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On 8 September, the United Nations Development Programme (UNDP) released the Human Development Report 2021-2022. Titled Uncertain Times, Unsettled Lives: Shaping our Future in a Transforming World, this edition focuses on the reasons for an unprecedented back-to-back decline in the global Human Development Index (HDI) value.

At the 63^rd position globally, and with a score of 0.8, Mauritius is the only country which has been ranked as having a ‘very high human development’ in Africa.

The Report takes into account: three basic dimensions of human development, namely:

a. A long and healthy life;

b. Knowledge;

c. A decent standard of living

Access the Human Development Report here to read the full analysis.

The Fraser Institute released the Economic Freedom of the World (EFW) 2022 Annual Report on 8 September 2022. Through its rating of 165 jurisdictions, the EFW index aims to provide an overview of how much effort a country’s institutions dedicate to introducing policies in favour of economic freedom.

For the year 2022, the report ranked Mauritius at a noteworthy, improved 9 ^th position globally (2019: 11^th) which places the country among the top nations worldwide having policies and institutions conducive to economic freedom.

The Fraser Institute is an independent, non-partisan research and educational organisation which provides an in-depth analysis of each country’s degree of economic freedom across five key areas, namely:

a. Size of Government;

b. Legal System and Property Rights;

c. Sound Money;

d. Freedom to Trade Internationally; and

e. Regulation of Credit, Labour and Business.

To access the full report, click here

We are pleased to announce that Intercontinental Trust (Seychelles) Limited (ITSL) has received its Seychelles Foundation Services Provider Licence.

As a legal entity separate from its founder, a Seychelles Foundation is governed by the Foundations Act 2009 and is usually used for asset protection, inheritance planning, wealth management purposes, general asset holding, and charitable purposes.

Should you wish to have more information on the main features of the Seychelles Foundation and its implication, as well as better understand how we can help you, please liaise with your usual contact person at ITL/ITSL or send us an email at info@intercontinentaltrust.com

On 21 October 2022, Fitch Ratings – award-winning credit rating agency – has upgraded Seychelles’ Long-Term Foreign-Currency Issuer Default Rating (LTFC IDR) to ‘BB-’from ‘B+’ with a stable outlook.

This upgrade is attributed to multiple factors conducive to steadfast and sustainable economic growth, such as, amongst others, declining debt levels and a recovering tourism industry. Driven primarily by the latter as well as strong exports levels, Fitch further forecasts real GDP at 6.6% in 2022 and on average 3.7% in 2023-2024 (2021: 10.6%).

Tourist arrivals having already reached 87% of corresponding 2019 levels in January-August 2022, and with this sector being the largest contributor to VAT receipts, Seychelles is set to experience stable fiscal performance through increased tax revenues.

Read the full commentary from Fitch Ratings here

On 12 September 2022, Seychelles officially launched its Tourism Satellite Account (TSA) and became the first country to implement this project on the African continent.

TSAs are known to provide accurate measure of the impact of tourism on an economy and have been widely used across destinations around the world to understand what tourism contributes to the gross domestic product (GDP).

With key indications such as tourism contribution to GDP, Tourism Direct Gross Value Added and tourism consumption by inbound, domestic and outbound visitors, this statistics system will aim to better track Seychelles’ tourism industry’s performance, especially at a time where the country is in its recovery phase from the pandemic.

On 9 June 2022, the Financial Services Commission (FSC) communicated several updates brought to its Competency Standards. Aligned with international best practices, the Competency Standards – initially published in 2014 – aims at providing the minimum technical competencies required by licensees, its officers and employees engaged in the provision of advice, intermediaries services as well as involved in management and control function.

