Bank of Mauritius (BoM)

Overview

The Bank of Mauritius (BoM) is the central bank of the Republic of Mauritius, established in September 1967 and modelled on the Bank of England with assistance from senior Bank of England officers. The institution serves as the primary monetary authority and financial regulator for Mauritius, a nation that has positioned itself as a leading international financial centre (IFC) in the Eastern and Southern African region.

As of 29 September 2025, Ms. Priscilla Muthoora Thakoor, an IMF veteran and first female central bank governor in Mauritius's history, leads the Bank. The Governor, appointed by the President of the Republic on recommendation of the Prime Minister under section 13 of the Bank of Mauritius Act 2004, chairs both the Board of Directors and the Monetary Policy Committee (established April 2007).

The Bank of Mauritius is a body corporate with perpetual succession, operating with enhanced independence since the 2004 legislative reforms. Its primary objective is to maintain price stability while promoting orderly and balanced economic development, with supporting objectives including regulation of credit and currency in the best interests of economic development, ensuring financial system stability and soundness, and serving as the nation's central bank.

Mauritius has leveraged banking stability, regulatory clarity, and open capital policies to establish itself as a preferred IFC hub, hosting numerous global business companies (GBCs), financial services entities, and international investment vehicles.

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

Licensing Framework

The Bank of Mauritius grants banking licenses under the Banking Act 2004 to entities meeting established fit-and-proper criteria, capital adequacy thresholds, and governance standards. Applicants must demonstrate:

• Adequate capital and liquidity
• Sound management structure with qualified, experienced directors and senior officers
• Business plans consistent with prudential standards
• Compliance with AML/CFT requirements
• Transparent ownership and control structure

Banking licenses grant authority to conduct deposit-taking and lending operations domestically and internationally. Restricted licenses may be issued for specialized activities (e.g., merchant banking, investment banking).

Prudential Requirements

Capital Adequacy Standards

Under Basel III implementation (effective June 2014), banks in Mauritius must maintain:

• Tier 1 Capital to Risk-Weighted Assets: 8% minimum
• Common Equity Tier 1 (CET1) to RWA: 6.5% minimum
• Total Capital Adequacy Ratio: 10% minimum (higher than BCBS recommended 8%)
• Capital Conservation Buffer: 2.5% of CET1 (phased in from 2017 to 2020)

The higher 10% capital adequacy ratio requirement reflects the structure of Mauritius's credit economy, lengthy and costly recovery procedures for non-performing loans, and potential significance of market risk given limited financial market depth and breadth.

Systemically Important Banks (SIBs)

Designated Domestically Systemically Important Banks must maintain additional capital surcharges ranging from 1.0% to 2.5%, effective 2016 onwards.

Macro-Prudential Measures

The BoM employs macro-prudential tools complementing Basel III, including:

• Additional portfolio-specific provisions for high-growth economic sectors
• Higher risk weights for targeted asset classes
• Debt-to-income limits for retail lending
• Loan-to-value (LTV) ratio restrictions on property financing
• Countercyclical provisions to dampen credit cycles

On-Site and Off-Site Supervision

The Banking Supervision Department conducts:

• Prudential Examinations: On-site inspections assessing capital adequacy, asset quality, management competence, earnings, liquidity, and sensitivity to market risk (CAMELS framework)
• Off-Site Monitoring: Analysis of quarterly regulatory returns, financial statements, and suspicious activity patterns
• Stress Testing: Assessment of bank resilience under adverse economic scenarios
• Corrective Action: Issuance of directions requiring capital enhancement, loan loss provision increases, or operational improvements

Legislative Framework

Financial Intelligence and Anti-Money Laundering Act 2002 (FIAMLA)

• Effective 10 June 2002 under Proclamation No. 31 of 2002
• Established the Financial Intelligence Unit (FIU) as the central AML/CFT authority
• Mandates reporting of suspicious transactions by financial institutions and designated professionals
• Enables information exchange with overseas authorities and law enforcement
• Provides for asset freezing and confiscation in money laundering and terrorism financing cases

Financial Intelligence and Anti-Money Laundering Regulations 2018 (FIAMLR)

• Operationalizes FIAMLA through detailed reporting procedures and thresholds
• Establishes currency transaction reporting (CTR) requirements at significant thresholds
• Sets Suspicious Transaction Report (STR) filing deadlines and content standards
• Defines beneficial ownership disclosure requirements
• Specifies record-keeping and document retention obligations

