Hon. Hector Appuhamy

¶ 01 Hon. Deputy Chair, thank you for the opportunity.

¶ 02 We are debating amendments to the Companies Act No. 07 of 2007—introduced last month and then referred to the Sectoral Oversight Committee which I chair. We discussed these, point by point, with the Legal Draftsman’s Department, the relevant Ministry, and the Registrar of Companies. We dealt with money laundering, terrorism financing, and how entities are registered and then misused by those behind them for laundering and illicit operations. The IMF also required these changes to eliminate such structures. I believe 22 items were amended.

¶ 03 Crucially, all persons with ownership interests must henceforth be registered under the Registrar of Companies—beneficial ownership must be disclosed; no one can hide behind fronts. Next, how funds flow, how shares are apportioned, and dividend distribution mechanisms are all covered. Post-registration, there is far greater access to information than before.

¶ 04 However, when requiring disclosures, we must also consider protective measures. Alongside company regulation and curbing ML/TF, the State must ensure a framework to protect genuine industrialists, entrepreneurs, and company operators. Today, there is no clear policy on safeguarding businesses and their operators. People spend lakhs and even crores on gold, but cannot safely wear it in public; it is hidden at home or kept in banks due to security concerns. Even here in Parliament, many women like to wear jewellery but fear to do so or to travel safely home. This is the state of security in the country, and we must change it.