Amar Bheenick

Jersey: New law on pursuing Third World debt through Jersey’s courts

2012-02-01T23:51:00.000Z

Chief Minister, Senator Ian Gorst, is proposing to introduce legislation designed to stop creditors, including so-called ‘vulture funds’, from pursuing inequitable payments through Jersey’s courts. The decision to propose a new law was taken following a public consultation on the subject, which closed in December 2011.

There were 25 substantive responses to the consultation, including submissions from private individuals, companies and representatives of non-governmental organisations, as well as the United Nations.

The proposed legislation would aim to limit practices that could undermine international debt relief efforts. This demonstrates Jersey’s commitment to play its part in the global effort to support measures which assist the world’s most heavily indebted poor countries.

Senator Gorst commented: “By bringing forward a law to discourage so-called vulture funds from using our courts, Jersey will be sending a clear and positive message that ours is a well-regulated, co-operative and transparent jurisdiction.

“In proposing this legislation, our aim is to ensure that Jersey continues to support international debt relief efforts, while at the same time upholding the sanctity of contract law and remaining compliant with our human rights commitments.”

To date, the UK is the only country in the world to have enacted a similar law to limit practices that could undermine international debt relief.

JFSC: Proposed Fees for Collective Investment Funds and Fund Services Businesses

2012-02-01T23:43:00.000Z

The Jersey Financial Services Commission has today published a Consultation Paper setting out the proposed fees for Collective Investment Funds and Fund Services Businesses.

The base line application and annual fees for Collective Investment Funds have not increased since 2002. The proposed increases are significant but where possible they have been kept in line with, or below the cumulative annual Jersey Retail Price Index since 2002 or from the date of the last increase. If agreed, the proposed fees will take effect from 1 July 2012.

The increase in fees is required at this time to partly fund the existing operational needs for this sector, as these are running at a significant annual deficit which is currently being covered by the Commission’s Reserves. The increase also reflects the identified need for additional policy resources necessary for Jersey to continue to align its regulations with International Standards and emerging European Union (EU) requirements.

Responses to the Consultation Paper are invited and should be provided, in writing, to the Commission in line with the timescale stated in the Consultation Paper.

ESMA outlines future regulatory framework for ETFs and other UCITS issues

2012-01-30T23:35:00.000Z

ESMA publishes today a consultation paper (ESMA/2012/44) setting out future guidelines on UCITS Exchange-Traded Funds (UCITS ETFs) and other UCITS-related issues. The proposals cover both synthetic and physical UCITS ETFs and detail the obligations to come for UCITS ETFs, index-tracking UCITS, efficient portfolio management techniques, total return swaps and strategy indices for UCITS.

ESMA’s proposals therefore go wider than ETFs and cover such areas as the use of total return swaps by any UCITS, for which ESMA envisages additional obligations with respect to the collateral to be provided, or UCITS investing in strategy indices, where the requirements on eligibility of such indices have been tightened. The proposals also include placing an obligation on UCITS ETFs to use an identifier and facili-tating the ability of investors to redeem their shares, whether in the secondary market or directly with the ETF provider.

IoM FSC: Consultation on proposals to amend the Financial Services Act and Collective Investment Schemes Act

2012-01-27T19:03:00.000Z

The Isle of Man Financial Supervision Commission has published a consultation seeking views on a draft Financial Services (Miscellaneous Amendments) Bill that will amend the Financial Services Act 2008 and Collective Investment Schemes Act 2008.

Comments on proposals are welcomed from all interested parties – in particular those who may be affected by proposals.

The consultation is open until 23 March 2012.

Mauritius: FSC launches Global Business Guide

2012-01-26T21:03:00.000Z

A Global Business Guide aimed at facilitating and improving the licensing process for global business application was launched yesterday by the Financial Services Commission (FSC) at its seat in Ebène.

Present on the occasion, the Vice-Prime Minister and Minister of Finance and Economic Development, Mr Xavier-Luc Duval, reiterated Government's full commitment to the financial services industry. According to him, the financial services has become one of the country's success stories which has resulted in the creation of some 2 200 jobs and with nearly 28 000 global business companies operating in this sector with a yearly turnover of around Rs 5 billion. Mr Duval said that the Government is working closely with the FSC and the Board of Investment to increase Mauritius' visibility on the international financial market by maintaining the country's clean financial reputation.

As regards the economy, Vice-Prime Minister Duval cautioned that the Mauritian economy will be affected with the gloomier outlook of the world economy in the wake of the financial crisis especially in Europe where a lower growth rate than forecasted that is, 0.3% instead of 1.8%, has been registered. In view of this situation, Mauritius is revising its growth rate forecasts, he said.

For her part the Chief Executive of the FSC, Ms Clairette Ah-hen, recalled that the global economic crisis has intensified the debate about the role of International Finance Centres. The challenge for the financial service in Mauritius, she said, is to ensure that its regulatory standards are at par with the international standards and that its reputation is not infringed by identification with financial crime. The Global Business guide will serve as a working tool which will be updated as and when new processes are introduced, she added.

The Global Business Guide provides guidance to investors and service providers with a proper understanding of the requirements for applying for a global business license as well as to remove bottlenecks in the application processes. It also aims at contributing to enhance the competitiveness of Mauritius as an international financial centre of substance.

JFSC: Register of Recognized Auditors

2012-01-26T18:57:00.000Z

The Register can be viewed by clicking here

Jersey introduces new scheme to enhance its fund regime

2012-01-26T18:27:00.001Z

Jersey has extended its funds regime through the introduction of the Private Placement Fund to widen the choice available to investors.

Private Placement Funds are closed ended funds available to a limited number of sophisticated institutional or professional investors. Similar in scope to the existing COBO (Control of Borrowing Order) private funds, the new fund offering is designed for ‘fast track’ approval, usually within three business days.

Private Placement Funds will sit within the COBO framework and will complement the existing Expert Fund regime which also provides a streamlined approval process and has helped position Jersey as a leading European centre for alternative funds business.

Geoff Cook, chief executive, Jersey Finance Limited, commented:

“Even in these testing economic conditions, Jersey has seen increasing levels of business in the alternative funds sector during 2011 and our latest figures show 10.5% year on year growth in the net asset value of funds being administered in Jersey.

“With Jersey’s funds industry already well positioned to secure alternative funds business and with signs of further growth evident, it is an appropriate time to offer an even wider choice of sophisticated fund vehicle to meet international demand. The introduction of the Private Placement Fund scheme demonstrates that Jersey is determined to not only remain competitive in the funds arena but will also continue to provide innovative solutions within its range of fund services.”

He added: “Industry representatives led by Mike Lombardi at Ogier and Ben Robins at Mourant Ozannes have consulted closely to help fashion this new fund regime, taking into account the evolving needs of international investors and the changing nature of global regulation.”

Key features are:

The fund is restricted to less than 50 sophisticated, professional investors
It is closed ended and has a minimum investment or commitment level of £250,000 or currency equivalent
A fast track approval process is available provided that the offer document conforms to the applicable content rules and sponsors meet the suitability requirements contained within the Private Placement Fund guide
Each Fund requires a mandated licensed Jersey administrator approved by the Jersey Financial Services Commission
The Offer Document is obliged to include an appropriate form of investor warning.

Jersey will continue to operate its COBO regime also for those specialist private funds which do not fall within the scope of the new Private Placement offer. The new Private Placement Fund is effective and available to investors from Thursday, January 26.

Nigel Strachan, Chairman of the Jersey Funds Association, added:

“Jersey’s funds industry, together with the Jersey Financial Services Commission, has been working really hard to create this new Private Placement funds regime, so it’s excellent news that it can now be unveiled. Specifically geared towards limited numbers of professional or sophisticated investors, this flexible regime will offer, provided the fund satisfies certain conditions, a fast track, streamlined authorisation process that we believe will add to the strength and range of fund products in Jersey and provide speed and certainty to launch for investors – essential in today’s market, where arrangers need to react quickly to new market opportunities. With its appropriate regulatory oversight, we expect the regime to be attractive across the alternative asset classes, including real estate, private equity, mezzanine, cleantech and emerging market funds.”

Jersey launches Private Placement Fund

2012-01-26T18:07:00.000Z

The Jersey Financial Services Commission (the "Commission") has today published a Guidance Note on a new Private Placement Fund product that will be given consent under the Control of Borrowing (Jersey) Order 1958.

The Private Placement Fund will be aimed at professional and sophisticated investors and approved on a fast track streamlined authorisation process – developed in consultation with the Jersey Funds Association and Jersey Finance.

The streamlined authorisation process will be achieved through a self certification application by the Designated Service Provider to the Fund who is registered as a Fund Administrator under the Financial Services (Jersey) Law 1998.

The Commission’s Director General, John Harris, said, “The Jersey Private Placement Fund is a significant new business opportunity for Jersey. The Funds Industry has identified a need for a private fund product aimed at professional and sophisticated investors where speed to market is critical. The self certification process is a new approach for the Commission and requires our registered Fund Administrators to certify to the Commission that the promoters of the Private Placement Fund are of good standing.

It will be possible to issue consent within 72 hours on receipt of a complete application subject to the application meeting the criteria set out in the Jersey Private Placement Fund Guide.”

IMF: Statement at the Conclusion of the 2012 Article IV Consultation Mission to Mauritius

2012-01-25T15:27:00.002Z

An International Monetary Fund (IMF) mission led by Martin Petri visited Port Louis during January 11–25, 2012 to conduct the discussions for the Article IV consultation with Mauritius. The mission met with The Honorable Prime Minister Dr. Navinchandra Ramgoolam, The Honorable Vice Prime Minister and Minister of Finance and Economic Development Xavier-Luc Duval, Governor of the Bank of Mauritius Rundheersing Bheenick, other senior government officials, as well as representatives of the National Assembly, the private sector, and civil society.

At the conclusion of the visit, Mr. Petri issued the following statement today in Port Louis:

“The Mauritian economy has performed reasonably well in 2011 with real growth at market prices estimated at 4.1 percent. This reflects in part the authorities’ long record of prudent macroeconomic policies and their comprehensive policy response to the ongoing global crisis. The challenge for 2012 and beyond will be to maintain growth through increased public and private investment and productivity advances, while continuing medium-term fiscal consolidation to reduce economic vulnerabilities. Taking account of the slowdown in the world economy and a moderately expansionary fiscal stance, economic growth is projected to decline moderately to somewhat less than 4 percent in 2012.

“The recent developments in inflation are mainly due to administered prices and one-time exogenous factors that should not result in sustained inflationary pressures with the appropriate monetary policy response and wage restraint. Year-on-year inflation in 2012 is expected to be 5 percent. The monetary policy stance appears broadly appropriate at this time with future rate adjustments depending on economic developments. The Bank of Mauritius (BOM) had to remove excess liquidity from the market during 2011 with negative effects on its income position, a situation likely to persist in 2012 and that is necessary from a macroeconomic perspective. Coordination between BOM policies and the government’s financing strategy should contribute to a smooth operation of the money and debt markets. The banking sector appears robust, and the financial system has proved resilient.

“With the 2012 budget, the government intends to keep Mauritius on a sustained growth path. Compared to 2011, the overall fiscal deficit is projected to increase mainly on account of capital investment and spending from special funds. Implementation constraints could result in lower than intended spending as happened during 2011. With a small output gap estimated for Mauritius in 2012, the mission recommends a cautiously expansionary fiscal stance with careful execution of capital spending, tight financial controls on public enterprise finances, and improvements in the targeting of social benefits. The authorities’ medium-term fiscal consolidation plans are welcome to reduce fiscal and external vulnerabilities.

“Structural reforms implemented steadily over the years have contributed to raising Mauritius’ competitiveness, but more can be done to raise standards of living further. Maintaining the reform momentum to (i) reduce critical structural bottlenecks in infrastructure; (ii) build human capital through education; (iii) improve the targeting of social benefits; and (iv) to reform the parastatal sector will further strengthen Mauritius’ ability to compete in the world economy, including as an international financial and services center.