Complementary AML/CFT Legislation

• Asset Recovery Act 2011: Enables civil recovery of proceeds of crime
• United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019: Implements UN targeted financial sanctions
• Amendments to the Banking Act (2020) and other sectoral laws: Enhanced AML/CFT enforcement authority

Financial Intelligence Unit (FIU)

The FIU operates as an independent government agency with mandate to:

• Receive and analyze Suspicious Transaction Reports (STRs) from banks, payment service providers, money remittance operators, and other designated entities
• Disseminate intelligence to law enforcement agencies, the judiciary, and the DPP (Director of Public Prosecutions)
• Exchange information with foreign FIUs and international authorities through bilateral and multilateral channels
• Provide feedback to reporting entities on intelligence outcomes
• Develop typologies and guidance on emerging AML/CFT risks

The FIU maintains secure, confidential databases and operates under strict information security protocols.

Reporting Obligations

Customer Due Diligence (CDD)

• Banks and financial institutions must verify customer identity and beneficial ownership
• Risk-based assessment of transaction patterns and customer profiles
• Enhanced due diligence (EDD) for high-risk customers, PEPs, and sanctioned jurisdictions
• Ongoing transaction monitoring to detect unusual activity

Suspicious Transaction Reporting (STR)

• Financial institutions file STRs when aware of transactions potentially related to money laundering or terrorism financing
• Reports filed within prescribed timeframes (typically 10 business days)
• No disclosure of STR filing to the customer (tipping off prohibition)
• Regulatory reporting forms available from the FIU

Currency Transaction Reporting (CTR)

• Reporting thresholds for large cash transactions (typically above MUR 500,000)
• Cash-intensive businesses, casinos, and dealers required to maintain transaction records
• Reports filed with the FIU for analysis and risk profiling

Designated Non-Financial Businesses and Professions (DNFBPs)

The BoM coordinates with the FIU and FSC to extend AML/CFT requirements to:

• Real estate agents and property developers
• Lawyers, notaries, and accountants (for certain transactions)
• Precious metals and stones dealers
• Casinos and gambling operators
• Trust and company service providers
• High-value goods dealers (art, jewelry, vehicles)

Global Business and Offshore Financial Services

Mauritius as an International Financial Centre (IFC)

Mauritius has established itself as a leading IFC through:

• Stable political and economic governance
• Comprehensive regulatory framework overseen by the Bank of Mauritius and FSC
• Open capital account with no foreign exchange restrictions
• Double taxation treaties with 75+ jurisdictions
• Strategic geographic location serving African, Asian, and Indian Ocean regions
• Professional services infrastructure (accounting, legal, management companies)

Global Business Company (GBC) Regulation

The Financial Services Commission (FSC) regulates Global Business Companies under the Financial Services Act 2007 and Companies Act 2001:

GBC Categories:

• Category 1 Global Business Company (GBC): Primary offshore vehicle for international business activities, corporate investment holding, asset management, financing operations
• Authorized Companies (AC): Newer entity type offering enhanced flexibility for specific high-value activities

GBC Requirements:

• Incorporation in Mauritius under the Companies Act 2001
• Management and control exercised from Mauritius territory
• Administration by a licensed Management Company holding an FSC license
• Substance requirements including office space, staff, and decision-making bodies physically in Mauritius
• Board of directors with majority residing in Mauritius (or meeting enhanced governance criteria)

Regulatory Supervision by FSC:

• Market conduct and anti-money laundering compliance
• Counter-financing of terrorism (CFT) standards
• Corporate governance and beneficial ownership transparency
• International tax compliance (FATCA, CRS reporting)
• Sanctions screening and PEP identification

Tax Residency and Treaty Benefits

GBCs qualifying as Mauritius tax residents benefit from:

• 80% corporate income tax exemption on foreign-source income
• Participation in the Mauritius treaty network for relief from double taxation
• Capital gains tax exemption for certain transactions
• Tax-efficient dividend and interest pass-through structures

The FSC maintains substance documentation files for all GBCs to support tax residency claims and treaty eligibility.

