Angst Continues In Mauritius Over FSC's Regulatory Grip

by Lorys Charalambous, Tax-News.com, Cyprus

10 July 2003

Attempts by the Mauritius' Financial Services Commission to impose stringent 'kyc' regulations on the local financial services sector have been attacked as overly bureaucratic by companies in the offshore sector of the economy. Now local newspaper the Financial News has carried a Special Report in which leading members of the offshore community were asked to comment on how they saw the state of play.

Mauritius International Trust Company General Manager James Bette Bennett complained about the rapidity with which the FSC changed the rules, which he said was partly due to the international banks' nervousness. He saw a danger to the international perception of Mauritius if things did not settle down.

Mr Udhay Gujadhur of De Chazal du Mee welcomed the FSC's tightening up, but also feared for the jurisdiction's international reputation as a result of bad publicity.

Craig McKenzie, Chief Executive of Investec, complained about lack of consultation between the FSC and the offshore sector; while accepting that the Government had good intentions, he thought that the youth of the FSC had caused it to behave without sufficient knowledge.

Other contributors had similar thoughts; but a continued flow of new registrations in the offshore sector during 2002 and 2003 (running at more than 200 a month) suggest that Mauritius is certainly not suffering from bad perceptions on the part of incoming business. There are now more than 20,000 registered offshore companies in the jurisdiction.

Recommended