National Budget 2022/2023 - Financial Services, Global Business and Regulatory

The financial services industry in Mauritius has demonstrated strong resilience in the aftermath of the global financial crisis and has even achieved a growth rate of 4.2% last year

 

Furthermore, Mauritius has successfully been removed from the FATF, EU and UK blacklists. The Government has resolved to build on this momentum.

 

In this Budget, the Government aims to ensure that Mauritius remains amongst the most business-friendly countries in the world for businesses to invest, train, recruit and innovate.

 

To this end, the principal measures are as follows:

Financial Services

• The removal of Global Headquarters Administration, Global Shared Services and Global Treasury Activities from the scope of financial services under the FSA;
• The setting up of a Settlement Committee to assess the early resolution of disciplinary matters pertaining to licensees; and
• The revamping of the Financial Services Commission’s framework to enable Re-Insurance companies to set up operations in Mauritius.

 

Facilitating business

• The removal of regulatory costs to business incorporations so as to keep Mauritius as one of the most business-friendly jurisdictions;
• The Bank of Mauritius will ensure that a bank account can be opened within 1 week, be it for an individual or a business; and
• The introduction of a Business Regulatory Reform Bill as an apex legislation on business facilitation.

 

Banking

• The Bank of Mauritius together with the Bank of China will launch a regional Renminbi Clearing Centre this year;
• The Banking Act will be amended to modify the criteria for in-principle approval in connection with the application for a banking license;
• The Financial institution or service provider must comply with confidentiality requirements as required by the Bank of Mauritius;
• The BOM Act will be amended to allow the opening of accounts and the acceptance of deposits for issuing digital currency; and
• The BOM Act will be amended to increase the functionalities of the Central KYC system and the Central Accounts Registration

 

Work and residence permits

• Holders of Residence Permits will be given the opportunity, upon applications, to acquire a residential property of a minimum of USD 350 000 outside the existing schemes, subject to a 10 percent contribution made to the Solidarity Fund;
• The requirement for HNWI and families will be reviewed to a minimum portfolio of US$ 5 million per management family office;
• A Work Permit Committee,chaired by the Prime Minister, will be set up to expedite the issuance of work permits; and
• Non-citizens will be eligible to apply for residency when acquiring residential property under ‘fractional ownership’ provided that their individual investment exceeds US$375,000.

 

Companies Act

Companies Act will be amended to:

• Remove temporary time extensions and reinstate pre COVID-19 provisions for registered companies to call annual meeting of shareholders, prepare financial statements and file financial statements with the Registrar of Companies (“ROC”);
• Reinstate Section 162 of Companies Act, relating to the duty of directors on insolvency;
• Provide for the disclosure of particulars of interest, donations made by the subsidiaries, details of present and past directors, fees payable to auditors and details of major transactions with respect to subsidiaries in annual reports;
• Prevent companies from being simultaneously registered in both Mauritius and in another jurisdiction; and
• Allow the ROC to remove a company from the Register of Companies where there is no other reason for the company to continue its existence.

 

Combatting financial crimes

• FIAMLA will be amended to include combatting of proliferation financing; and
• The Financial Crime Commission will be set-up to ensure an effective coordination in the fight against financial crimes.