“The IMF stands ready to assist the authorities in the implementation of their economic program, including through the provision of technical assistance, and looks forward to continued fruitful policy dialogue in the period ahead.”

Mauritius: Presentation of the Global Business Guide

2012-01-25T13:29:00.003Z

The Global Business (‘GB’) Guide was presented at the FSC House on 25 January 2012 in the presence of the Hon. Xavier-Luc Duval, G.C.S.K, MP, Vice-Prime Minister, Minister of Finance and Economic Development. Mr. Duval highlighted in his address that the GB Guide “is an important tool to ensure greater compliance and the smooth process for the creation Global Business Companies”. The Minister of Finance commended FSC’s initiative and the effective collaboration between the regulator and industry partners to promote the sector.

He spoke on the importance of creating more substance in the financial services sector to consolidate the position of Mauritius as a gateway for investment into Africa. Mr. Duval also stressed the need for the Mauritius IFC to establish more substance, and the role of all the different partners of the sector to ensure the safeguard of the reputation of the Mauritius as a clean jurisdiction.

Ms. Clairette Ah-Hen, the Chief Executive of the FSC explained in her welcoming address the main objectives of the GB Guide which are to:

provide guidance to investors and service providers;
remove bottlenecks to the application process;
strengthen the continuous and efficient collaboration between the FSC and Management Companies; and
contribute to enhancing the competitiveness of Mauritius as an international financial centre of substance and as a preferred destination for starting a business

She said that the Guide is a dynamic working tool which will be updated as the FSC develops new products, improves its processes. Ms. Ah-Hen also announced that that training sessions and seminars will be conducted for industry partners to ensure common standards of practice. The Chief Executive stressed the importance of joint efforts between the industry and regulator for a smooth implementation of the process and concluded: “I am convinced that 2012 will see a fruitful collaboration between the FSC and the Industry as well as with other stakeholders”.

India: Post Vodafone verdict, government to clamp down on Mauritius deals

2012-01-22T22:27:00.002Z

The Economic Times:

Rattled by its defeat in a $2.2-billion tax dispute with Britain's Vodafone Group, the government is examining the possibility of scrapping a rule that makes it incumbent upon India's tax authority to recognise so-called the tax residency certificates (TRCs) issued by the Mauritius tax office. The TRC is considered to be proof that an investor is a resident of Mauritius and thus entitled not to pay capital gains tax under the Indo-Mauritius tax treaty.

Mauritius: Limited Partnerships - Application for a Category 1 Global Business Licence

2012-01-20T12:32:00.003Z

The Financial Services Commission (the “Commission”) has issued a Circular Letter following the enactment of the Limited Partnerships Act 2011 (the “LPA”).

The Circular Letter sets out the requirements for Limited Partnerships applying for a Category 1 Global Business Licence (“GBL 1”) pursuant to section 71 of the Financial Services Act 2007 (the “FSA”).

1. Registered Agent

According to Section 2 of the LPA, registered agent includes a Management Company, where the Limited Partnership holds a GBL 1. In this respect, the Commission shall require that a Limited Partnership holding a GBL 1, maintains at all times, a Management Company as its registered agent.

2. Conduct of Global Business

It is to be noted that Section 71 (1) of the FSA allows a Limited Partnership to apply for a GBL 1. In considering such an application, the Commission shall have regard to whether the conduct of business will be or is being managed and controlled from Mauritius in accordance with Section 71 (4) (a) of the FSA.

In relation to a Limited Partnership applying for a GBL 1, the Commission shall have regard to whether -

(a) at least one Partner of the Limited Partnership is:

(i) resident in Mauritius, where the partner is a natural person; or

(ii) incorporated, formed or registered under the laws of Mauritius, where the partner is not a natural person;

(b) the Registered Agent of the Limited Partnership is resident in Mauritius;

(d) the Limited Partnership will keep and maintain or keeps and maintains, at all times, its accounting records at its registered office in Mauritius; and

(e) the Limited Partnership prepares or proposes to prepare its statutory financial statements and causes or proposes to have such financial statements to be audited in Mauritius.

3. CDD Requirements for Limited Partnerships

Management Companies have the obligation to undertake effective customer due diligence (CDD) measures, and risk profiling procedures when establishing business relationships and throughout such relationships (the obligation being a continuing one). When an Applicant for Business is a Limited Partnership registered under the LPA, the Management Company must identify and verify the identity of the principals or proposed principals of the Limited Partnership, i.e. the General Partner(s) and the Limited Partner(s).

3.1 Submission of documents

3.1.1 Documents to be submitted for the application of a GBL 1

When a Limited Partnership is applying for a GBL 1, the Management Company must submit the following documents to the Commission:

(a) the Partnership Agreement;

(b) CDD Documents on the General Partners, and CDD documents on the significant Limited Partners of the Limited Partnership;

(d) any other documents as may be required by the Commission.

3.1.2 In addition, where the Limited Partnership holds another Licence under any of the relevant Acts, it shall comply with the requirements set out in the respective relevant Acts.

Air France and Air Mauritius extend their partnership in the Indian Ocean

2012-01-19T20:08:00.001Z

Starting on 1st February 2012, Air France will be commercializing daily flights operated by Air Mauritius under an Air France flight number between the two airports in Reunion Island (Saint-Denis and Saint-Pierre) and Mauritius.

This commercial partnership comes within the framework of the agreements signed between the two airlines in 2008, which already enables Air Mauritius to use its code on Air France flights from the hub at Paris-Charles de Gaulle in Metropolitan France and to several destinations in Europe.

This code-share agreement increases capacity to Reunion Island and Mauritius by creating new travel opportunities via Mauritius and via Reunion Island. Moreover, Air France enables its customers to earn miles between Reunion Island and Mauritius.

Air Mauritius operates up to 7 daily frequencies on departure from Mauritius to Reunion Island, Roland Garros and Pierrefonds airports.

Air Mauritius and Air France together operate up to 18 weekly flights to Mauritius at peak periods on departure from Paris-CDG airport. Air Mauritius operates up to 9 weekly flights by Airbus A340-300 and Air France operates up to 9 weekly flights by Boeing 747-400.

Air France operates up to 12 weekly flights to Reunion Island by Boeing 777-300ER at peak periods on departure from Paris-Orly airport.

IOSCO publishes principles on suspension of CIS redemptions

2012-01-19T19:57:00.001Z

The Technical Committee of the International Organization of Securities Commissions (IOSCO) has published its final report, Principles on Suspensions of Redemptions in Collective Investment Schemes, which contains principles regarding the suspension of redemptions for open-ended collective investment schemes (CIS).

The principles reflect a common level of approach and provide standards against which both regulators and the industry can assess the quality of regulation and industry practices concerning suspensions of redemptions.

Principles for Suspension of Redemptions of Collective Investment Schemes

The principles, which are based on the CIS responsible entities’ basic duty to manage CIS liquidity on an on-going basis so as to avoid suspensions to the extent possible, generally cover all types of openended CIS which offer a continuous redemption right, and apply irrespective of whether they are offered to institutional or retail investors. They are addressed to those entities responsible for the overall operation of the CIS and in particular its compliance with the legal/regulatory framework in the respective jurisdiction and thus for the implementation of the principles. The delegation of activities may not be used to circumvent the principles and there should be compliance with the principles, whether activities are performed directly or through a third party.

Management of liquidity risk

1. The responsible entity should ensure that the degree of liquidity of the open-ended CIS it manages allows it in general to meet redemption obligations and other liabilities.

2. Before and during any investment, the responsible entity should consider the liquidity of the types of instruments and assets and its consistency with the overall liquidity profile of the open-ended CIS. For this purpose, the responsible entity should establish, implement and maintain an appropriate liquidity management policy and process.

Ex-Ante Disclosure to Investors

3. The responsible entity should clearly disclose the ability to suspend redemptions in exceptional circumstances to investors prior to their investment into the CIS.

Criteria/Reasons for the suspension

4. Suspension of redemptions by the responsible entity may be justified only a) if permitted by law and in exceptional circumstances provided such suspension is exclusively in the best interest of unitholders within the CIS, or b) if the suspension is required by law, regulation or regulators.

Decision to suspend

5. The responsible entity should have the operational capability to suspend redemptions in an orderly and efficient manner.

6. The decision by the responsible entity to suspend redemptions, in particular the reasons for the suspension and the planned actions should be appropriately:

a. documented;

b. communicated to competent authorities and other relevant parties;

c. communicated to unit-holders.

During the suspension

7. During the suspension of the redemptions, the responsible entity should not accept new subscriptions.

8. The suspension should be regularly reviewed by the responsible entity. The responsible entity should take all necessary steps in order to resume normal operations as soon as possible having regard to the best interest of unit-holders.

9. The responsible entity should keep the competent authority and unit-holders informed throughout the period of suspension. The decision to resume normal operations should also be communicated as soon as practical.

However, it should be noted that not all principles would necessarily be appropriate for, or apply to, specific non-retail CIS which are not offered to the public and are not subject to approval/registration but instead are subject to specific rules under their national applicable law and regulation.

Implementation of the principles may vary from jurisdiction to jurisdiction, depending on local conditions and circumstances.

Guernsey sees 50%+ rise in insurance licenses issued

2012-01-17T23:42:00.000Z

The number of insurance licenses issued in Guernsey last year rose more than 50% compared to the previous 12 months.

Figures show that the Guernsey Financial Services Commission (GFSC) licensed 72 international insurers during 2011, which is a 53% increase from the 47 approved during 2010.

This has helped push the net number of international insurance entities licensed in Guernsey up by 12, from 675 at the end of 2010 to 687 at the close of 2011.

Fiona Le Poidevin, Deputy Chief Executive of Guernsey Finance – the promotional agency for the Island’s finance industry, said: “The latest figures show that there have been far more licenses issued during 2011 than the immediately preceding years and this is across the range of entities from conventional captive insurance companies, PCCs [Protected Cell Companies], ICCs [Incorporated Cell Companies] and in particular, PCC and ICC cells.

“These additions significantly outweigh the number of surrenders during the same period and we are aware of several more entities which are being licensed during the very early part of 2012. These developments are expected to see the value of our international insurance sector rise yet further from the current strong position reached through growth in recent years.

“The new figures cement Guernsey’s status as the largest captive insurance domicile in Europe and among the top four the world. This is a message we are keen to reinforce as we continue to promote Guernsey’s risk management credentials to both London and wider introducer markets during 2012.”

The figures show that during 2011 there were 72 new international insurance licenses issued in Guernsey, comprising 6 companies, 12 PCCs, 40 PCC cells, 1 ICC, 7 ICC cells and 6 life policy cells.

This meant that at the end of December 2011 the net total number of licensed international insurance entities stood at 687, made up of 255 companies, 68 PCCs, 267 PCC cells, 5 ICCs, 15 ICC cells and 77 life policy cells.

Towards the end of 2011 there has been notable media interest in two particular new schemes with links to Guernsey. Broking firm Acumus has launched the Guernsey-based Igloo Insurance PCC Limited. Three UK housing associations have joined the scheme by taking cells in the PCC to insure property risks while avoiding market volatility and a number of other associations are expected to join during 2012. It is managed by Heritage Insurance Management Limited.

The Jardine Lloyd Thompson Group (JLT) has announced that its Guernsey office will play a key role in a new mortgage indemnity insurance scheme being introduced in the UK. The Home Builders Federation (HBF) and the Council of Mortgage Lenders (CML) have created the scheme, which will see mortgages on new build homes underwritten by house builders and the UK Government. By insuring the risk of default losses, the scheme allows lenders to offer 95% loan to value (LTV) mortgages on new homes.

Martin Le Pelley, Chairman of the Guernsey International Insurance Association (GIIA), said: “It is extremely encouraging for Guernsey’s insurance market that we are seeing such positive trends at a time when an economic and political storm is engulfing the rest of Europe.