Bank of Mauritius Coordination with FSC

While the FSC regulates GBCs and non-bank financial services, the Bank of Mauritius:

• Maintains oversight of international banking activities by licensed banks incorporated in Mauritius
• Coordinates on AML/CFT compliance for international operations
• Ensures bank capital adequacy calculations include international subsidiaries and exposures
• Oversees foreign exchange transactions related to GBC and offshore fund operations

Digital Banking Licensing

Effective December 2021, the Banking Act was amended to permit digital banks:

• Digital banks conduct banking business exclusively through digital and electronic means
• No physical branch network required
• Licensing framework issued through the BoM Guideline for Digital Banks
• Applicants progress from "restricted digital bank" status to full "wholly digital bank" status over five-year period
• Consumer protection and security standards apply alongside operational resilience requirements

Digital bank licensing supports financial inclusion objectives while managing risks through graduated regulatory oversight.

Regulatory Sandbox Authorisation

Introduced 2018 and formalized in the BoM Guideline on Regulatory Sandbox Authorisation (February 2024):

• Financial institutions (banks, PSPs, insurance companies) may apply for sandbox authorization to test innovative solutions
• Testing period extends up to 12 months with possible extensions
• Applies to fintech, regtech, and other innovative financial technologies
• Controlled environment subject to BoM oversight and safety criteria
• Consumer protection and data security requirements enforced

Sandbox-Tested Solutions Include:

• Crowdfunding and peer-to-peer lending platforms
• Cryptocurrency and digital asset payment solutions
• Initial coin offering (ICO) mechanisms
• Distributed ledger technology applications
• Artificial intelligence and machine learning in risk assessment

Fintech Licensing by FSC and BoM

Payment service providers seeking fintech authorization may pursue:

• PSP License (Bank of Mauritius): For national payment services, digital wallets, money remittance
• PIS License (FSC): For payment intermediary services and card processing
• Regulatory Sandbox: For testing novel technologies before full licensing
• Digital Bank License (BoM): For banks operating exclusively electronically

Financial Inclusion Initiatives

The Bank promotes financial inclusion through:

• Mobile money operator regulation and oversight
• PSP licensing streamlined for remittance and payment operators
• Regulatory support for microfinance institutions
• Cooperation with development partners (IMF, World Bank, AfDB) on fintech capacity building
• Open banking initiatives promoting account access and payment initiation services

Regulatory Powers

Investigation and Examination Authority

The Banking Act 2004 grants the Bank of Mauritius broad powers to:

• Conduct on-site examinations of licensed banks and financial institutions
• Require production of books, records, and documents
• Interview directors, officers, and employees
• Appoint independent auditors or forensic investigators
• Access customer files and transaction records (subject to confidentiality rules)

Corrective Actions and Directions

Before formal enforcement, the Bank may issue:

• Directions: Binding instructions requiring specific actions (capital increases, loan loss provisions, operational changes, management replacements)
• Guidance Letters: Supervisory expectations and compliance timelines
• Consent Orders: Negotiated settlements with remedial conditions
• Corrective Action Plans (CAPs): Agreed timelines for addressing deficiencies

Sanctions and Penalties

The Banking Act 2004 and FIAMLA 2002 authorize the Bank to impose:

Administrative Sanctions:

• Monetary penalties (fines) for regulatory violations
• Public censure and written warnings
• Suspension of specific business lines or activities
• Suspension of dividend distributions and senior management compensation

License Actions:

• License suspension for specified period
• License revocation for material, repeated, or unresolved violations
• Withdrawal of restricted license categories
• Requirement to sell off non-compliant business units

Criminal Referral and Prosecution:

• Referral to the Director of Public Prosecutions for criminal prosecution
• Criminal penalties including fines and imprisonment
• Money laundering, fraud, and conspiracy charges

Grounds for License Revocation

The Bank may revoke a banking license where the licensee:

• Fails to commence business within 12 months of issuance
• Conducts business contrary to or detrimental to depositor or public interests
• Maintains insufficient assets to cover liabilities
• Fails to comply with BoM directives or instructions
• Contravenes provisions of the Banking Act or other applicable laws
• Loses fit-and-proper status for directors or senior management
• Engages in unsafe or unsound practices threatening system stability

Asset Freezing and Confiscation

Under FIAMLA 2002 and the Asset Recovery Act 2011:

• Bank may freeze accounts and suspend transactions on suspicion of money laundering or terrorism financing
• FIU coordinates with law enforcement for civil and criminal asset recovery
• Confiscation orders issued through the courts upon conviction
• BoM holds frozen assets pending legal proceedings

Regulatory Role and Function

Legal Foundation

Primary Legislation

The Bank of Mauritius operates under two principal legislative instruments:

