9 Duty to identify and verify beneficial ownership information

(1) Every legal person or legal arrangement, as the case may be, shall identify and verify the identity of its beneficial owners and registrable legal persons. (Amended by Act 38 of 2022)
(1a) Every legal person or legal arrangement shall periodically review and verify its beneficial owners at such intervals as may be prescribed by the Minister. (Inserted by Act 38 of 2022)
(2) Subject to subsection (1), the legal person or the legal arrangement, as the case may be, shall give written notice to a person whom it knows or has reasonable grounds to believe that the person is a beneficial owner or a registrable legal person, requiring the addressee—
(a) to state whether or not the person is a beneficial owner or a registrable legal person, in relation to the legal person or legal arrangement; and
(b) if so, to provide, confirm or correct the registrable particulars relating to the person. (Amended by Act 38 of 2022)
(2a) A legal person or legal arrangement is not required to take steps or give notice under subsection (2) with respect to a beneficial owner, if the legal person or legal arrangement has already been informed in writing of the person’s status as a beneficial owner in relation to it, and has been supplied with all the registrable particulars. (Inserted by Act 38 of 2022)
(3) A legal person or legal arrangement may give written notice to any person, if the legal person or legal arrangement knows or has reasonable grounds to believe that the person knows the identity of a beneficial owner or a registrable legal person or knows the identity of someone likely to have that knowledge. (Amended by Act 38 of 2022)
(4) A notice under subsection (3) may require the addressee—
(a) to state whether or not the addressee knows the identity of a beneficial owner, or a registrable legal person or knows the identity of any person likely to have that knowledge; and (Amended by Act 38 of 2022)
(b) if so, to provide the particulars of such persons within the addressee’s knowledge.
(5) A notice issued under subsection (2) or subsection (3) shall specify that the information sought from the addressee be provided within 30 days from the date of issue of the notice.
(6) Within 30 days of a person receiving a notice given by the legal person or legal arrangement under subsection (5), he or she shall comply with such notice by providing in writing, to the legal person or legal arrangement, the information requested in the notice. (Inserted by Act 38 of 2022)
(7) Where a person fails to comply with subsection (6), the legal person or the legal arrangement shall after giving the legal or beneficial owner an opportunity of being heard and unless satisfied with any explanation provided, take action and furnish to the legal or beneficial owner, in writing, the decision of the legal person or the legal arrangement, including but not limited to—
(a) the placing of such restrictions as it thinks fit on the rights attached to the legal owner’s interest in the legal person or the legal arrangement, as the case may be, including—
(i) any right to transfer or assign shares or other interest;
(ii) any voting rights;
(iii) any right to acquire further shares in addition to shares already held;
(iv) any right to payment due in respect of the legal owner’s interest, whether in respect of capital or otherwise;
(v) in the case of a limited partnership with legal personality, any right to take part in the management of the partnership;
(vi) in the case of a foundation, any benefit to which the legal owner becomes entitled under the foundation in accordance with the foundation instrument or the foundation rules; or
(b) the cancellation of the legal owner’s interest in the legal person or the legal arrangement, as the case may be. (Inserted by Act 38 of 2022)
(8) Any action taken under subsection (7) shall be appropriate and dissuasive so as to compel compliance, and a record of the action taken in that regard shall be maintained. (Inserted by Act 38 of 2022)
(9) Where—
(a) a person fails to comply with subsection (6); or
(b) an action is taken under subsection (7), the legal person or legal arrangement shall inform the Competent Authority in writing, through its resident agent, of the failure or action taken, as the case may be, within 21 days of the failure or having taken the action. (Inserted by Act 38 of 2022)
(10) Any person aggrieved by a decision taken pursuant to subsection (7), may appeal to the Supreme Court to set aside any restriction or cancellation. (Inserted by Act 38 of 2022)
(11) Upon receipt of an appeal under subsection (10), the Court may make such order as it thinks fit to require any person who fails to comply with a notice issued under subsection (2) or subsection (3) to—
(a) provide the information sought; or
(b) confirm or correct the registrable particulars sought. (Inserted by Act 38 of 2022)
(12) A person who contravenes subsection (1), (2), (7), (8) or (9) shall be liable to a penalty not exceeding SCR150,000 for each contravention. (Inserted by Act 38 of 2022)
(13) A person who contravenes subsection (6) commits an offence and is liable on conviction to imprisonment for a term not exceeding 1 year or to a fine not exceeding SCR200,000 or to both. (Inserted by Act 38 of 2022)