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Mauritius-Based Financial Holding Company Complies with Central Bank’s Prudential Requirements
Port Louis, Mauritius - A leading financial holding company incorporated in Mauritius has ensured compliance with the prudential requirements set by the central bank for banks and non-bank deposit-taking institutions.
Compliance Measures
According to sources, the company has implemented various measures to meet the guidelines, instructions, and directives specified by the central bank. This includes ensuring that its subsidiary or joint venture, which is a bank or non-bank deposit-taking institution, complies with the prudential requirements.
Significance of Compliance
The company’s compliance with the central bank’s regulations is seen as a significant step in maintaining stability and soundness in the financial sector of Mauritius.
Conflict Resolution
In case of any conflict or inconsistency between provisions of Part XI of the Financial Institutions Act and other enactments, except sections 110A and 110B of the Insurance Act, the provisions of Part XI shall prevail. This provision aims to ensure that the central bank’s regulations take precedence in cases where there is a discrepancy.
Restriction on Use of Word “Bank”
The Financial Institutions Act also imposes restrictions on the use of the word “bank” or its derivatives by institutions other than banks. The act prohibits any person, except for a bank or specialized financial institution, from using the word “bank” in their name or title, or making any representation that they are carrying on banking business.
However, the central bank has the power to authorize a holding company of a bank to use the word “bank” or its derivatives under certain conditions. This provision aims to facilitate the restructuring of a bank’s business or the transfer of its undertaking.
Licensing Requirements for Banking Business
The act also sets out requirements for licensing banking business in Mauritius. Any person wishing to engage in banking, Islamic banking, digital banking, or private banking business must obtain a banking licence from the central bank. The application process involves providing various documents and information, including:
- A copy of the company’s certificate of incorporation
- Constitution
- Financial statements
The central bank has the power to specify the medium and form of the application as well as any additional information required. The act also provides for penalties for non-compliance with licensing requirements.
Conclusion
In conclusion, the Mauritius-based financial holding company’s compliance with the central bank’s prudential requirements is a significant development in maintaining stability and soundness in the financial sector of Mauritius. The restrictions on the use of the word “bank” and the licensing requirements for banking business aim to ensure that only reputable institutions engage in banking activities in the country.