“In fact, the uncertainty created by the credit crunch and subsequent recession emphasise how important proper risk management is within companies operating in the European market and elsewhere. Guernsey has been well-placed to assist companies in this regard due to our breadth of experience and reputation for quality.

“As a result of the decision not to seek equivalence with the proposed European regulatory regime, Solvency II, our internationally compliant insurance regulations continue to provide the local industry and also our current and potential clients with certainty and clarity regarding the regulation of insurance business in Guernsey. This has, no doubt, contributed to the growth of the market during 2011.”

GFSC information shows that 63% of licenses issued in 2011 were to entities with parents in the UK but there was also new business from other parts of Europe, North America, the Caribbean and Asia. The GFSC has also released data for 2010 which shows that the Guernsey international insurance industry had gross assets of £21.4 billion, a net worth of £8.5 billion and premiums written totalling £4.1 billion.

Jersey Finance: Statement in response to comments by Ed Miliband regarding action against the Crown Dependencies

2012-01-16T23:38:00.000Z

Sirs,

We have noted with disappointment the comments made by the leader of the opposition, Ed Miliband over the weekend, in which he urges action by the EU against British Crown Dependencies, including Jersey.

It is disappointing when political leaders choose to make inaccurate accusations about Jersey which do not reflect the positive contribution that Jersey and the other Crown Dependencies make to the broader UK economy. Once again the confusion between the terms “tax avoidance” and “tax evasion” creates a false impression of Jersey’s co-operative, well-regulated offshore financial centre.

Tax evasion is illegal in Jersey and it is a criminal offence – not a civil one –to facilitate or engage in tax evasion. The majority of Jersey’s activities are focussed on the pooling of and structuring of international funds that have already been taxed.

The last Labour Government commissioned the Foot Review in December 2008. The report highlighted the value that Jersey provided to the UK during the banking crisis in the form of hundreds of billions of pounds of liquidity. That contribution continues to this day.

Furthermore, the report concluded that the amount of tax avoided by UK corporates using British Crown Dependencies and Overseas Territories was “significantly lower than estimates produced by previous studies have suggested.” Therefore, the Foot report and most recent analysis from the HMRC (September, 2011), both suggest that tax avoidance is considerably lower than the wildly inflated figures produced by self-appointed lobby groups such as the Tax Justice Network.

The characterisation of Jersey as a “tax haven” fails to recognise the regular endorsements that the island has received from the OECD and IMF. Moreover the accusation made today that Jersey is not co-operative with the HMRC is quite simply wrong: Jersey has signed both a Tax Information Exchange Agreement (TIEA) and a Double Taxation Agreement (DTA) with the United Kingdom. Jersey has very clear, open and transparent lines of communication with HMRC and is fully co-operative on tax matters. We also work alongside the UK in fighting financial crime and tax evasion.

Ian Gorst, the Chief Minister of Jersey has today extended an invitation to Mr Miliband to visit the island to learn first hand how Jersey actually operates as a stable, reliable and responsible international financial centre.

Economic Freedom: Mauritius Ranked 1st in Sub-Saharan Africa

2012-01-16T08:42:00.001Z

The 2012 Index of Economic Freedom, published annually by The Wall Street Journal and The Heritage Foundation, ranks Mauritius first out of 46 countries in the Sub-Saharan African region, with an overall score of 77 which is well above the world average. For Mauritius, it is the first time in the top 10 and the first time ever that a Sub-Saharan African country has been so highly rated. Botswana and Rwanda take the 2nd and 3rd place respectively.

With a score of 77.0, Mauritius is ranked as the 8th freest in the world in the 2012 ahead of Ireland (9th), the United States (10th), the United Kingdom (14th), Japan (22nd), Germany (26th) and France (67th). Improvements were observed in property rights, monetary freedom, and the management of government spending, says the Index of Economic Freedom.

According to the report, Government’s continued commitment to structural reforms and policies that promote integration into the global marketplace has positioned the island economy as a world leader in economic freedom. On this score, Mauritius becomes the first Sub-Saharan African country ever to advance into the top 10 in the rankings.

The Index further shows that the Mauritian economy’s impressive progress hinges on a sound and transparent legal framework that strongly upholds the rule of law. The competitive tax regime and an efficient regulatory environment have encouraged broad-based and diversified economic development. It is also reported that open-market policies that support dynamic trade and investment have bolstered productivity and competitiveness. Following the adoption of policies that encourage flexibility and empower individuals, Mauritius has achieved economic prosperity, says the report.

In terms of enforcement of laws regarding intellectual property rights, Mauritius obtains a score of 65.0. As per the report, the judiciary is independent, and trials are fair and the legal system is generally non-discriminatory and transparent. Mauritius is also viewed as one of Africa’s least corrupt countries.

Mauritius-Turkey conclude talks on a Trade and Economic Cooperation Framework Agreement

2012-01-13T22:47:00.000Z

Mauritius and Turkey yesterday concluded discussions on a Framework Agreement on Trade and Economic Cooperation. The Agreement will be signed at the end of February 2012 in Mauritius during the visit of the Turkish Minister of Economy, Mr. Caglayan.

The Framework Agreement will provide an appropriate platform to bolster trade between Mauritius and Turkey. The Framework text is an umbrella agreement which will allow cooperation and trade in various areas such as agriculture, fisheries, textiles, services including tourism, SME development as well as promote a higher degree of interaction between private businessmen of both countries through joint ventures and trade promotion activities.

The Turkish delegation was led by Mr Hakan Karabalik, Head of Department of the Ministry of Economy. The Mauritian side was headed by the Secretary for Foreign Affairs, Ministry of Foreign Affairs, Regional Integration and International Trade, Mr Anand Neewoor.

In his closing remarks, the Secretary for Foreign Affairs said that the successful outcome of the talks mark another milestone in Mauritius-Turkey’s maturing trade relationship, opening up the possibility of a gradual network of Memorandum of Understandings or agreements that can be envisaged in different sectors. According to Mr Neewoor, the Framework Agreement is designed in a way which will offer both an individual and collective economic boost, and allow businesses to draw on the benefits of the Mauritius-Turkey Free Trade Agreement (FTA) signed in September 2011.

For his part, Mr Karabalik, noted that concluding the Framework Agreement is the second step that has been taken after the signature of the FTA and this has been done rapidly. Mauritius is the first country in sub-Saharan Africa with which Turkey has signed an FTA and due to this fact Turkey attaches great importance to this FTA, he said. ‘For sure in our experience, it will help to boost trade and economic relations as well as investments between both countries’, Mr Karabalik stressed.

It is recalled that Mauritius and Turkey signed a Free Trade Agreement (FTA) in September 2011 and the Framework Agreement concluded will provide the necessary platform to tap the benefits of the FTA once it enters into force.

Mauritius-Turkey: A Trade and Economic Cooperation Framework Agreement under discussion

2012-01-11T14:32:00.000Z

A two-day meeting between Mauritius and Turkey to start discussions on a Framework Agreement on Trade and Economic Cooperation opened this morning in Port Louis.

The Turkish delegation is being led by Mr Hakan Karabalik, Head of Department of the Ministry of Economy. The Mauritian side is being headed by the Secretary for Foreign Affairs, Ministry of Foreign Affairs, Regional Integration and International Trade, Mr Anand Neewoor, and comprises representatives from relevant Ministries and the private sector including the Mauritius Chamber of Commerce and Industry and MEXA.

Discussions during the meeting will also focus on preparations for the proposed visit of the Turkish Minister of Economy Mr. Zafer Caglayan, to Mauritius scheduled tentatively for end February 2012. It is proposed that the Framework Agreement be signed during the visit of the Turkish Minister.

The objective of the Framework Agreement is to enhance economic cooperation as well as foster trade between Mauritius and Turkey. It covers different areas of cooperation including Agriculture, Education, Science and Technology as well as provisions on trade facilitation and trade promotion. The Agreement will provide a platform to identify areas of investment and create greater economic synergies between both countries.

It is recalled that Mauritius and Turkey signed a Free Trade Agreement (FTA) in September 2011 and the Framework Agreement being discussed will provide the necessary platform to tap the benefits of the FTA once it enters into force.

In his opening remarks, the Secretary for Foreign Affairs, Mr Neewoor, said that economic relationship with Turkey is very important and is growing rapidly. ‘Turkey is an ascending economic power and is ranked 17th among the world’s top 20 economies. With a population of 74 million, half of which is under 29, Turkey is a strategic platform of access to Europe, Caucasus, Central Asia, the Middle East and North Africa’, he stated.

According to the SFA, last year when the two governments met in Istanbul during the signing of the FTA, they concurred that both countries should go beyond the market access dimension of the FTA and engage cooperation on a broad range of trade and economic issues. ‘It is in this context that the need for a Framework Agreement becomes relevant and our two governments have therefore agreed to work on a text that will become the Framework Agreement on Trade and Economic Cooperation’, he added.

For his part, Mr Karabalik, highlighted the importance that Turkey attaches to the FTA signed with Mauritius. In addition to the FTA, he said, and so as to develop and strengthen the trade and economic cooperation, another step to be taken is to sign an Agreement on Trade and Economic Cooperation. Mr Karabalik expressed hope that in light of the Agreement, a Joint Economic Council (JEC) will be set up at Ministerial level which shall meet upon the requests of either party, alternately in Ankara and Port Louis.

In the first ten months of 2011, the volume of trade between Mauritius and Turkey reached 43.2 million USD. During this period, Turkey’s exports increased by 117.4% that is from 16.9 million USD to 36.8 million USD. Similarly, Turkish imports rose by 21.7% from 5.2 million USD to 6.4 million USD.

Understanding Investor Due Diligence

2012-01-10T22:25:00.003Z

The investor due diligence process has evolved with the growth of the hedge fund industry. What was once a short and rather perfunctory process has grown into one which today is highly quantitative and detailed. While there is no one-size-fits-all formula for investors, one certainty is that managers who understand the components of the due diligence process will have an easier time meeting the requests of investors.

This paper, based on numerous conversations with investors, seeks to identify and describe the components of a professional due diligence process – from simple annual return figures to detailed attribution analysis. The end goal is to provide a basic roadmap that can help fund managers understand the depth and breadth of this process and ultimately to help them achieve their fundraising goals.

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TIFA: 5th Council Meeting to be hosted in Mauritius

2012-01-09T11:52:00.000Z

Mauritius will host the 5th Trade and Investment Framework Agreement (TIFA) Council meeting on 16 and 17 January 2012 at the Inter Continental Hotel, in Balaclava.

At a joint Press Conference held today in Port Louis, the Secretary for Foreign Affairs, Ministry of Foreign Affairs, Regional Integration and International Trade, Mr A. P Neewoor, and Mr H. Jimenez, Economic/Commercial Officer of the US Embassy elaborated on the TIFA Council meeting, on TIFA as a whole as well as its Work Plan, and on AGOA which is one of the key issues to be discussed at the Council meeting.

A high level US delegation led by Ambassador Demetrios Marantis, Deputy United States Trade Representative (USTR) is expected for the Council meeting. Representatives of the US Department of State, USTR Office and USAID East Africa Trade Hub will also be part of the US delegation. The Secretary for Foreign Affairs will lead discussions on the Mauritian side.

The TIFA Council is an important process that helps to pave the ground for bilateral cooperation. It addresses a wide range of trade and investment issues that include, but are not limited to, trade capacity building, intellectual property, labour, environmental issues and enhancing the participation of small and medium-sized enterprises in trade and investment. Mauritius is among the few African countries having signed a TIFA with the US.

Technical work pertaining to the TIFA has been carried out on the basis of a Work Plan agreed between Mauritius and the US. The Work Plan consists of 14 areas of cooperation namely trade and investment promotion in competitive sectors, enhancing private sector linkages, coordinating on AGOA implementation, promoting Intellectual Property Rights (IPR), enhancing trade in services, trade in fish and seafood sectors, and, strengthening agri-business linkages, amongst others.