The recent amendments brought to the Competency Standards updates the competency requirements for the appointment of a Money Laundering Reporting Officer (MLRO) and/or a Deputy MLRO, and sets out the requirements for a Compliance Officer (together referred to as “Officers”). The salient competency requirements for the Officers are as follows:

• The Officers shall hold relevant experience of at least 5 years in the industry;
• Alternately, the FSC may consider relevant experience of at least 3 years in the industry, subject to the submission of relevant and valid AML/CFT professional certification*;
• Notwithstanding the above, for the purpose of Section 4.6 of the Competency Standards, the Officers shall demonstrate a minimum of 10 years of relevant experience in the industry

They must achieve a minimum of 10 hours as structured CPD every year.

These amendments have taken effect on 1 June 2022 and are applicable for all new MLROs, Deputy MLROs and Compliance Officers.

Access the updated Competency Standards here

*Valid certifications: the Financial Services Institute (FSI), the Certified Anti-Money Laundering Specialist (ACAMS), the International Compliance Association (ICA) or any other certifications meeting the global AML/CFT requirement standards may be considered by the FSC

First announced in April 2021, the introduction of the Variable Capital Company (VCC) aimed to deliver on the increasing demands for innovation in the fund market space. With the need to ensure that there is a legislative framework – in compliance with the requirements of the Anti-Money Laundering/Combatting the Financing of Terrorism – regulating this structure, the Variable Capital Companies Act 2022 (the “Act”) was enacted in April 2022.

In case you missed our newsletter, which covers the main technicalities and licensing fees for Mauritius VCCs, as well as provides a comparison between the Protected Cell Companies (PCCs) and VCCs, you can access it here

On 4 July 2022, the Financial Services Commission – the institution responsible for regulating and supervising VCCs – issued a FAQ in an effort to bring clarity on this structure and its governing framework. Read the FAQ here

In an effort to widen the service offerings of Mauritius’ financial services sector, the Government has introduced the Virtual Asset and Initial Token Offering Services Act 2021 (hereinafter referred to as the “Act”) on 7 February 2021.

The Act lays the groundwork for the regulation and supervision of business activities of Virtual Assets Services Providers (VASPs) and Issuers of Initial Token Offerings (IITOs) in Mauritius.

ITL released a newsletter on 23 March 2022, which elaborates on the salient features from the Act. The publication also covers the main AML/CFT obligations for VASPs and IITOs – initially published in February 2022 and later updated in July 2022 – in this new line of business.

In case you missed the newsletter, you can access it here

Subsequently, the Financial Services Commission (FSC) shared the fee schedule as well as the licensing criteria for VASPs and IITOs, and released a communique to inform the public that applications for the relevant licence(s)/registration(s) under the Act may henceforth be submitted through the FSC One Platform.

Access the full communique from the FSC for the prescribed fees and licensing criteria here

The Economic Development Board (Real Estate Development Scheme) Regulations 2022 (the “Regulations”) was enacted on 12 April 2022 in an effort to encourage the sale of remaining Integrated Resort Scheme (IRS)/ Real Estate Scheme (RES) properties by reinstating the following provisions governing IRS/RES:

• the process for the acquisition or resale of residential property in an IRS/RES project;
• the persons/entities eligible to acquire residential property under the IRS/RES;
• a minimum selling price of USD 500,000 in respect of residential property in an IRS; and
• payment of a social contribution by an IRS company for an additional residential property developed in an existing project.

Excluding the percentage of serviced land allowed to be sold in an IRS project – for which the threshold of land area planned for construction of residential properties is being increased from 25 percent to 33 percent – the other main conditions relating to the implementation of an IRS/RES project are also being reinstated.

Click here to access the Regulations which give more details on the above provisions.

On 13 January 2022, the Southern African Development Community (SADC) Protocol on Trade in Services, previously signed by the SADC Heads of States and Governments, including Mauritius, on 18 August 2012 in Maputo, came into force 30 days after two-thirds of the Member States having deposited of instruments of ratification.

The coming into operation of this Protocol entails that Mauritius now has market access in 10 SADC Member States on a transparent, legally secure and predictable basis in the following sectors:

• Financial Services;
• Communications;
• Tourism;
• Transport;
• Construction; and
• Energy-related services