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Already in its 33^rd edition, published on 23 March 2023, the Global Financial Centres Index (GFCI 33) iterates its position as a reference point for policy and investment decision-makers through its critical and comprehensive evaluation of future competitiveness for 120 financial centres globally.

Mauritius has improved its position in the global ranking by 11 places (from 92^nd to 81^st), owing to the considerable efforts made by the Financial Services Commission (FSC) in upgrading the service offering of Mauritius’ financial services landscape. As a contributor to the GFCI 33 report, the FSC took the opportunity to showcase the attractiveness of the sector, especially at a time where there are increasing prospects for virtual assets related activities through the introduction of the Virtual Assets Initial Token Offering Services Act in 2022.

The GFCI emanates from a collaboration between China Development Institute (CDI) in Shenzhen and Z/Yen Partners in London and is updated and published every March and September. For this edition, 30 financial centres were taken into consideration.

Access the full report here

Henley & Partners, the global leader in residence and citizenship by investment, has collaborated with New World Wealth on the latest 2023 Africa Wealth Report, published on 28 March 2023. Focused on bring to the forefront expert analysis of private wealth in Africa, as well as management, investment and mobility trends, the Report provides an overview of the bourgeoning investment migration sector across the continent.

Mauritius has taken the sixth place overall and has gained the nickname of ‘Millionaire Magnet’ owing to growth projections estimated at 75% over the next decade (to 2032), essentially supported by multiple pull factors such as, amongst others:

1. a fast-growing financial services sector;

2. an attractive tax regime;

3. prime real estate and migration opportunities;

4. a safe environment; and

5. a politically stable economy

To access the full Report, click here

On 20 March 2023, the landmark World Happiness Report, an annual publication which maps out the level of happiness of citizens across 137 countries, was released and this particular edition aimed at showcasing, through life evaluations and emotions, how in the past years global happiness has been influenced by crisis situations.

Despite its global score having declined to 5.9 since last year’s report, Mauritius retains the top spot in Africa, and consequently remains the happiest country on the continent, owing to its stable and flourishing economy.

By using data from the Gallup World Poll, the Report took into consideration the following independent predictors to analyse the level of happiness:

1. GDP per capita

2. Social support

3. Healthy life expectancy at birth

4. Freedom to make life choices

5. Generosity

6. Perceptions of corruption

You can access the full report here

Mauritius is the 26^th freest country in the World and boasts being the top and only nation in the Sub-Saharan African region to enjoy a ‘Mostly Free’ economic freedom status, as reported in the latest Index of Economic Freedom (the “Index”).

The Index, released by the Heritage Foundation in early March 2023, aims at bringing to light fine-tuned analysis of over two decades of the advancement in economic freedom and opportunity, and covers 184 countries.

Mauritius owes its commendable score of 70.6 to its ongoing strategy in promoting structural reforms and open-market policies which encourage diversity in its service offering as well as a sound and transparent legal and regulatory framework.

The study calculates the level of economic freedom through the following broad pillars, further sub-divided into twelve categories of freedom:
• Rule of Law (property rights, government integrity, judicial effectiveness)

• Government Size (government spending, tax burden, fiscal health)

• Regulatory Efficiency (business freedom, labour freedom, monetary freedom)

• Open Markets (trade freedom, investment freedom, financial freedom)

Access the full Report here

Following the 45^th Meeting of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) Task Force of Senior Officials in late March 2023, Seychelles has been upgraded on the following five recommendations set by the Financial Action Task Force (FATF):
• Terrorist Financing offence (5);

• Higher-risk countries (19);

• Transparency and Beneficial Ownership of Legal Persons (25);

• Regulation and Supervision of Designated Non-Financial Business or Professions (28); and

• Guidance and Feedback (34)

As such, Seychelles’ laudable efforts in addressing the shortcomings of it’s AML/CFT legislative framework, as highlighted in the Second Mutual Evaluation Report (2018) as well as mitigating future risks has led the country to being either Compliant or Largely Compliant on 34 of the 40 FATF Recommendations.
You can access more information on the re-rating here

On 2 February 2023, the Financial Services Commission (FSC) released a communique to inform the public and relevant stakeholders of new application procedures with regard to Collective Investment Scheme (CIS) and Closed-End Fund (CEF) [hereinafter collectively referred to as “Funds”].

