Financial Crime World

Mauritius Sets Sights on Scaling Local Capital Market

======================================================

Port Louis, Mauritius - The island nation is embarking on a series of initiatives aimed at scaling its local capital market to better serve the domestic economy and attract more international volume, particularly in foreign exchange (FX).

Accelerating the Transition to a Cash-Lite Society

The first initiative aims to reduce the cash payment limitation from MRU 500,000, encouraging the adoption of digital payments. This move is expected to accelerate the transition to a cash-lite society, providing valuable insights into customer spending and saving habits while mitigating fraudulent activity.

  • A financial literacy campaign will be launched to educate the population on the benefits of digital finance, reduce fraud, and promote more sophisticated financial products.
  • The campaign will target specific segments, including older generations and women, using a mix of communication channels.

Attracting International Business

The second set of initiatives is focused on evolving Mauritius’ offering to attract more international business. These include:

  • A regional treasury centre incentive scheme, modeled after Singapore’s Finance and Treasury Centre (FTC) and Hong Kong’s Corporate Treasury Centre (CTC), to establish a fully-fledged regional treasury scheme.
  • A cross-bank digital trade finance platform to facilitate international trade transactions.
  • A new private banking business model to offer bespoke services to high-net-worth individuals.
  • A banking sector ESG strategy to promote sustainable practices in the financial sector.
  • The adoption of virtual assets and distributed ledger technology to stay ahead of the curve.

These initiatives are expected to position Mauritius as a key player in the region, attracting more multinational corporations (MNCs) to set up regional treasury headquarters. This, in turn, will drive growth in demand for treasury solutions, supporting the broader market ecosystem and further developing the banking sector’s product offering.

Conclusion

The future of banking in Mauritius is bright, with a range of initiatives aimed at scaling its local capital market, reducing dependence on non-digital payments, and attracting more international business. By leveraging its unique strengths, including its advanced digital financial infrastructure and favorable tax regime, Mauritius is poised to become a major player in the regional banking and finance landscape.

Exhibits

  • Exhibit 4: Cash payment limits in various countries
  • Exhibit 5: Example of fully established treasury schemes