Restriction of Property (Non-Citizens) Act

On 29 April 2021, the Non-Citizens (Property Restriction) (Amendment) bill was swiftly enacted, in order to promptly close a material loophole, whereby Foundations could potentially be misused to circumvent the principle of the Restriction of Property (Non-Citizens) Act (RPNCA). While the amendment serves a commendable objective, it brought a number of stringent unintended consequences for the Banking Sector, particularly around the process to issue secured credit in cases where a real estate asset has any amount of foreign beneficial ownership. The MBA has been working with lawyers, Business Mauritius and professionals from the Real Estate sector on a number of proposals, to address these unintended consequences, while ensuring that the anti-abuse objective of the amendment is achieved.