. Here is why CDD is important for your company:

Compliance with anti-money laundering and combating the financing of terrorism (AML/CFT) regulations: These regulations are fundamental for all financial institutions and require a thorough understanding of your customers.
Evaluation of potential risks associated with your customers: CDD allows you to identify factors that could expose your company to risks such as fraud or money laundering.
Protection of your reputation: By conducting effective checks on your customers, you contribute to building the reputation of a serious, standards-compliant company.
Fostering healthy, transparent business relationships: By gaining a deeper understanding of your customers, you can establish strong, long-lasting partnerships.

What information should be in a CDD file?

A comprehensive CDD file should include the following for each customer:

General information:

Full company name ;
Legal structure (SARL, SA, etc.);
Date of creation ;
Registered office and business address;
Registration number;
Main business activity.

Information on managers and owners

Full names ;
Dates of birth ;
Nationalities ;
Addresses;
Functions within the company;
Percentage shareholding.

Information on beneficial owners

Individuals who directly or indirectly control the company;
Ownership of more than 25% of capital or voting rights;
Significant influence on company management.

Other information

Origin and source of presented funds;
Supporting documents (passports, registration certificates, etc.);
Customer risk assessment.

Level of authentication and updating of CDD file

The level of authentication of information required depends on the customer’s risk profile.

Low-risk customers: basic checks may suffice, such as consulting public registers and verifying identity documents.
High-risk customers: more in-depth checks may be required, such as face-to-face interviews and requests for additional documents.

The CDD file should be updated regularly to reflect changes in the customer’s risk profile and corporate structure.

Tips for compiling a CDD file

Adopt a risk-based approach;
Gather information from reliable sources;
Document all stages of the CDD process;
Update your CDD file regularly;
Train your staff in CDD procedures.

C&S Secretarial Services: your partner in Mauritius

C&S Secretarial Services is a leading company in the field of corporate services in Mauritius. We offer expert assistance in creating your CDD file and can help you set up your company seamlessly.

Get in touch with C&S Secretarial Services today to find out more and tap into our expertise to ensure the success of your investment in Mauritius.