MAURITIUS Law and Practice Contributed by: Professor Michael Katz, Laksha Juddoo Prayag, Anne-Sophie Lenette and Ayesha Rambajun, ENS
work has also been recalibrated, allowing companies to retain up to 50% of CSR contributions for their own initiatives, offering greater flexibility for internally driven environmental and social projects. Mauritius’ financial services industry is entering a transformative phase with sustainability and respon - sible investment practices taking centre stage. The FSC has issued Disclosure and Reporting Guide - lines for ESG Funds, effective 24 March 2025, apply - ing to Closed-End Funds and Collective Investment Schemes that incorporate ESG factors as a primary investment strategy. These guidelines aim to strength - en market credibility and regulatory consistency, aligning investment entities with the UN Sustainable Development Goals or other recognised sustainability frameworks. From a social perspective, CA requirements on board gender diversity remain in force: public companies must appoint at least one female director, and public listed companies must ensure minimum 25% female board representation. The Code’s emphasis on non- discriminatory employment practices and transparent, merit-based recruitment remains the primary frame - work for social governance disclosures. Mauritius does not have a standalone AI board over - sight statute. Under the CA, directors’ duties of care, diligence and good faith apply equally to AI deploy - ments where material to strategy, risk or customer outcomes. The Code assigns boards responsibility for risk and IT governance, which encompasses AI, and recom - mends Risk Committees where significant risks exist. The principal exception is the financial services sec - tor: under the Financial Services (Robotic and Artificial Intelligence Enabled Advisory Services) Rules 2021, FSC licensees providing AI-enabled advisory servic - es must maintain a board of at least three directors (including an independent Mauritius-resident director) with explicit statutory responsibility for algorithm over - 8. Artificial Intelligence 8.1 Board Oversight of AI
sight, risk management frameworks, cyber risk and business continuity. 8.2 AI Use-Related Risks AI-related risks are governed through existing frame - works: the Data Protection Act 2017 (automated pro - cessing and profiling), the Cybersecurity and Cyber - crime Act 2021 (cyber risk governance), and the Code (board oversight of risk and IT). In September 2025, the FSC issued FinTech Series Guidance Notes No 4 on responsible AI use in financial services, cover - ing fairness, transparency, accountability and human oversight which are non-binding but material to super - visory expectations. At the national level, Mauritius launched its National AI Strategy and FAIR Guide - lines in April 2026 with UNDP support, establishing an ethical governance framework grounded in Fair - ness, Accountability, Inclusiveness and Responsibil - ity. In practice, AI strategy and risk sit with the board, controls and assurance with the Audit Committee, technology and cyber risk with the Risk Committee, and day-to-day execution with senior management. 8.3 Liability Exposures Arising From AI Use Board and officer liability for AI-related failures arises under several existing regimes. Inadequate AI over - sight may constitute breach of directors’ duties under the CA, enforceable by the company or through share - holder action where IT and AI are significant to the company. The Data Protection Act 2017 creates liability for unlawful automated decision-making, transparency failures and security breaches, enforceable by the Data Protection Commissioner through the court. In the non-bank financial services sector, failures in AI governance or customer disclosure obligations may attract FSC enforcement action and downstream civil liability; and for listed companies, material AI-related incidents may trigger capital markets disclosure obli - gations under the SEM Listing Rules. 8.4 Key Disclosure Requirements for AI Use Mauritius has no AI-specific corporate disclosure requirements. Listed companies must report on com - pliance with the Code and internal audit arrangements in their annual reports, within which AI governance
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