It is recalled that the Mauritius-US TIFA was signed on 18 September 2006 in Washington. The TIFA includes provisions for the establishment of a bilateral Trade and Investment Council that will meet annually to monitor trade and investment relations, identify opportunities for expanding trade and investment, and identify important issues and challenges that the two countries need to address. The first official meeting of the TIFA Council took place on 5 and 6 February 2007 in Mauritius.

The Governments of both Mauritius and US are called upon to meet, at least once a year, at the level of the TIFA Council alternately in Port-Louis and Washington. The purpose of the TIFA Council meeting is to review progress in the implementation of TIFA Work Plan and set the agenda of work for the coming year.

TIEA a landmark for Jersey in year of increasing marketing activity in India

2012-01-05T22:44:00.000Z

Jersey Finance has undertaken further promotional activity in India this month following the signing of the Tax Information Exchange Agreement (TIEA) with India in November, which was seen by Jersey as a landmark in helping develop closer commercial ties with Indian companies and investors.

No fewer than 10 Jersey firms joined Jersey Finance representatives at the recent International Taxation Conference at the ITC Maratha Hotel in Mumbai where Jersey Finance was a gold sponsor. As part of its sponsorship, Jersey Finance had a speaker session within the conference schedule and Richard Teather, a senior lecturer at Bournemouth University and offshore academic, spoke on the implementation of GST in Jersey and how such a model might be adopted by India also. He was joined by Patrick Crowley, Head of ABN AMRO Bank in Jersey, whose presentation was on wealth management opportunities for Indians, and Sean Costello, Jersey Finance’s regional head of Business Development for India, who highlighted Jersey’s role as a tax neutral centre for structuring investments.

Alongside participation in the conference, Jersey Finance sponsored a networking dinner and had the opportunity to man an exhibition stand throughout the three day event where according to Sean Costello there was ‘overwhelming interest’ in the products and services Jersey can provide with particular interest in structuring investments and wealth management.

The annual event, one of the premier taxation conferences in the world, is organised by the Foundation for International Taxation, a registered educational charitable trust in India established to promote the knowledge and understanding of international taxation. This year nearly 500 international delegates attended, a record for the event, now in its 17th year.

In New Delhi recently, Jersey Finance welcomed more than 30 guests to a formal reception to mark the signing of the TIEA. Sean Costello, who hosted the event, added:

‘The guests were led by an important Indian Finance Ministry official, Kamlesh Varsney, Director of Foreign Tax and Tax Research, Department of Revenue, at the Ministry of Finance. There were also many leading Delhi based finance professionals, who were invited to the occasion and it proved an ideal opportunity to cement our growing contacts in the city.’

Geoff Cook, chief executive, Jersey Finance Limited, said:

‘We are making significant strides in developing the profile of Jersey in the key cities of Mumbai and New Delhi where Jersey Finance now has a permanent representative team and these two events were the culmination of an increasing marketing drive during 2011.’

Jersey is experiencing business growth from India. While there are no specific Jersey figures available, the Reserve Bank of India estimates that in bound direct investment from the Channel Islands was US$ 516 million in 2010, more than ten times the figure a year earlier.

Many Indian real estate, infrastructure and private equity funds have been established using feeder structures which are managed and administered in Jersey, while Indian residents are using Jersey companies to assist them in investing overseas, particularly into real estate. Jersey legal and finance professionals are also engaged in the formation of offshore funds and transactions dedicated to investment in India, mainly focused on acquisitions, financings and listings.

Casa Forma Acquired by Mauritius Based Group

2012-01-05T08:54:00.003Z

Casa Forma, the UK based luxury property development, architectural design and interior design firm, has been acquired by a large Mauritius based group with sales of £1 billion in January 2012.

This acquisition allows Casa Forma to develop its own properties as £20 million of investment has been allocated to develop properties in super prime locations of London, UK including Mayfair, Belgravia, Knightsbridge, and Chelsea.

“Rather than do architectural and interior design for third parties, it will be financially beneficial for Casa Forma to invest in its own properties and realize the capital gains from London's increasing property prices as well as from improving the layout and functionality of a space,” Faiza Seth (CEO of Casa Forma) adds.

According to Hamptons, the international UK residential property service, London property prices have increased by 36% since February 2009 and are likely to finish up 13% for the year. Prices are also expected to continue growing in 2012 due to international demand for London properties, since London is seen as a cultural and financial capital of the world. Prime London property values are expected to defy the wider economic downturn as demand from overseas buyers continues to boost prices.

Casa Forma has a track record of enhancing a property by both providing an improved layout that increases functionality, and then supplementing this with luxury interior design which increases the value of a property both intrinsically and commercially.

Casa Forma is an international luxury design firm that has a track record of designing 50 luxury properties since its inception that has provided architectural and interior design for residential, hospitality, and commercial properties. Their experienced team of London interior designers and architects is led by world class experts from the fields of decorative and structural design.

Casa Forma was founded in 2007 by CEO Faiza Seth to develop properties in super prime locations of London and also offers its interior and architectural design services to third parties. It is an award winning architectural and interior design company that has an international team of 15 architects and interior designers based in London. Their international practice provides a comprehensive interior design and architectural design service for residential, commercial and hospitality properties. Their experienced team of interior designers and architects is led by world-class experts from the fields of decorative and structural design placing absolute importance on understanding the particular needs and wishes of their clients for a professional service delivered to an uncompromisingly high standard.

Mauritius: Compliance with the transitional provisions under Part XIV of the Securities Act 2005

2012-01-03T23:23:00.001Z

The Financial Services Commission (the “Commission”) has noted that some entities have not yet applied for a licence in accordance with the transitional provisions under the Securities Act 2005. The Commission hereby draws your attention that this constitutes an offence under Section 142(1) of the Securities Act 2005 and under Section 14 of the Financial Services Act 2007.

The entities are hereby required to comply with the Securities Act by 30 March 2012. In the event of non-compliance by this date, entities will be subject to regulatory actions.

India: Qualified Foreign Investors (QFIs) allowed to directly invest in Indian equity market

2012-01-01T23:10:00.000Z

In a major policy decision, the Central Government has decided to allow Qualified Foreign Investors (QFIs) to directly invest in Indian equity market in order to widen the class of investors, attract more foreign funds, and reduce market volatility and to deepen the Indian capital market. QFIs have been already permitted to have direct access to Indian Mutual Funds schemes pursuant to the Budget announcement 2011-12. Today’s decision is a next logical step in the direction.

Foreign Capital inflows to India have significantly grown in importance over the years. These flows have been influenced by strong domestic fundamentals and buoyant yields reflecting robust corporate sector performance.

In the present arrangement relating to foreign portfolio investments, only FIIs/sub-accounts and NRIs are allowed to directly invest in Indian equity market. In this arrangement, a large number of Qualified Foreign Investors (QFIs), in particular, a large set of diversified individual foreign nationals who are desirous of investing in Indian equity market do not have direct access to Indian equity market. In the absence of availability of direct route, many QFIs find difficulties in investing in Indian equity market.

As a first step in this direction, QFIs have been permitted direct access to Indian Mutual Funds schemes pursuant to the Budget announcement 2011-12. As a next logical step, it has now been decided to allow QFIs to directly invest in Indian equity market in order to widen the class of investors, attract more foreign funds, and reduce market volatility and to deepen the Indian capital market.

The QFIs shall include individuals, groups or associations, resident in a foreign country which is compliant with FATF and that is a signatory to IOSCO’s multilateral MoU. QFIs do not include FII/sub-accounts.

Salient Features of the Scheme:

RBI would grant general permission to QFIs for investment under Portfolio Investment Scheme (PIS) route similar to FIIs.
The individual and aggregate investment limit for QFIs shall be 5% and 10% respectively of the paid up capital of Indian company. These limits shall be over and above the FII and NRI investment ceilings prescribed under the PIS route for foreign investment in India.
QFIs shall be allowed to invest through SEBI registered Qualified Depository Participant (DP). A QFI shall open only one demat account and a trading account with any of the qualified DP. The QFI shall make purchase and sale of equities through that DP only.
DP shall ensure that QFIs meet all KYC and other regulatory requirements, as per the relevant regulations issued by SEBI from time to time. QFIs shall remit money through normal banking channel in any permitted currency (freely convertible) directly to the single rupee pool bank account of the DP maintained with a designated AD category - I bank. Upon receipt of instructions from QFI, DP shall carry out the transactions (purchase/sale of equity).
DP shall be responsible for deduction of applicable tax at source out of the redemption proceeds before making redemption payments to QFIs.
Risk management, margins and taxation on such trades by QFIs may be on lines similar to the facility available to the other investors.

The scheme is expected to help increase the depth of the Indian market and in combating volatility beside increasing foreign inflows into the county.

SEBI and RBI are expected to issue relevant circulars to operationalise the scheme by January 15, 2012.

Vistra Symposium to promote Mauritius - London, 17th January 2012

2011-12-23T23:51:00.000Z

Vistra is pleased to organize an educational afternoon in celebration of the imminent opening of our office in Mauritius. The seminar will take place on 17th January at 06:30pm at the Andaz Hotel, London.

We have been fortunate in attracting the following speakers holding short speeches about Vistra Group, its focus on Mauritius and the structuring opportunities to route India and Africa bound investments:

Honourable Xavier-Luc Duval, G.C.S.K, MP - Vice Prime Minister, Minister of Finance and Economic Development of Mauritius

Mr. Ken Poonoosamy - Managing Director of the Board of Investment, the National Investment Promotion Agency of Mauritius

Mr. Richard Arlove - Executive Director, Vistra Mauritius

Mr. Bart Deconinck, Executive Chairman of Vistra

The keynote speeches will be followed by New Year cocktails and canapés.

SEC Adopts Net Worth Standard for Accredited Investors Under Dodd-Frank Act

2011-12-21T19:47:00.001Z

The Securities and Exchange Commission has amended its rules to exclude the value of a person’s home from net worth calculations used to determine whether an individual may invest in certain unregistered securities offerings. The changes were made to conform the SEC’s definition of an “accredited investor” to the requirements of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.

Under the amended rule, the value of an individual’s primary residence will not count as an asset when calculating net worth to determine “accredited investor” status. The amendments also clarify the treatment of borrowing secured by a primary residence for purposes of the net worth calculation. Under certain circumstances, they also permit individuals who qualified as accredited investors under the pre-Dodd-Frank Act definition of net worth to use that prior net worth standard for certain follow-on investments.

SEC rules permit certain private and limited offerings to be made without registration, and without requiring specified disclosures, if sales are made only to “accredited investors.” One way individuals may qualify as “accredited investors” is by having a net worth, alone or together with their spouse, of at least $1 million. The Dodd-Frank Act requires that the value of a person’s primary residence be excluded from the net worth calculation used to determine the person’s “accredited investor” status.

Under the amended net worth calculation, indebtedness secured by the person’s primary residence, up to the estimated fair market value of the primary residence, is not treated as a liability, unless the borrowing occurs in the 60 days preceding the purchase of securities in the exempt offering and is not in connection with the acquisition of the primary residence. In such cases, the debt secured by the primary residence must be treated as a liability in the net worth calculation. This is intended to prevent manipulation of the net worth standard, by eliminating the ability of individuals to artificially inflate net worth under the new definition by borrowing against home equity shortly before participating in an exempt securities offering. In addition, any indebtedness secured by a person’s primary residence in excess of the property’s estimated fair market value is treated as a liability under the new definition.

The amended net worth standard will take effect 60 days after publication in the Federal Register. Beginning in 2014, and every four years thereafter, the Dodd-Frank Act requires the Commission to review the “accredited investor” definition in its entirety and to engage in further rulemaking to the extent it deems appropriate.

SEC has now proposed or adopted more than three-quarters of the rules that the Dodd-Frank Act required the agency to write.

Additional Materials

Final Rule Release No. 33-9287

Financial Sector Blueprint 2011 - 2020

2011-12-21T18:00:00.000Z

Bank Negara Malaysia today released the new Financial Sector Blueprint. Themed "Strengthening Our Future", the Blueprint charts the future direction of the financial system over the next ten years.

