Newsletter
Editorial
Dear Readers,
It gives me immense pleasure to address to you in this edition of our monthly e-newsletter, which unfolds the opportunities in the financial services sector and business hub of Mauritius.
The financial services sector has been evolving in a competitive business environment and keeps on gaining momentum as a resilient and prominent sector. As one of the lynchpins of the Mauritian economy, the financial services sector currently contributes to 11.8% of the GDP and employs more than 15,000 professionals. Over the years, the sector has built a strong reputation emanating from its role as a premier International Financial Centre (IFC) for cross-border investments in emerging economies.
The buoyancy of our financial services sector coupled with our sustained economic track-record has positioned the Mauritius IFC in good stead, thereby enhancing investors’ trust, confidence, and stability, which is internationally acclaimed.
Today, the financial services sector is treading on unchartered territory, principally as a result of the seismic pressures of the Covid-19 global pandemic, and of the ever-evolving norms and best practices being introduced by standard-setting multilateral organisations. Mauritius, as a noted jurisdiction, has always been at the forefront of adhering to the international norms, practices, and standards, whilst ensuring that the predictability and certainty of the business environment are preserved.
The aim of the Government is to position Mauritius as a well-regulated and transparent platform for the international community, particularly in and for the region.
As you are aware, in line with its policy stance and international commitments, the Government of Mauritius has adopted a number of reforms, and has made substantial and tangible progress till date, to comply with the recommendations of the Financial Action Task Force (FATF), and the provisions of the European Commission’s Directives on AML-CFT.
It is indeed worth noting that, during the virtual plenary session held from the 21st to the 23rd of October 2020, the FATF has commended Mauritius for the strenuous efforts and progress made to bring our jurisdiction in conformity with international best practices to combat illicit transactions and financing of unlawful activities.
The Government has intensified its efforts and deployed a series of remarkable measures to bring our jurisdiction in conformity with international norms, thus providing investors with added comfort and confidence in using Mauritius as a hub for their investments.
This said, in accordance with the blueprint for the financial services, one of the main points of focus of the Government of Mauritius is to maintain our competitive edge by offering a compelling value proposition.
As we seek to pursue our journey in promoting our IFC, we have renewed our membership of the World Alliance of International Financial Centres (WAIFC), a noted alliance regrouping global financial jurisdictions for the promotion of cooperation among financial centres in order to sustain long-term growth, explore cross-fertilisation opportunities, and facilitate exchanges of best practices. This newsletter also highlights a brief exposé on the WAIFC.
Furthermore, as an innovative IFC, we strive to provide the best possible launchpad by offering sophistication and value addition in terms of a diverse toolbox of financial products and services. In this perspective, the Budget 2020/2021 announced the introduction of a new type of corporate structure, notably the Variable Capital Company (VCC), to complement the existing myriad of fund structures in Mauritius. The Ministry of Financial Services and Good Governance and the Financial Services Commission are currently finalising the regulatory framework for the VCC as a new vehicle for investment.
In addition, cognisant of the burgeoning FinTech space, the Government of Mauritius has been pioneering the development of the right engines to drive our digital transformation. This has heralded the introduction of FinTech activities in Mauritius. Whilst adopting a FinTech strategy that is rooted in sustainable innovation, the Government of Mauritius has recently introduced two new licences and reconstituted the National Regulatory Sandbox Licence Committee. This newsletter also features an article on the regulatory developments in the Mauritian FinTech landscape.
To conclude, we are working closely with our local and international stakeholders, at all levels, to reinforce the repute of our jurisdiction and to upgrade the level of sophistication of the Mauritius IFC. Indeed, the financial services sector is thriving in a challenging environment but the journey to reinvigorate this promising sector continues.
Hemraj Ramnial, CSK
Chairman, Economic Development Board