The new processes will aim to increase the efficiency of the application process for Funds and are applicable with immediate effect. The FSC is further looking to implement these procedures for other types of licences in the future.

Going forward, Management Companies (MCs)/applicants will need to provide confirmations and undertakings – via the FSC One Platform – in the approved form together with:

• A signed declaration by two resident directors of the MCs/applicants; and

• A legal certificate confirming that the constitutive documents and the offer document accompanying the application are in compliance with the Securities Act, the Securities (Collective Investment Schemes and Closed-End Funds) Regulations 2008, other relevant Acts, any guidelines issued by the FSC and any other applicable Laws.

The FSC further notifies MCs/applicants that penalties against them and the two resident directors are applicable in the event of the false declaration by the latter.

Incomplete applications which are deficient will not be entertained by the FSC unless the shortcomings have been addressed within 15 days.

Furthermore, within 6 months of the issuance of authorisation, the FSC will conduct an on-site inspection.

Access the full communique from the FSC here for more information.

On 16 January 2023, the Mauritian Government has announced the agreement of the Terms of Reference that establishes the principles, methodology and scope for the negotiation of a Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates and Mauritius.

The CEPA which will aim to enhance bilateral economic and trade relations between the two countries would include, inter alia:

• Chapters on Trade in Goods;

• Rules of Origin;

• Customs Administration and Trade Facilitation;

• Trade Remedies;

• Investment Facilitation;

• Trade in Services;

• Transparency in Government Procurement;

• Intellectual Property Right;

• Innovation and Technology Transfer;

• Economic Cooperation;

• Competition; and

• Dispute Settlement.

As the relationship between these two countries continue to strengthen, we will endeavour to provide you with more information on the introduction of the CEPA.

The Financial Services Commission (FSC) issued an FAQ on Moneylending Licence on 8 February 2023 with a view to addressing pertinent queries on this type of activity.

The FAQ highlights the following conditions under which a Global Business Company (‘GBC’) should apply for a Moneylending Licence:

1. In the instance where the GBC is engaged or intends to engage in the business of moneylending in Mauritius, it should apply for a Moneylending Licence;

2. In the instance where the GBC is solely engaged or intends to engage in the business of moneylending outside Mauritius, a Moneylending Licence would not be required.

With regard to a GBC lending money to another GBC, the transaction shall be deemed as conducting business outside Mauritius.

The FAQ further provides for the following:

Consult the official communique here for more information on the application process.

Owing to its long-term vision of fostering an environment that favours innovation and digitalisation, the Financial Services Commission (FSC) has launched an Artificial Intelligence (AI) Powered Due Diligence Platform on 2 February 2023.

This project, in partnership with the Mauritius Research and Innovation Council (MRIC), encourages stakeholders within the local financial services landscape to revamp their operations and onboard technology-based solutions to address existing gaps. The Platform will aim to automate the steps of the due diligence process and make the data collection task more efficient, therefore enhancing the credibility and accuracy of this regulatory activity.

In line with international standards, the AI Platform puts our already robust International Financial Centre (IFC) on the path to digitalisation and enhanced security, especially when it comes to the regulatory frameworks of its broad service offerings.

Read the full communique from the FSC here

The Bank of Mauritius (BoM) has introduced a new Monetary Policy Framework (MPF) in an effort to address the shortcomings in the former one as well as create a framework that is aligned with shifting economic and financial conditions. In the same wavelength, the Key Rate – which is replacing the Key Repo Rate – will rely on the interest rate channel to manoeuvre economic uncertainties through the implementation of strategic monetary policy instruments, such as:

• a well-defined and flexible inflation target;

• prominent role for inflation forecasts as intermediate targets;

• review of the operational target;

• greater clarity on the foreign exchange and money markets nexus; and

• appropriate institutional design for different aspects of the monetary policy decision-making process.

This new MPF will seek to provide a more conducive environment for the BoM to have better control on inflation and mitigate fluctuations in price – an occurrence which remains their main concern.

The BoM has currently set the Key Rate at 4.50%. The new Monetary Policy framework came into force on 16 January 2023 and supersedes the former one set up in December 2006.

Access the official communique from the BoM here for more information on the implications of this new framework.