As the country transitions towards a high value-added and high-income economy, the role of the financial sector is envisioned to grow beyond its role as an enabler of growth to be a key driver and catalyst of economic growth. Towards this end, the aim is for the financial sector to be more competitive, dynamic, inclusive, diversified and integrated, with the ability to offer world class financial services, in terms of breadth, depth and quality to serve the needs of Malaysia. The growth of the financial system should be ultimately anchored to the growth in the real sector. Based on the rate of growth of the economy projected for the next decade, the financial sector is envisaged to expand to six times of GDP in 2020 from 4.3 times of GDP currently. Meanwhile, the contribution of the financial services sector to nominal GDP is expected to grow from 8.6% of nominal GDP to between 10 and 12% by 2020.

Recognising the increasingly complex linkages, both between the various components of the financial system and the greater international connectivity and regional financial integration, the Blueprint moves away from the sector-based approach of the previous Financial Sector Masterplan (FSMP). The Blueprint adopts an integrated approach where recommendations are based on shared outcomes applicable to various sub-sectors within the financial sector. Beyond domestic borders, the Blueprint envisions greater participation by the Malaysian financial sector in facilitating regional financial flows, especially in supporting regional trade and investment, regional financial integration, as well as the internationalisation of Islamic finance. The formulation of the Blueprint also draws important lessons from the recent global financial crisis where financial stability is an important prerequisite in ensuring orderly and sustainable development of the financial sector and the economy as a whole.

There are nine focus areas under the Blueprint to further advance financial sector development to drive Malaysia's transition to a high value-added, high-income economy with adequate safeguards to preserve financial stability:

Effective intermediation for a high value-added and high-income economy - This entails the mobilisation of diverse savings to productive investments in Malaysia and to meet the needs of both businesses and households. A vibrant risk-capital ecosystem to support innovation-driven economic activities and start-up ventures will be developed. The initiatives will also include enhancing the provision of large and long-term project financing for infrastructure development. As Malaysia deepens its trade and investment linkages, the financial sector is envisaged to have a larger role in supporting the internationalisation of Malaysian businesses. To cater to Malaysia's growing affluent segment and maturing population, emphasis will be placed on enhancing the provision of financial services for wealth management, retirement and long-term healthcare. The development of a vibrant private pension industry is also expected to enhance the role of pension funds as a key source of funding for the longer-term and risk-based financing needs of the economy.
Developing deep and dynamic financial markets - Efforts will be directed towards improving the liquidity, depth and participation in the money, foreign exchange and government securities markets in Malaysia, in enabling more effective intermediation, transfer of risks and management of liquidity, and meeting the diverse needs of a more developed and internationally integrated economy. The foreign exchange administration rules will be progressively liberalised to further raise efficiency in financial market transactions. The development of vibrant domestic foreign exchange and money markets, and ensuring sound risk management and corporate governance practices by financial market players, will be an important agenda in the development of our financial system.
Financial inclusion for greater shared prosperity - The aim is to enable all members of society, including the underserved, to have access to and usage of quality, affordable and essential financial services. Initiatives will focus on developing more innovative delivery channels such as agent banking to enhance the outreach of financial services in a cost-efficient manner and expansion of the range of products and services such as more flexible micro financing products, long-term contractual micro saving products, and microinsurance and microtakaful products to cater to distinct financial needs of all segments of society.
Strengthening regional and international financial integration - As the Malaysian financial sector assumes a larger role in mobilising regional and cross-border funds and supporting the needs of both Malaysian corporations expanding abroad and corporations that invest in Malaysia, efforts to strengthen Malaysia's international financial linkages will be pursued. Moving forward, Malaysia's investment policy will be guided by two key considerations - (i) prudential criteria and (ii) the best interest of Malaysia criteria, which includes the effect of the investment on Malaysia's economic activity, particularly in catalysing new high value-added activities, contribution towards enhancing international trade and investment linkages and impact on financial stability, including the level of competition. A further consideration in assessing the best interest of Malaysia is the continued presence of strong and well-managed domestic banking groups that continue to mobilise a significant share of resident deposits, as this is important for the orderly growth and development of the financial sector.
Internationalisation of Islamic finance - While Malaysia has made significant inroads in becoming an international Islamic financial centre, efforts will continue to be undertaken to enhance the Islamic financial ecosystem. This will entail developing a more conducive environment for the mobilisation of higher volumes of international Islamic financial flows from a diverse range of players to be channelled through innovative Islamic financial instruments. In strengthening the legal and Shariah frameworks and further advancing Malaysia's thought leadership in Islamic finance, a single legislated body to be the apex authority on Shariah matters in Islamic finance will be established.
Regulatory and supervisory regime to safeguard the stability of the financial system - A comprehensive legislative framework will be enacted to reinforce a sound, transparent and accountable system for effective regulation and supervision. Focus will also be accorded towards enhancing capital and liquidity standards of financial institutions in line with international standards as well as raising their governance and risk management standards. As the financial sector grows to be more regionally-and internationally-connected, greater cross-border collaboration will be pursued with other supervisory authorities.
Electronic payments for greater economic efficiency - Accelerating the migration to electronic payments (e-payments) will be emphasized. In the next ten years, the Bank targets to increase the number of e-payment transactions per capita from 44 transactions to 200 transactions, and reduce cheques by more than half from 207 million to 100 million per year. Measures to achieve this aim will include providing the right price signals to encourage the switch from paper-based payments to e-payments, and facilitating wider outreach of e-payments infrastructure, such as point-of-sale terminals and mobile phone banking.
Empowering consumers - A comprehensive and holistic approach towards consumer protection and education will be pursued in collaboration with various stakeholders. The aim is to promote a culture of mutual responsibility shared between consumers, who are empowered with the knowledge, skills and financial literacy to manage their personal wealth, and financial service providers, who uphold fair and responsible dealings in the conduct of their business. The infrastructure to support greater consumer empowerment will be strengthened through establishing a single consumer credit legislation, integrated dispute resolution system and an enhanced credit information framework. Measures to promote financial capability among consumers through the integration of financial curriculum at schools and targeted financial literacy programmes based on life events will be pursued.
Talent development to support a more dynamic financial sector - A Financial Services Talent Council will be established to drive, oversee and coordinate talent development efforts in the financial sector. Other initiatives include developing talent for entry level, promoting continuous learning for the existing workforce, and attracting talent from abroad. Ensuring an adequate supply of skilled talent to meet the challenges in the new financial landscape will require greater collaboration and coordination among various agencies beyond the financial sector.

The strategies and recommendations of the Blueprint will build on the strong foundation of the Malaysian financial system. Malaysian financial institutions today are well capitalised with strong buffers, improved risk management and corporate governance practices, and greater regional presence. The financial infrastructure in Malaysia has also been significantly strengthened, including the development of a deep and vibrant bond market, robust payment and settlement systems, and an effective financial safety net. This has been supported by a comprehensive and robust regulatory and supervisory framework and effective surveillance that is forward looking and focused on addressing the risks to overall financial stability. In addition, Malaysia has a comprehensive Islamic financial system that is recognised as among the most advanced in the world.

The Blueprint charts a vision and direction for the Malaysian financial sector for the next ten years that will support Malaysia's long-term ambitions. To ensure the achievement of the desired outcomes, a robust implementation and monitoring framework will be put in place, including update on the progress of the implementation of the Blueprint.

Rezidor announces Hotel Missoni Mauritius

2011-12-20T15:37:00.001Z

Hotel Missoni, the luxury lifestyle brand of the Rezidor Hotel Group, reaches one of the most fashionable islands in the world: Mauritius, the shooting star of the Indian Ocean, and the 66th country where Rezidor is present. Overlooking the village of Baie du Cap, Hotel Missoni Mauritius will boast 80 luxury suites with unobstructed views of the ocean and the islands unrivalled beaches. It is scheduled to welcome the first guests in 2014.

“Combining Missoni’s iconic design with the local culture influenced by Europe, Africa and Asia, the hotel will be truly unique in Mauritius”, said Kurt Ritter, President & CEO of Rezidor.

“Having been passionate about Mauritius, an island of beauty and charm, its colourful culture and its wonderful population for over 30 years now, I am delighted to partner with Rezidor to bring a new kind of luxury hotel in Mauritius under the prestigious Missoni brand, which will surely be a great success and a new flagship premium quality hotel of the tourism industry in Mauritius”, added Gilles Bouigue, Executive Chairman of Bouigue Développement, owner of the property.

Mauritius is an exclusive and exotic year round destination featuring beautiful palm-fringed beaches and dramatic volcanic landscapes. Each suite of the new hotel will feature Missoni’s signature patterns and fabrics, and will have a large covered outdoor living area, known in Mauritius as a “Varangue”.

Food & beverage outlets will include Hotel Missoni’s signature restaurant “Cucina” with an authentic seasonal Italian menu; “Choco Café”, an intensely flavoured sip of classic Italian café society; a further all day dining restaurant, a lounge bar and a beach/pool bar. Leisure facilities will comprise direct access to a 650 meter sandy beach, outdoor pools, a fitness area including gym and tennis court, a kids club and a 900 square meter spa. Sunbathing, water sports, deep sea fishing, hiking, cycling and golf are just some of the leisure options available in the vicinity. Business travellers will benefit from 235 square metres of dividable meeting space with the latest AV technology.

Hotel Missoni Mauritius is located just 40 minutes from Sir Seewoosagur Ramgoolam International Airport and 50 minutes from the islands capital Port Louis.

Mauritius was an important sugar producer until the 1980s when tourism developed as a major economic sector, followed by textile and garment manufacturing and by an expanding service sector with off shore banking, free trade activities, IT and outsourcing. The number of tourist arrivals reached 935,000 visitors in 2010 – the government plans to further increase arrivals (a new airport terminal is currently under construction, and new airlines and routes are under negotiation) and to focus on high quality tourism products such as 4- and 5-star hotels.

EIB Provides a Line of Credit to Mauritius Leasing for SME Financing

2011-12-19T23:06:00.000Z

The European Investment Bank, the European Union’s long-term lending institution has agreed to provide EUR 5 million to support small and medium sized companies in Mauritius. This funding will be given to The Mauritius Leasing Company Limited to provide leasing facilities for small and medium sized companies in the country.

The loan agreements were signed today at the Labourdonnais Waterfront Hotel by European Investment Bank Vice President Plutarchos Sakellaris and the CEO of Mauritius Leasing, Ashraf Esmael. Representatives of the European Union Delegation in Mauritius, the First Deputy Governor of the Bank of Mauritius, Mr Yandraduth Googoolye, and other high ranking officials and members of the private sector were also present.

“The European Investment Bank recognises the essential significant contribution of small and medium sized companies to the country's economy. Private Sector growth in Mauritius and elsewhere across the Indian Ocean will benefit from the Mauritius Leasing Company’s long experience in financing small business in Mauritius since 1987” said European Investment Bank Vice President Plutarchos Sakellaris.

“We are delighted and honoured to be the only leasing company in Mauritius to benefit from a line of credit from the European Investment Bank. Mauritius Leasing has played a significant role in Mauritius over the last 25 years, and has been a strategic partner to both large and mid-sized companies, as well as SME’s. This line of credit from the European Investment Bank will enable us to fulfil the medium term asset finance needs of our clients, particularly in the manufacturing, construction, agro industry and export-oriented sectors, in line with the country’s development strategy.” said Mauritius Leasing’s CEO, Ashraf Esmael.

Funding from the European Investment Bank, the European Union’s long-term lending institution, reflects the commitment to supporting both the private sector and financial services in Mauritius and is fully in line with goals of the European Community Country Strategy for Mauritius. Encouraging development of small and medium sized businesses is crucial for improving the competitiveness of the Mauritian economy and overall economic growth through job creation.

