MAURITIUS Law and Practice Contributed by: Valerie Bisasur, Jean-Vincent Dacruz and Shane Mungur, BLC Robert & Associates
one of the licensed banks or non-bank deposit- taking institutions fails. The scheme is administered and managed by Mauritius Deposit Insurance Corporation Ltd, known as the agency. The agency’s powers and functions include (among others): • the control and management of funds depos - ited into the deposit insurance fund; • collecting premium contributions; and • making payments of compensation in respect of insured deposits or otherwise provid - ing depositors with access to their insured deposits. The depositor protection scheme extends to any individual who is a resident of Mauritius and who is eligible to compensation for an insured deposit in the event of failure of a deposit-tak - ing institution. All deposit-taking institutions are members of the depositor protection scheme. Both local and foreign currency deposits are eli - gible, up to a certain level, to protection under the scheme. They must, however, fall under the following categories: • deposits in savings accounts both in Mauri - tian currency and in foreign currencies; • deposits in a current account both in Mauri - tian currency and in foreign currencies; • time deposits both in Mauritian currency and in foreign currencies; and • such other deposits or amounts as the board of the agency may determine. Deposits not granted protection under the scheme include: • where there is a contractual set-off agree - ment between a deposit-taking institution and
a depositor, any deposit up to the amount of any debt owed by a depositor to the deposit- taking institution if such debt is matured or past due, or the maximum amount that would otherwise be eligible for compensation (whichever is lower); • any deposit of a related party; • any deposit that is frozen by a court order; and • such other deposits or amounts as the board may determine. The coverage limit per insured depositor is MUR300,000 or such other amount as may be prescribed. If sufficient funds are recovered following the sale of the failing deposit-taking institution’s assets, the insured depositor may recover deposits of more than the coverage lim - ited/insured amount. Payments of insured deposits in foreign currency are made in Mauritian currency and the rate of exchange is determined by the agency. The scheme is primarily funded by the premi - um contributions paid by banks and non-bank deposit-taking institutions. These financial insti - tutions are required to pay into the fund a pre - mium of 20 cents per MUR100 on their insurable deposits or such premium amount as may be prescribed. It also derives funding from interests or other income through investments made from the fund. Any investment made from the fund must fall into the scheme’s investment policy, which is approved by the agency’s board. The investment policy strictly prohibits investments in deposit-taking institutions and high-risk instruments.
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