MAURITIUS Law and Practice Contributed by: Valerie Bisasur, Jean-Vincent Dacruz and Shane Mungur, BLC Robert & Associates
priority basis, and decide on the individual’s fit- and-proper-person status. Should the external auditors become aware of information that points to non-compliance or potential non-compliance by a person with the fit-and-proper-person requirements of the Guideline, they should forthwith advise the board of directors of the matter and provide all relevant information. 4.3 Remuneration Requirements Section 18 of Banking Act states that no finan - cial institution should employ any person whose remuneration is linked to the income of the finan - cial institution or to the level of activities on cus - tomers’ accounts. Except for those financial institutions that have been granted a dispensation from the BoM, eve - ry financial institution must appoint a Nomination and Remuneration Committee, consisting of a majority of non-executive directors. Their role will consist of: • recommending to the board candidates for board positions, including the chair of the board and chairs of the board committees; • recommending criteria for the selection of board members and criteria for the evaluation of their performance; • preparing, for the approval of the board, the remuneration and compensation package for directors, senior managers and other key personnel, taking into account the soundness of risk taking and risk outcomes as well as any relevant information available on industry norms; • recommending to the board an incentive package, as necessary, to enhance staff performance, while ensuring that incentives
embedded within remuneration structures do not incentivise staff to take excessive risk; • recommending nominees for board commit - tees; and • commenting on the contribution of individual directors to the achievement of corporate objectives as well as on the regularity of their attendance at the board and committee meetings. Financial institutions are encouraged to consider the use of contractual provisions to allow them to reclaim incentive components of remunera - tion from executive directors and key manage - ment personnel in exceptional circumstances of misstatement of financial results or of miscon - duct resulting in financial loss to the financial institution. With a view towards promoting transparency to shareholders, depositors and other market participants, the board of directors of a finan - cial institution is recommended to disclose the remuneration/fees of directors, senior execu - tives and key employees; the disclosure should be timely, accurate, clear and easily understand - able to inform all stakeholders effectively.
5. AML/KYC 5.1 AML and CFT Requirements
Mauritius is a founding member of the East - ern and Southern Africa Anti-Money Launder - ing Group, which is an associate member of the Financial Action Task Force (FATF). Mauri - tius has also ratified and acceded to numerous international conventions, protocols and treaties to express its commitment towards the interna - tional community to combat money laundering and terrorist financing (ML/TF).
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