The European Investment Bank has been active in Mauritius since 1975 and provided more than EUR 301 million for 38 projects in the country. In Mauritius the European Investment Bank has financed investment in tourism, transport, telecommunications, food, water, energy and textiles, as well as helping the sugar industry and small businesses.

Offshore Pilot Quarterly (December 2011, Volume 14 Number 4)

2011-12-17T08:14:00.003Z

Invisible Men

One of life’s little quirks occurred recently at a local business conference at which delegates heard from the Organisation for Economic Co-operation and Development’s head of the organisation’s Global Forum secretariat which, inter alia, is concerned with transparency. As readers know, in the United States of America the Delaware Limited Liability Company has received a lot of flak from the Offshore Pilot Quarterly in the past (as recently as the September issue) because it is a blatant example of the pot calling the kettle black (let me add, other US states offer the same anonymity, but Delaware is the most famous for it in terms of which LLC owners can choose to be invisible men, the ultimate form of anonymity). The US government condones this and these LLCs have featured in tax evasion and money laundering investigations over the years; this newsletter has previously detailed some of them, while the US continues its blitz against several international financial centres, purveyors – it claims – of unwarranted privacy. Why has this situation still not been remedied?

At the end of his presentation the Global Forum head, having detailed the dangers caused by secrecy in international commercial activities, was asked by a delegate to reconcile his concerns with those posed by US LLCs. The question was greeted with applause when suddenly the lights failed and his microphone went dead; was there a cohort from the OECD strategically placed somewhere? No, within seconds both malfunctions were corrected; not that this made any difference because silence would have improved the explanation given and we were still all in the dark. It seems to me that it is more a matter of clout rather than confidentiality.

Meanwhile, the Financial Action Task Force, an inter-governmental body, concluded its October Plenary meeting by highlighting countries that “need to establish and implement an adequate legal framework for identifying, tracing and freezing terrorist assets”. Recalcitrant governments include Cambodia, Mongolia, Sudan, Yemen and Zimbabwe. But why go into the shadows? Have your middle man contact, say, Delaware for an impenetrable LLC that rivals anything on offer anywhere.

Speaking of things impenetrable, Jersey in the Channel Islands with its close links to the City of London, and very much a stepping stone between the rest of Europe and the United Kingdom, is said to have some offshore trusts with a blanket of secrecy that rivals US LLCs. Its trust business has been buttressed by a thriving trust company industry and like many IFCs, Jersey has a privacy-inclined government (PIG) that supports the right to it, unless valid circumstances dictate otherwise. This minuscule IFC in the Channel Islands has also successfully developed banking services and so perhaps Chanel, rather than Channel, Islands is more appropriate when one considers the amount of wealth managed from there; doubtless perfidy and not perfume is the word which comes to mind at OECD gatherings.

One can only imagine the degree of concern the OECD must have over trust companies, wherever they are located, when it is already exasperated over the ownership (as it puts it) of offshore trusts. Much of the frustration is driven by ignorance on the part of those bureaucrats charged with the task of bringing transparency to these trusts. So for the benefit of my readers, and although I have written on the subject before, I will try to be as transparent as I can about just what a traditional British offshore trust company is, having had a close working relationship with them for more than forty years.

Bankers and Blizzards

Tim Rice and Andrew Lloyd Webber have written very successful musicals over the years, such as Evita, and in 2010 they collaborated on a Wizard of Oz musical. Once, over dinner, Tim Rice told me that he understood that I was “some kind of financial wizard” and I was quick to dispel that notion for him. But there’s no denying the fact that, unlike bankers, trustees (and by extension trust companies) are more of a mystery than musicals and that this mystique can fire the imagination, either positively or negatively. Everyone understands what banking means (although one wonders today if bankers themselves do, after its natural boundaries have been lost in a blinding financial blizzard of complexity) whereas the role of trustee is a function that is unlike any other. It is why the observation has been made that “there is a vast deal of magic in words and the word most highly charged with magic [a phrase used by Walter Bagehot to describe the mystery (once) of England’s royalty] to be found in the world is “trustee”.” So let me shine some of Mr. Bagehot’s light on trust companies and their trustee function.

Trustees need enough common sense and business acumen for a role which involves financial and family affairs, calling for careful management of both assets and relationships with families and others. The trust is an ancient tool which has been continually adapted to changing times and its application in financial structures is, like its potential benefits, manifold. But it is also a tool that never changes shape, unlike car models do, although attempts are being continually made to do just that. Often its activities are necessarily secretive, but when these take place offshore this can add intrigue to the mix. Be that as it may, the central business today of these offshore trust companies is to provide a range of services centred around the management of not only trusts but companies and foundations too, so the activities become less defined than other offshore activities such as insurance, for example.

On a point of criticism that the OECD should heed, many IFCs appoint the same regulator to supervise both banks and trust companies and whilst the distinction between insurance policyholders and bank depositors is clear, the difference between a bank’s obligations to customers and those of a trustee to beneficiaries is not. This doesn’t stop the OECD, as I have said, from seeing trusts as having owners, like deposits in a bank do; this has produced a stumbling block in reconciling trusts with transparency. Nor is clarity advanced by the fact that, traditionally, some insurance companies and banks include trust administration as part of their services and yet many of them do not possess the necessary skills.

Banks and trust companies both manage assets, but the fundamental difference between them is revealed in their respective balance sheets. A trust company isolates its trust assets from its balance sheet but a bank’s audited accounts incorporate customers’ deposits and loans because these have an intrinsic link with a bank’s financial health; this is unfortunate because, as we know, many banks today are in the medical equivalent of intensive care. Fortunately, if a bank does happen to engage in trust work, the auditors record such business as being off-balance sheet activity in recognition and confirmation of the difference between bank depositors and trust beneficiaries.

It follows from this that there is much to think about before and after one becomes involved in the business of professional trust management and which reminds me of what Alexander Pope observed: “A little learning is a dangerous thing, drink deep, or taste not the Pierian Spring”. Those wishing to administer trusts as a profession need to acquire a real thirst for the work – and slake it generously. Unfortunately, some bankers wore blinkers when they jumped on the offshore trust bandwagon that started pitching trusts to its customers several decades ago and many have since paid dearly for the folly of placing more emphasis on profit than precaution; as we can see, however, this policy has extended to their banking business as well and for which a very high price will be paid.

They accepted nominations as trustee without having qualified and experienced staff and stepped into a legal minefield which produced even more opportunities for some lawyers to exploit. Numerous lawsuits were filed and countless out-of-court settlements were reached; a sharp lesson was taught about the difference between contractual obligations to specified parties and those which fell under the rules of equity, when there were claims against the trustee which came from beneficiaries previously only names in a trust deed. The shareholders of these banks soon understood, however, that although trust assets have no direct impact on the balance sheet, costly legal expenses emanating from them do.

A Loaded Gun

We are now in an era where regulation of all financial services is sure to increase but governments must fully understand the distinctiveness of trust work. Sadly, like the OECD with trusts and transparency, many just don’t get it. As a result, unnecessary bureaucratic body blows can reign down on professional trustees while, irrationally, because trust work will be undertaken by a bank or large insurance corporation, regulators are disposed towards a short-circuit approach of the initial licensing process. Haven’t we already seen sufficient evidence in banking to know where such ignorance can lead us? The same attention paid to a bank’s capital should be given to the level of expertise in trustee law, accounting and administration that it offers. Human capital, therefore, replaces any normal capital adequacy rules and equally, of course, just because a trust company’s balance sheet is impressive, it can still mask poor trust fund management. It follows, therefore, that a trust company’s real strength lies in the reservoir of skills at its disposal; this is, of course, a truism for all businesses.

In my mind’s eye every offshore trust company must have a few staff with a minimum of 10 years international experience at a senior level, backed by a professional trust-related qualification; and I would want the shareholders to also display a clear understanding and appreciation of the trust business, with all its demands and risks. The motives of both the shareholders and management should never stray from the three certainties of a trust rule that the nineteenth-century British law reformer Lord Langdale established, by only placing a priority on the certainty of a client’s willingness to pay. The use of offshore trusts (and, increasingly, foundations) has become very popular and like transatlantic travel, they are packaged and promoted internationally. I have even seen advertisements in leading international financial magazines offering offshore trust companies for sale that are “legal, legitimate and affordable”. That tag can apply equally to firearms which, like trust companies, are potentially hazardous in the wrong hands. Amateurs managing trusts can be like children with matches in a fireworks factory, unable to perceive the ever-present dangers. Concealed defects in a trust or foundation deed can have a long incubation period and might not become apparent for some years, by which time the problems may well have been compounded.

Pigs and Perception

Regrettably, the degree of competence, prudence and integrity present only becomes apparent once the client agreement has been signed. What’s more, the degree of safety or skill you can expect to find has no bearing on a trust company’s size: big can be either beautiful or bad and so the value of a referral from a trusted source cannot be emphasised enough. These last few years, however, have displayed the remarkable resilience of small, specialised businesses - not just those dedicated to trust work – many of which are not only small by design but built on expertise. Shareholders in public companies usually don’t know what management is up to (how many disastrous examples has the Great Recession provided?) which is rarely the situation with small, focused businesses when the shareholders, more often than not, are also the managers.

More dangerous, however, than the enthusiastic amateurs are the finless sharks that swim in offshore waters. One of them indirectly turned a short consultancy 15 years ago for me into a salvage operation which led to my permanent move to Panama. One must appreciate that modern advances allow such unscrupulous individuals and companies to operate a large part of their business over the internet. The trouble is that this electronic version of a shop’s front window can be just that and nothing more: a front. Considerable amounts can be spent on a very impressive website but which is only like a set for a Western: facades propped-up by supports. These people have scant regard for the best interests of their victims and whether their company has an issued capital of $2 or $2 million, by skilful presentation they confirm what the seventeenth-century Irish philosopher Bishop George Berkeley, who influenced both David Hume and Immanuel Kant, said: esse este percipi (perception turns into reality).

A fine example of the Bishop’s assertion must be Delaware (besides Wyoming and the other US LLC states) where commercial transparency is taken as a given by most people (let’s call them God’s creatures for the reason which follows) and yet it bears the characteristics of a PIG, such as Jersey in the Channel Islands; this may not be the perception but, conversely, it is the reality. On this point, has, I wonder, anyone ever asked the OECD to distinguish the risk levels between, on the one hand, the invisible-man ownership of Delaware LLCs and, on the other, bearer shares issued in an IFC? I suspect that neither sunlight nor being within earshot would help with the answer but as we know from George Orwell’s Animal Farm, a satire of equal unequals steeped in double standards, the end result seems to be much as it was for Orwell’s pigs and humans: “The creatures outside looked from pig to man, and from man to pig, and from pig to man again; but already it was impossible to say which was which”. In other words, privacy for some, persecution for others, only in this case an acronym is substituted for an animal.

The Romans and my form master at school were right: errare humanum est, perserverare diabolicum: to err is human, to persist in erring is diabolical.

Offshore Pilot Quarterly has been published since 1997 by Trust Services, S. A. and is written by Derek Sambrook

GFSC: New Fee Regulations for 2012

2011-12-15T23:49:00.001Z

The following Regulations are now available to view and will become operational with effect 01 January 2012:

Financial Services Commission (Fees) Regulations 2011

Vistra launches App for iPhone, iPad and BlackBerry

2011-12-06T21:16:00.000Z

The new Vistra App for Apple and BlackBerry devices is now available to download. Giving streamlined access to local offices and key personal contacts, our news feed and details of our services, the App is designed to enhance clients' and business partners' experience of working with Vistra.

The Vistra App gives quick and easy access to your professional contacts in each of our global offices, wherever you are in the world. Icons allow for one-click to directly phone or email contacts or add the information to your address book on your device. Users can select by office, service or name to search for and locate their Vistra contact and then view their email, bio and LinkedIn profiles.

With access to the latest news from Vistra, this App will also ensure you stay up-to-date with news and contact information for the Vistra group, whilst the locations function will allow you to save office details and contact information when travelling.