1. Bank of Mauritius Act 2004 (Act 34/2004)

• Proclaimed effective 10 November 2004, repealing the Bank of Mauritius Act 1966
• Establishes the Bank as a body corporate with perpetual succession
• Sets forth the Bank's primary and secondary objectives, powers, and functions
• Enhanced the central bank's independence and autonomy
• Addresses price stability as the primary mandate, aligning with international best practices

2. Banking Act 2004 (Act 35/2004)

• Effective 10 November 2004
• Establishes the comprehensive framework for licensing, regulation, and supervision of banks and deposit-taking institutions
• Applies to commercial banks, non-bank deposit-taking institutions (NBDTIs), and cash dealers
• Provides authority for prudential supervision, capital adequacy requirements, and corrective action

Organizational Structure

The Bank of Mauritius is structured with:

• Governor: Chief executive and chair of the Board of Directors
• Board of Directors: Comprising the Governor, Deputy Governors, and appointed directors
• Monetary Policy Committee: Established 2007, chaired by the Governor, responsible for interest rate decisions
• Banking Supervision Department (BSD): Oversees bank licensing, on-site examinations, and supervisory compliance
• Payment Systems and Market Infrastructure Department: Regulates payment systems and operators
• Financial Intelligence Unit (FIU): AML/CFT supervision and intelligence analysis
• Prudential Regulation Division: Capital adequacy, provisioning, and risk management oversight

The Bank issues binding regulatory guidelines, directives, and instructions to regulated institutions, with enforcement powers to ensure compliance.

Licensing and Authorization Relevance

The Bank of Mauritius (BoM) is a key licensing authority in Mauritius's financial system:

The licensing process typically involves assessment of capital adequacy, fitness and propriety of management, business plan viability, AML/CFT compliance frameworks, and IT systems readiness.

Payments and Money Movement Relevance

National Payment Systems Act 2018

Effective 31 January 2019, the National Payment Systems Act (NPS Act) modernizes Mauritius's payment infrastructure framework:

• Designates the Bank of Mauritius as the sole authority for regulation, oversight, and supervision of national payment systems
• Establishes prudential standards, safety requirements, and operational resilience criteria for payment system operators
• Authorizes the BoM to designate systemically important payment systems
• Requires interoperability protocols to prevent market concentration and participant lock-in
• Enables the BoM to issue binding regulations and technical standards

MauCAS Instant Payment System (IPS)

Launched August 2019, the Mauritius Central Automated Switch (MauCAS) is the national instant payment system:

• Operates 24/7/365 for real-time credit transfers between participating banks and payment service providers
• Transactions clear in seconds with immediate fund availability to recipients
• Operated and owned directly by the Bank of Mauritius
• Administered under the NPS Act and associated BoM regulations
• Supports both consumer-to-consumer and business-to-consumer payments

While MauCAS provides real-time availability to recipients, final inter-bank settlement occurs daily via the MACSS RTGS system.

MACSS Real-Time Gross Settlement System

Established 2000, MACSS handles large-value payments with final settlement:

• Real-time processing for wholesale transactions between financial institutions
• Gross settlement basis (each transaction settled individually)
• Critical infrastructure for monetary policy implementation and financial system stability
• Operated by the Bank of Mauritius

Payment Service Provider (PSP) Licensing

The BoM licenses payment service providers under the NPS Act and Banking Act 2004:

Types of PSP Services Regulated:

• Money transfer and remittance services
• Card payment processing
• E-money issuance (digital wallet operators)
• Payment initiation services (PIS)
• Account information services (AIS)
• Cash dealer operations

Capital Requirements for PSP Licenses:

• General payment services: MUR 5 million minimum
• Money remittance: MUR 3 million minimum
• Payment initiation (PIS): MUR 3 million minimum
• Account information services (AIS): MUR 1 million minimum
• E-money issuance: MUR 3 million (small issuers) or MUR 5 million (large issuers)

Governance Requirements:

• Principal place of business in Mauritius with adequate staffing
• Board of at least three natural person directors (minimum one independent)
• Fit-and-proper assessment for all directors and senior officers
• Clear lines of authority and segregation of duties
• Business continuity and disaster recovery planning

Mobile Banking and Mobile Payment Systems

The Bank issues guidelines on mobile banking and mobile payment systems to enable digital financial service delivery:

• Authorization for banks and PSPs to offer mobile-first banking and payment products
• Consumer protection requirements including fraud prevention, transaction authentication, and dispute resolution
• Data security and encryption standards aligned with international best practices
• Regulatory sandbox provisions for testing innovative mobile payment solutions

Capital Account Liberalization

Mauritius abolished foreign exchange controls in 1994, establishing an open capital account with:

• No restrictions on conversion of Mauritian rupees to foreign currency
• Unrestricted profit repatriation by foreign investors
• Free transfer of dividends, capital gains, and investment proceeds
• No approval requirements for international fund flows (subject to AML/CFT compliance)

This liberalization transformed Mauritius into an attractive investment and financial services jurisdiction, supporting the growth of its IFC sector.

