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REPUBLIC OF MAURITIUS
PRIME MINISTER'S OFFICE
Office of the Secretary to Cabinet
and
Head of the Civil Service
The Editor-in-Chief
FIRSTPOST
Mumbai
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
USD 12.66 billion for 2014. The interpretation made in your
amount (its GDP), the country (Mauritius) sends USD 10
completely erroneous. First, as per the latest statistical review
Promotion Board (FIPB) ofIndia, Mauritius accounted for USD
amounts to approximately
article stating that 'of this
billion to India alone' is
of the Foreign Investment
7.66 billion towards Indian
New Treasury Building, Intendance Street, Port Louis
Fax: 208 6642
Tel.: 201 2850
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 ofreference. Government has always promoted
a proactive relafion 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 ~e 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 systemic
risks to the domestic financial system.
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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.
IUvlttUl~
---
S. Seebaluck, G.O.S.K
Secretary to Cabinet
and
Head of the Civil Service
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