Browse our services menu and select a solution to see which local office offers that service for quick and easy access to the right professional support. You can select either by office or service to quickly locate the relevant contact for your needs. If you already know the contact you can also search by name.

As well as our new App, we have also launched a new mobile website - m.vistra.com - for use on mobile browsers.

Mauritius: IOC-UNCTAD Expert Group Meeting focuses on vulnerabilities of SIDS

2011-12-05T12:14:00.001Z

A two-day expert group meeting on the theme ‘Addressing the vulnerabilities of Small Island Developing States (SIDS) more effectively’ opened this morning at La Pirogue Hotel in Flic en Flac. A joint initiative of the Indian Ocean Commission (IOC) and the United Nations Conference on Trade and Development (UNCTAD), the meeting is bringing together some 50 participants.

The expert group meeting is providing an opportunity for the IOC and the UNCTAD to enrich the international debate on possible steps and measures, within and outside the United Nations (UN) system, to support the resilience-building efforts of SIDS more effectively. A set of recommendations of interest to relevant intergovernmental bodies and development partners is expected to result from the meeting. These recommendations will be brought to the attention of the Preparatory Committee for UNCTAD XIII (April 2012) towards enhanced UNCTAD action in support of international efforts to address the vulnerabilities of SIDS.

In his opening address, the Minister of Foreign Affairs, Regional Integration and International Trade, Dr Arvin Boolell, said that SIDS are being greatly affected with the advent of several mutations and challenges globally. According to him, efforts have to be intensified so that a specific treatment is given to SIDS. Mauritius, said Dr Boolell, supports the official recognition of the SIDS status within the UN as a category in its own right with particular needs. This much awaited recognition is all the more necessary given the current global climate punctuated by successive economic and financial crises exacerbating the vulnerabilities of SIDS, added the Minister.

‘As small islands far from the incessant interaction taking place on continents, we rely less on our own natural resources and we import ecological notions and tools which we can ourselves create’, noted Dr Boolell. It is therefore necessary to evaluate the advantages, the risks and the challenges associated to the transformation towards a green economy and elaborate a coordinated approach to find sustainable financing which will support such a transformation, he stated, adding that this will imply a reorientation of economic growth towards an efficient, sustainable and more integrated development model.

For his part, the Chairperson of the Council of the IOC and Minister of Foreign Affairs of Seychelles, Mr Jean-Paul Adam, stated that ‘we have been toiling hard for a long time to improve the development context of SIDS.’ In Rio in 1992, the specific vulnerabilities and development needs of SIDS were recognised and today we are still trying to address these vulnerabilities, he observed. ‘SIDS’, he said, ‘can often be considered the barometers for the world economy as they are the first to feel the shocks of the global system’. ‘SIDS are more often than not seen as development success stories but all SIDS are faced with the challenge of ‘where to now?’, said the Minister. ‘The fact that we are still trying to find solutions to the specific development concerns of SIDS displays a wider inability to properly address sustainable development at the global level’, he added.

The first day of the expert group meeting will be followed by a signature ceremony of a partnership agreement to the tune of 10 million Euros between the UN Department of Economic and Social Affairs and the EU Delegation for a project aiming to reduce the vulnerabilities of SIDS and to support efficiently efforts in decreasing small islands’ vulnerabilities by reinforcing their resilience.

Mauritius: FSC launches the Financial Literacy and Young Talent Competition

2011-12-01T22:56:00.000Z

The Financial Services Commission (FSC) launched the Promoting Financial Literacy and Young Talent Competition on 01 December 2011 in line with the Celebration of its 10^th Anniversary.

The objective of the Competition is to raise awareness among young people on Financial Services.

GIIF: Appointment of new CEO

2011-11-30T13:45:00.002Z

Steve Flynn having expressed his wish to focus his career in the area of corporate finance and at his request the Trustees have accepted his resignation with effect from 30 November 2011. Nikhil Treebhoohun has been appointed as replacement Chief Executive Officer with effect from 1 December 2011.

Nikhil Treebhoohun has extensive experience in export development and competitiveness issues gained from being Head of the Trade Section at the Commonwealth Secretariat, Director of the Export Processing Zones Development Authority and Executive Director of the National Productivity and Competitiveness Council in Mauritius.

He studied economics at the London School of Economics, Financial management at the University of New England, and Development Planning Techniques at the Institute of Social Studies. He was also a senior Fulbright Fellow at Georgetown University and is a Fellow of the World Academy of Productivity Science.

Nikhil Treebhoohun has 30 years professional experience of which 13 as chief executive of Intermediary Organisations (Export Processing Zones Development Authority and National Productivity and Competitiveness Council) involved in providing support for export development and productivity enhancement. From 2005 to 2011 he was the Head of the Trade Section of the Special Advisory Services Division of the Commonwealth Secretariat co-ordinating and managing international and county programmes to improve export competitiveness in the areas of professional services, tourism, trade facilitation, national and sector export strategies, and private sector development strategies. He was the project leader for a Commonwealth supported project in 2008 to develop a roadmap for the export of services, including global business services from Mauritius.

Bedell Cristin: Limited Partnerships Bill approved in Mauritius

2011-11-28T13:44:00.002Z

The Limited Partnerships Bill 2011 was approved in Parliament on 19 October 2011 and is expected to receive the assent of the President of the Republic shortly. This new legislation was long awaited by professionals in the funds industry and it will attract significant interest for setting up new fund structures with a limited partnership ("LP") structure. This new vehicle will be useful in ensuring tax efficient and transparent fund structures.

A LP offers flexibility for the general partners in terms of capital and profit distributions and as regards the general administration of the LP structure. LPs are principally established for investment purposes and are a favoured structure for use in private equity and venture capital schemes, collective investment schemes, structuring joint ventures, holding property interests, estate planning, asset protection and tax and financial planning. General Partners have the ability to manage operations from locations other than Mauritius.

A Mauritian LP vehicle may hold a category 1 global business licence issued by the Financial Services Commission ("FSC") and can be structured to benefit from the network of double taxation avoidance agreements which Mauritius has with 36 countries. The LP may seek authorisation from the FSC to operate as a Collective Investment Scheme under the Securities Act 2005 and the Securities (Collective Investment Schemes and Closed-End Funds) Regulations 2008. Other regulatory consents may be required depending on the type of activities the LP will be undertaking.

Every general partner and limited partner of a LP structure holding a category 1 global business licence under the Financial Services Act 2007 will be liable to income tax in respect of its share of income in that LP. However, a Mauritian LP may hold a global business licence and may elect to be taxed in Mauritius and thus take advantage of the Mauritius tax treaty benefits.

A LP vehicle can be registered with or without legal personality with the Registrar of Limited Partnerships who is also the Registrar of Companies in Mauritius.

The name of a LP must end with the words "Limited Partnership", the abbreviation "L.P." or with the designation "LP". The LP must have a registered office in Mauritius which may, but need not, be its principal place of business and it is not mandatory to have a Mauritian general partner. However, a LP without a Mauritian general partner must at all times have a registered agent in Mauritius.

A limited partner may not participate in the business of the LP and the legislation sets out a non-exhaustive list of activities where the limited partner will not be considered as participating in the management of the LP.

Access to the records of the LP on the Register of Limited Partnerships may only be given to an officer as defined in the legislation, the management company appointed by the LP or its registered agent where that LP holds a global business licence. However, any person may request the Registrar of Companies to provide the name of the LP and its registered office and the name and address of any management company or registered agent appointed by the LP as the case may be.

A general partner may also be a limited partner at the same time in the same LP.

The legislation allows flexibility as to the form of limited partners’ contributions which may be made in or by money, loan, property and services.

The situations where a LP may be dissolved are listed in the legislation and the court has an overriding power to order the dissolution of the limited partnership on the application of any partner, creditor or the Registrar. Upon dissolution, the affairs of the LP are wound up by the general partners unless a liquidator has been appointed. The law sets out a priority order under which the assets of the LP are distributed upon its dissolution.

Tackle Tax Havens

2011-11-25T22:25:00.001Z

Tax havens are a major part of the tax evasion problem – and these new findings come as the Tax Justice Network launches Tackle Tax Havens, a new campaign aimed at the general public that highlights the critical role that these secretive states play in corrupting the global economy.

The issue of tax collection is rising fast up the political and social agenda, as countries across the world make deep cuts in public spending and increase taxes in ways that hurt the poor and the middle classes the most.

This new research demonstrates how important it is to tackle tax evasion and the tax havens that help wealthy individuals and organisations escape from contributing to the services that directly benefit them - from the health and education systems that support their workforces, to the roads that ship their goods to markets, to the courts of law that enforce their contracts or to the police who protect their property.

But tax havens are not just about tax: they cause colossal damage on many fronts. Tackle Tax Havens aims to arm the general public with a solid working knowledge of the offshore system and the problems it causes -- and to show what we can do about it.

Other key findings of the new report include:

Europe as a whole loses the equivalent of 87% of its total healthcare budget to tax evasion, while Africa loses 98% and South America 139%
Over the 145 countries surveyed, an unweighted average of 110% of the annual healthcare budget was lost to tax evasion
119 of the 145 countries surveyed are losing over half of their healthcare budget to tax evasion
In 67 countries, tax evasion losses are larger than their entire health budgets
In Bolivia, tax evasion is more than four times as large as that oil rich country's health spending. In Russia, it is more than three times the size 
More than $1 in every $6 earned in the world is not subject to tax because those earning it have deliberately ensured that their income is hidden from the world’s tax authorities 
In Greece and Italy, where economic collapse currently looks possible, more than €1 in €4 is hidden in the shadow economy

QUOTES:

John Christensen, Director of the Tax Justice Network:

“Tackling tax havens is a crucial part of ending the culture of tax evasion. Tax evasion is crippling public finances across the world but governments aren’t doing nearly enough to end this cancer.”

“Tax havens are engaged in economic warfare against the tax regimes of sovereign countries, and these estimates reveal the human cost in terms of the impact on health services.”

Richard Murphy of Tax Research UK, who undertook the research for the Tax Justice Network:

“New data from the World Bank published last year on the size of countries’ shadow economies let us prepare this estimate of tax lost to criminal tax evasion annually. The findings add a new policy agenda to public debate on the world’s financial crisis. For example, Italy loses €183 billion to tax evasion a year. Its current debt of €1.9 trillion represents just over 10 years tax of tax evasion on this basis. If only more had been done to tackle rampant tax evasion, Europe would not be facing a crisis today.”

“Tax havens can be beaten using three simple measures. First we demand that all tax havens put details of the ownership of all companies and trusts located there, and the accounts of those organisations, on public record. Second we demand that all multinational companies publish accounts that reveal their use of tax havens. Last, we believe that all tax havens should be required to exchange information each year on the income recorded within them belonging to the citizens of other countries with the places where those people really live.”

  “These measures would shatter the secrecy of tax havens for good, and that means those committing tax crimes will no longer have places to hide the proceeds of their crimes. Nothing could make a bigger contribution than this to solving the world’s financial crisis right now.”

Click here to see the report

STEP establishes Private Banking & Wealth Management Group to demystify private wealth to government

2011-11-24T22:23:00.001Z

STEP – The Society of Trust and Estate Practitioners - has established a Private Banking & Wealth Management Group to discuss how best to demystify the private wealth sector and explain its benefits to policymakers in government. The working group has the support of advisory firms and private banks keen to ensure that the value of private wealth is better understood in Westminster circles.

David Harvey, Chief Executive of STEP, said “The private wealth sector needs to have a united voice with government, and one which encourages growth for everyone’s benefit. It is vital that the government understands our sector brings with it a significant number of jobs, inward investment and tax revenues.

These discussions will thrash out how advisors, private banks and wealth managers can collectively improve the reputation of the private wealth sector and best represent the private client. This will build on STEP’s policy successes in recent years, and focus on assisting the government with tax, regulatory and competitiveness issues.”

