MAURITIUS Law and Practice Contributed by: Valerie Bisasur, Jean-Vincent Dacruz and Shane Mungur, BLC Robert & Associates
authorisation to conduct banking business or to have any legitimate expectation of a positive final determination of the application. The in- principle approval will automatically lapse if the applicant does not satisfy the terms and condi -
to the level (directly or indirectly) of a “significant interest” must seek the BoM’s prior approval. A “significant interest” means: • owning, directly or indirectly, alone or togeth - er with a related party, or otherwise having a beneficial interest amounting to, 10% or more of the capital or of the voting rights of a financial institution; • having the ability, directly or indirectly, alone or together with a related party, or having the power, to appoint 20% or more of the mem - bers of the board of a financial institution; or • directly or indirectly exercising a significant influence over the management of a financial institution as the BoM may determine. Prospective acquirers of significant interest over a bank must give 30 days’ prior notice to the BoM, including (among other things): • the acquirer’s name, personal history, busi - ness background and experience and that of any other person by whom or on whose behalf the acquisition is to be made –this must also be accompanied with a certificate of good conduct issued by a competent authority (or an affidavit duly sworn stating any convictions for crimes and any past or present involvement in a managerial function in a body corporate subject to insolvency pro - ceedings or having declared personal bank - ruptcy, in respect of each of the persons); • the financial position of that person and any other person by whom or on whose behalf the acquisition is to be made; • the terms and conditions of the proposed acquisition; • the identity, source and amount of the funds or other consideration used or to be used in making the acquisition; and
tions attached to such approval. Activities and Services Covered
A bank licensed under the Banking Act may con - duct banking business as described above. It may also carry out the following services: • investment and wealth management services;
• custody services; • foreign exchange; • credit and loans; • payment processing; • cash management; and • merchant services.
However, Section 30 of the Banking Act sets out restrictions on investments and non-banking operations for banks. Specifically, it limits the types of investments banks can make. It also prohibits them from engaging in non-banking operations (except in the course of the satisfac - tion of debts due to it by default of a debtor) that could pose a conflict of interest or distract from its primary functions. Non-banking operations include trading on its own account or on the basis of a commission, in the wholesale or retail trade (such as the import or export trade), or in any business other than the business for which the bank is licensed under the Banking Act. 3. Changes in Control 3.1 Requirements for Acquiring or Increasing Control Over a Bank Under Section 31 of the Banking Act, anyone seeking to acquire or increase control in a bank
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