Legislation
The banking sector in Mauritius is governed primarily by the Bank of Mauritius Act 2004, the Banking Act 2004 and Regulations made thereunder. In 2018, pursuant to the National Payment Systems Act 2018, the Bank was also vested with the power to oversee and supervise the national payment systems and payment systems. The Bank may also undertake the issue and management of loans publicly issued in Mauritius by Government under the Public Debt Management Act.
The Bank of Mauritius Act 2004 establishes the Bank of Mauritius, the central bank of the Republic of Mauritius, as a body corporate with perpetual succession and sets out, inter alia, its primary and other objects, powers and functions. The Bank of Mauritius fulfils its functions independently as mandated by the Bank of Mauritius Act 2004. The Bank of Mauritius (Compoundable Offences) Regulations 2008 has been made under the Bank of Mauritius Act 2004.
The Banking Act 2004 sets out the framework for the licensing, regulation and supervision of banks and other financial institutions such as non-bank deposit taking institutions and cash dealers. The Banking (Processing and Licence Fees) Regulations 2015 were issued under the Banking Act 2004 in January 2016 and prescribe the processing and licence fees currently applicable to prospective and existing licensees.
The National Payment Systems Act 2018 provides for the regulation, overseeing and supervision of the national payment systems and payment systems being operated in Mauritius primarily for the purpose of ensuring their safe, secure, efficient and effective operation and accessibility to the public.
With a view to promoting the stability and soundness of the financial system of Mauritius, the Mauritius Deposit Insurance Scheme Act provides for the establishment of a Mauritius Deposit Insurance Scheme to (a) protect insured depositors of a bank or non-bank deposit taking institution by providing insurance against the loss of insured deposits; and (b) contribute to the stability of the financial system in Mauritius by ensuring that depositors have prompt access to their insured deposits, in the event of failure by a bank or non-bank deposit taking institution.
The Bank of Mauritius is also the AML/CFT Supervisor for institutions operating in the banking sector and ensures that these institutions comply with the banking laws which include, the Convention for the Suppression of Financing of Terrorism Act, the Financial Intelligence and Anti-Money Laundering Act, the Prevention of Terrorism Act, the Prevention of Terrorism (International Obligations) Act and the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019 as well as regulations and guidelines made thereunder.
The Financial Intelligence and Anti-Money Laundering Act 2002 (“the FIAMLA”) and the Financial Intelligence and Anti-Money Laundering Regulations 2018 prescribe, inter alia, the customer due diligence and transaction monitoring standards to be implemented by financial institutions so as to combat money laundering and terrorism financing while the Prevention of Terrorism Act 2002 and the regulations made thereunder provide for measures to combat terrorism in general. The Convention for the Suppression of Financing of Terrorism Act 2003 provides for the International Convention for the Suppression of the Financing of Terrorism to have force of law in Mauritius. In addition, the Prevention of Terrorism (International Obligations) Act enables Mauritius to adhere to various international counter-terrorism conventions.
Furthermore, to enhance customer protection in the financial services sector, the Ombudsperson for Financial Services Act 2018 provides for the establishment of the Office of the Ombudsperson for Financial Services to receive and deal with complaints from consumers of financial services against financial institutions.