Foreign Exchange Dealer Regulation

The Bank licenses foreign exchange dealers to conduct:

• Spot and forward foreign currency transactions
• Wholesale money market dealings
• Money changing operations
• Money or value transfer services

Dealers must meet capital adequacy, operational, and AML/CFT standards. The Bank oversees FX market integrity, exchange rate stability, and settlement risk management.

International Investment Position Reporting

Banks and financial institutions submit regular reports on foreign asset positions, FX exposures, and international payment flows. The Bank monitors external sector dynamics, capital flows, and reserve adequacy.

Payment Systems Governed or Overseen

The Bank of Mauritius (BoM) operates and/or oversees the national payment and settlement infrastructure of Mauritius. Specific systems include:

[Further detail on specific system names requires verification from official sources]

Relationship to Other Regulators

Regional Memberships and Organizations

Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG)

• Mauritius is a member state of ESAAMLG (21 member countries)
• Conducts mutual evaluation assessments (Mauritius MER completed 2018)
• Implements FATF Recommendations through regional harmonization
• Participates in typology reports and best practice development

Southern African Development Community (SADC)

• Mauritius is a member with commitment to regional financial integration
• Coordinates banking supervision standards through SADC banking regulators forum
• Participates in capacity-building and regulatory convergence initiatives

Common Market for Eastern and Southern Africa (COMESA)

• Mauritius is a COMESA member supporting regional trade and investment flows
• Coordinates trade finance standards and payment system interoperability
• Bank of Mauritius senior officers contribute to COMESA policy development

International Monetary Fund (IMF)

• Mauritius hosts AFRITAC South, the IMF's Technical Assistance Centre serving 13 countries in the Eastern and Southern Africa region
• Mauritius receives IMF technical assistance on banking regulation, payment systems, and AML/CFT frameworks
• Conducts IMF Article IV consultations on macroeconomic and financial stability policies
• Participates in IMF Financial Sector Assessment Programs (FSAPs)

Bilateral Coordination

The Bank of Mauritius maintains relationships with:

• Central banks in neighboring SADC and COMESA jurisdictions
• Banking supervisors in jurisdictions hosting significant Mauritian financial institutions
• Financial intelligence units for international AML/CFT information exchange
• International standard-setting bodies (BIS, BCBS, FATF)

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Official Contact Information

Address:

Sir William Newton Street

Port Louis

Mauritius

Telephone: +230 202 3800

Fax: +230 208 9204

General Email: [email protected]

Communications: [email protected]

Banking Supervision (Licensing): [email protected]

Payment Systems: [email protected]

Official Website and Resources

Primary Website: https://www.bom.mu

Legislation Page: https://www.bom.mu/about-bank/legislations

Banking Supervision Guidelines: https://www.bom.mu/about-the-bank/guidelines

Payment Systems Regulation: https://www.bom.mu/payment-systems/licensing

Governor and Leadership

Current Governor: Ms. Priscilla Muthoora Thakoor (appointed 29 September 2025)

Governor Biography: https://www.bom.mu/about-the-bank/governors

Key Regulatory Documents

• Bank of Mauritius Act 2004
• Banking Act 2004
• National Payment Systems Act 2018
• Guideline on Basel II/III Capital Adequacy
• Guideline on Anti-Money Laundering and Countering Financing of Terrorism
• Guideline for Digital Banks
• Guideline on Regulatory Sandbox Authorisation
• Guideline on Mobile Banking and Mobile Payment Systems

Financial Services Commission (FSC) - Coordination

Contact: https://www.fscmauritius.org

Role: Regulates Global Business Companies, insurance, securities, and non-bank financial services

AML/CFT: https://www.fscmauritius.org/en/aml/amlcft

Financial Intelligence Unit (FIU) - Coordination

Contact: https://www.fiumauritius.org

Role: Central agency for AML/CFT intelligence analysis and dissemination

Suspicious Transaction Reporting: Coordinated with both BoM and FSC

Notes on Naming and Language