Le GM répond à l’article incendiaire de FIRST POST


Office of the Secretary to Cabinet
And Head of the Civil Service

The Editor-in-Chief
10 April 2015

Dear Sir,
We are writing to you in reference to the recent article of Mr Pranay Gupte entitled
“Mauritius cracks whip on Muslims, not a (role model of democracy’ as PM Modi said after all” which appeared in FIRSTPOST online on Sunday 05th April 2015. The Government of Mauritius is deeply concerned by the content of the article which is largely inaccurate and portrays a very negative image of our democratic system as well as that of our financial centre. The Government of Mauritius strongly condemns the unfounded allegations made in this article as well as the reference made of Mauritius as ‘the global capital of money laundering’ .

We wish to inform you that Mauritius has put in place a robust and proven regulatory system which is fully dedicated to combating money laundering or illicit transactions. To this end, in 2002, Government introduced the Financial Intelligence and Anti Money Laundering Act/cFIAMLA) in view of tracking money laundering and combating terrorism financing. Ottier supporting legislations that are in place include the Prevention of Corruption Act 2001 and the Prevention of Terrorism Act 2002. The Financial Intelligence Unit was equally established under the FIAMLA in 2002.

In addition, Mauritius also adheres to international best practices with respect to money laundering through its compliance to the Financial Action Task Force (FATF). We would like to draw your attention that the GDP of Mauritius amounts to approximately USD 12.66 billion for 2014. The interpretation made in your article stating that ‘of this amount (its GDP), the country (Mauritius) sends USD 10 billion to India alone’ is completely erroneous. First, as per the latest statistical review of the Foreign Investment Promotion Board (FIPB) of India, Mauritius accounted for USD 7.66 billion towards Indian New FDI in 2014. Second, it should be emphasized that cross border investments using the Mauritius Financial Centre are not directly captured in the GDP calculation of the country. It would therefore be completely erroneous to say that USD 10 billion out of the USD 12.66 billion of our GDP is going to India.

You may wish to note that Financial Services accounted for only 10.3% of our GDP in
2014, with an estimated contribution of 4% from global business/cross border transactions. It should equally be noted that the Mauritian economy is set on very strong pillars and the country has a broad, resilient, dynamic and fully diversified economy. Mauritius is definitely not a rock-island offshore centre but one of substance in which financial services make positive contributions to the national economy.

While Mauritius has been the preferred financial centre of choice for cross border investment in many emerging countries including India, due care have always been exercised in ensuring that no illicit money or transactions go through our financial centre. In this respect, the Financial Services Commission (FSC) was created in 2001 and operates as one of the most reliable and stringent regulatory bodies. Mauritius has equally demonstrated exemplary collaboration initiatives with Indian Authorities to prevent round tripping transactions. In an effort to further enhance transparency and transfer of effective information, Mauritius has also walked the extra mile by becoming the first country to have a permanent seat of the Indian Tax Office outside India.

Banking institutions operating in the country are required to comply fully with the set of norms, standards and guidelines as stipulated by the Bank of Mauritius, including the Capital Adequacy Ratio. It is crucial for banks to respect and operate within the established norms, in the best interest of its clients and to safeguard the reputation of the Mauritius banking system, failing which the Bank of Mauritius takes necessary action.
Mauritius also remains a democratic model of reference. Government has always promoted a proactive relation with the Private Sector which has a crucial role to play in our economic development. Dialogues at various levels are encouraged in policy decision making. At no point in time, has any private sector operator been unduly restrained in the conduct of its lawful business activities, unless on grounds of non-compliance with set norms and regulations and in the best interest of the public.

In the case of the Bramer Bank, its license was revoked by the regulator, the Bank of
Mauritius, on the grounds clearly spelt out in the Banking Act as the regulator was satisfied that the business of the bank was being carried out in a manner that posed serious systemicrisks to the domestic financial system.

The Financial Services Commission, the regulator of the insurance industry, in strict conformity with the Insurance Act, placed the BAI Co Ltd under the control of a Conservator to safeguard the interest of thousands of insurance policy holders. It is wholly untrue to allege that the regulators’ acts or those of the Government of Mauritius were motivated by ethnic or other extraneous considerations.

The Government of Mauritius reserves its rights to seek appropriate remedy before the appropriate authorities for the prejudice caused to the image of Mauritius and its regulatory bodies.

S. Seebaluck, G.O.S.K
Secretary to Cabinet
And Head of the Civil Service

Posted by on Apr 10 2015. Filed under Actualités, Economie, En Direct, Featured, Politique. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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