Financial Crime World

Mauritius Cracks Down on Corporate Fraud and Bribery: A Look at Relevant Laws, Offenses, and Regulatory Bodies

Mauritius, an island nation located in the Indian Ocean, is known for its thriving economy and robust financial sector. However, like many countries, Mauritius is not immune to financial crimes such as corporate fraud and bribery. In this article, we explore the regulatory provisions, legislations, specific offenses, and the authorities involved in investigating and prosecuting such crimes in Mauritius.

Regulatory Provisions and Authorities

Regulatory Provisions

The fight against financial crimes in Mauritius involves several regulatory provisions and authorities:

  • Mauritius Criminal Code: This code outlines criminal offenses including larceny, swindling, and embezzlement, which can be considered corporate fraud if committed in a business context.
  • Companies Act: Activities committed with the intent to defraud a company’s creditors or any other person fall under this act.
  • Prevention of Corruption Act 2002: This act specifically targets corruption and bribery.
  • Financial Intelligence and Anti-Money Laundering Act 2002: This act regulates financial transactions to detect and prevent money laundering and terrorist financing.
  • Civil Code: Offenses such as dol (trick) and enrichissement sans cause (fraudulent enrichment) also fall under this code.

Authorities

The following authorities have powers of prosecution, investigation, and enforcement:

  • Mauritius Police Force: They investigate criminal offenses.
  • Director of Public Prosecutions (DPP): The DPP prosecutes criminal offenses, including fraud.
  • Financial Services Commission (FSC) of Mauritius: The FSC regulates financial services providers.
  • Mauritius Revenue Authority: The revenue authority administers and collects taxes.
  • Independent Commission against Corruption (ICAC): The ICAC investigates serious cases of corruption.
  • Financial Intelligence Unit of Mauritius (FIU): The FIU combats money laundering and terrorism financing.

Offenses

Corporate Fraud

Types of fraud that can be considered corporate fraud in Mauritius include:

  • Criminal Code: Offenses under this code such as larceny, swindling, and embezzlement.
  • Companies Act: Activities committed with the intent to defraud a company’s creditors or any other person.
  • Civil Code: Offenses such as dol (trick) and enrichissement sans cause (fraudulent enrichment).

Bribery

Specific offenses related to bribery and corruption in Mauritius include:

  • Domestic public officials: Bribery, soliciting a bribe, attempting to commit bribery, and aiding and abetting bribery.
  • Foreign public officials: The same offenses as for domestic public officials, but the offer or promise is made to a foreign public official, either directly or through an intermediary.

Prosecution and Sanctions

Prosecution

  • Decision-making process: The DPP determines if there is sufficient evidence to prosecute a case.
  • Disposal methods and conditions: Alternative methods of disposal include cautions, warnings, and restorative justice. Conditions may include the defendant’s cooperation, acceptance of responsibility, and implementation of measures to prevent reoccurrence.

Sanctions

  • Penalties: Sanctions include fines, imprisonment, disqualification from acting as a company director, and reputational damage.

Safeguards

Appeal and Review

  • Appeal process: Convicted individuals can appeal the conviction and sentence at the Supreme Court of Mauritius.
  • Judicial review: The DPP’s decision-making process can also be challenged through judicial review.

Safeguards are in place to protect the rights of the accused and ensure fair investigations. These safeguards include respect for due process, the right to legal representation, and access to appeal mechanisms.