The Private Banking & Wealth Management Group will discuss how to dovetail with the existing policy work STEP undertakes in a mutually beneficial partnership. The aim is to bring together the various corporations and institutions active in private wealth management to create a single voice to governments and other interlocutors on policy issues and a provide a more powerful footprint.

The partnership is a logical move for STEP, given the strong business links between advisors, private banks and wealth managers, and STEP’s substantial policy experience. The group is seeking members around the world, and has been spurred-on by the ever more demanding policy environment, including initiatives affecting the market and private clients such as FATCA and the RDR in the UK.

STEP already engages widely with policymakers in the UK, EU and the OECD, and a recent World Bank report encouraged policymakers to seek active partnership with STEP in order to ”help to ‘demystify’ the services and products” of the private wealth sector. STEP will also be representing its members at the global anti-money laundering summit hosted by the Financial Action Task Force (FATF) in Milan on 5-6 December, where they will be discussing issues around collecting information on beneficial owners.

Mauritius seeks data protection accreditation with European Union

2011-11-24T12:55:00.001Z

A Workshop on Mauritius Data Protection Accreditation with the European Union was held today at La Petite Canelle, Domaine Les Pailles in the presence of the Minister of Information and Communication Technology, Mr T. Pillay Chedumbrum, the Attorney General, Mr Y. Varma, the Ambassador of the European Union, Mr A. Mariani, and the Data Protection Commissioner, Mrs D. Madhub. The workshop was organised by the Data Protection Office, Prime Minister’s Office, in collaboration with the Delegation of the European Union to Mauritius.

Mauritius is presently seeking accreditation with the European Commission for Mauritius to be known as an “adequate country”. The endeavour will enable the country to gain recognition in the field of data protection and step up trading relations with international partners in off-shore investment services and business process outsourcing. The appropriate legislation will also promote e-government and e-commerce in Mauritius as the availability of legal protection of personal data will encourage consumers and businesses to transact online. The initiative is in line with Government’s vision to make Mauritius a regional knowledge hub and a strategic ICT destination.

To that effect, the local ICT and Data Protection legal and regulatory framework as well as licensing and regulation standards have to be reviewed and revised in line with international best practices and changes resulting from technological convergence for modern competitive ICT markets as well as in compliance with the European Union directives for data protection. An EU Consultant is currently in Mauritius to advise on the review of the ICT legislation and drafting amendments and recommendations to ensure the legislation is up to international standards.

The objective of the workshop held this morning was to enable stakeholders to express their concerns, views and proposals to the consultant on the current legal framework for data protection in Mauritius for its compliance with EU standards.

In her speech for the occasion, the Data Protection Commissioner stated that Government has the duty to regulate cyberspace. Mrs Madhub highlighted the importance of building a data protection regime fitted to our new age, adding that the focus should be on those requirements which will really enhance legal certainty. ‘Our aim should be to preserve freedom of information and data flows to create a level playing field for businesses when it comes to data protection obligations and protect the personal data of individuals’ she said.

For his part, the Attorney General said that the Law reform Commission in its last report concluded that there was a need to review the constitutional right to privacy in our constitution in order to include data protection as one of the essential components of the rights to privacy. According to Mr Varma, the Data protection rights should be built on three pillars namely the right of individual to be forgotten, transparency and greater clarity as well as privacy by default.

The Minister of Information and Communication Technology said while our society is ever more dependent on continuous and widespread use of ICT, the right to the protection of personal data is now explicitly recognised internationally as a human right. He added that the key focus of the current review of the Data Protection Act is to modernise our data protection law in order to face growing challenges of new information technologies and globalisation.

FSA appoints Sir Nicholas Montagu as chairman of the Financial Ombudsman Service

2011-11-23T22:31:00.001Z

The Financial Services Authority (FSA) has today announced the appointment of Sir Nicholas Montagu KCB as the new chairman of the Financial Ombudsman Service (FOS). The service settles complaints between consumers and businesses providing financial services.

Sir Nicholas is currently the chairman of the Aviva UK Life With-Profits Committee, a director of the Pension Corporation and is a former chairman of the Board of Inland Revenue.

Lord Turner, FSA chairman said:

“Nick has had a distinguished career and brings a wealth of experience in demanding board positions. His predecessor, Sir Christopher Kelly, steered the Ombudsman Service through challenging periods, and the next few years will be no easier. This role needs a customer-service champion to help shape the Ombudsman's future role in the new regulatory structure, and that is what we have with Nick.”

Sir Nicholas Montagu said:

“I am delighted to have been appointed chairman of the Financial Ombudsman Service. It is a strong and innovative organisation, which over the last ten years has been recognised for the increasingly significant role it plays. I look forward to working with Natalie Ceeney and her colleagues as we meet the challenge of providing an ever-improving service, with customer demand set to reach record levels.”

Economic Partnership Agreement: Next round of negotiations in Mauritius

2011-11-23T22:26:00.000Z

Mauritius will host the next round of negotiations on the Economic Partnership Agreement (EPA) between the Eastern and Southern African Group (ESA) and the European Union (EU) from 28 to 30 November 2011.

The negotiations will be preceded by the Technical Meeting on Rules of Origin scheduled for 24-25 November, and the Technical Meeting on all clusters, that is, development, trade in goods, services, agriculture, dispute avoidance and trade-related issues, on 26-27 November.

Around 40 delegates from the ESA region and the EU will be in attendance. The participating ESA countries include Comoros, Ethiopia, Madagascar, Malawi, Seychelles, Sudan, Zambia and Zimbabwe.

The Mauritian delegation will be led Mr S. Boodhoo, Deputy Director, International Trade Division, Ministry of Foreign Affairs, Regional Integration and International Trade, while Mr J. Wunenburger, Head of Unit on Economic Partnership Agreements, will lead the EU’s delegation.

A joint EPA draft text containing proposals by the EU and the ESA group will constitute the basis for the negotiations. It is expected that the Mauritius meeting will close gaps on many issues such as agriculture, trade facilitation, competition policy while making progress in other issues including services and investment.

It is recalled that an Interim EPA was signed in Mauritius in August 2009 covering trade in goods, development cooperation and fisheries. The Interim EPA was crucial to safeguard Mauritius’ preferential access on the European market in traditional sectors such as sugar, textiles and fish and fish products in the light of the expiry of the World Trade Organisation’s waiver for the Cotonou Trade Provisions in December 2007.

Negotiations are now being pursued to conclude a full EPA which will encompass other areas, including trade in services and trade-related issues such as investment, competition policy and trade facilitation.

Jersey listing capabilities for Chinese and Indian firms highlighted at Paris conference

2011-11-22T23:19:00.000Z

The advantages of using Jersey listing vehicles as part of raising capital in Western markets will be promoted to top-level Chinese and Indian business professionals at a conference in Paris this week.

Jersey Finance are sponsors of the prestigious International Capital Conference 2011 and will be hosting a roundtable session entitled ‘Jersey for listings – an essential guide.’ David Myatt, Country Head of BNP Paribas for the Channel Islands and Isle of Man will moderate the session and he will be joined by Raulin Amy, Partner at Ogier, Nick Harriss, Director of Corporate Finance at Allenby Capital, London and Zhaoan Li, Jersey Finance’s Head of Greater China Business Development. Mr Amy is also participating in a panel debate entitled ‘IPOs for Emerging Economy Companies’ that will set the scene for the JFL roundtable.

The conference, which has attracted over 300 delegates, is organised by the Boao Forum for Asia in association with the Federation of Indian Chambers of Commerce and Industry (FICCI) and Cavendish Group and is hosted by the Ministry of Economy, Finance and Industry in France. It has been described as ‘the premier business event for western companies looking to do business with ambitious Chinese and Indian companies.’

As well as senior figures from the Chinese Government, industry and finance, this year for the first time the organisers will welcome 30 Indian chief executives led by FICCI.

Geoff Cook commented: ‘One of the features of the finance activity in Jersey in recent years has been the increasing use of our jurisdiction to incorporate listing vehicles. In the 12 months to June this year for example, Jersey companies that floated on the London Stock Exchange and AIM raised £8 billion, which was over half of all new capital raised on London markets during that time.’

‘A proportion of the interest in Initial Public Offerings (IPOs) on the London markets is from the high growth economies, including China and India, and this conference provides us with an ideal platform to inform practitioners about Jersey’s strengths and capabilities as a jurisdiction for listings.’

Mauritius: Financial Services (Consolidated Licensing and Fees) (Amendment) Rules 2011

2011-11-21T23:57:00.001Z

FSC Rules made by the Financial Services Commission under Section 93 of the Financial Services Act 2007

Corporate and Trust Service Provider
Code	Licence/Approval	Relevant Section of FSA 2007	Processing Fee (US$)	Annual Fee (US$)
FS-3.1A	Management Licence	S77	500	5,000
FS-3.1B	Management Licence (Qualified / Corporate Trustee only)	S77	500	5,000
Global Business Licence
F.S-4.1	Category 1 Global Business Licence	S72	500	1,750
F.S-4.2	Category 2 Global Business Licence	S72	100	235*

* This amount excludes the annual registration fee of $65, or such other fee as the Registrar of Companies may determine, payable to the Registrar of Companies.

First Annual Licence Fee
Months in which application is made	GBC 1 (US$)	GBC 2 (US$)	Nominee (US$)	Management Licence (US$)
July - September	1,750	235	350	5,000
October – December	1,315	175	265	3,750
January – March	875	120	175	2,500
April - June	440	60	90	1,250

Charges

Description	Fees and Charges Payable for US$
If Annual fee paid on	GBC 1	GBC 2
Due Date	1,750	235
Within 1 month after due date	1,925	260
After 1 month, but within 3 months after due date	2,190	300
After 3 months, but within 6 months after due date	2,625	350
After 6 months, but within 12 months after due date	3,500	470

These Rules shall come into operation on 01 January 2012.

Made by the Financial Services Commission on 21 November 2011.

UK: Independent study on general anti-avoidance rule published

2011-11-21T23:47:00.001Z

Graham Aaronson QC has today set out his recommendation to the Government for the introduction to the UK tax system of a narrowly focused general anti-abuse rule (GAAR).

The recommendation is published in the final report of Mr Aaronson’s eleven month review of the feasibility for the UK tax system of a GAAR. With the advice of a committee of tax experts, he has concluded that introducing a narrowly-focused GAAR would:

deter abusive tax avoidance schemes;
contribute to providing a more level playing field for business;
reduce legal uncertainty around tax avoidance schemes;
help build trust between taxpayers and Her Majesty’s Revenue and Customs (HMRC); and
offer opportunities to simplify the tax system.

However, it warns against the introduction of a broad spectrum general anti-avoidance rule.

The report recommends that a GAAR should initially apply to the main direct taxes – income tax, capital gains tax, corporation tax, and petroleum revenue tax, as well as national insurance contributions. It sets out in detail how a GAAR could be introduced, and includes an illustrative draft rule. It also includes a summary of the views of representative bodies in the tax sector.

Speaking in response to the publication of the review’s recommendations, David Gauke, Exchequer Secretary to the Treasury, said:

“The Government is committed to tackling tax avoidance. We asked Graham Aaronson to consider whether a UK GAAR could deter and counter tax avoidance, while providing certainty, retaining a tax regime that is attractive to businesses, and minimising costs for businesses and HMRC. We welcome the completion of his study and will carefully consider its recommendations against these criteria, alongside the feedback from businesses and tax professionals that we look forward to receiving.”

Publishing the report, Graham Aaronson QC said:

“Responsible tax planning is an essential feature in a complex tax regime, such as the UK’s. But artificial and abusive tax avoidance schemes are widely regarded as an intolerable assault on the integrity of the tax regime. A general anti-abuse rule narrowly targeted to deter such schemes, while not affecting responsible tax planning, should lead to a fairer, more principled and ultimately simpler tax system; and I strongly recommend that such a rule should be introduced into our tax laws.”

The Government will consider the report in detail and the extent to which the proposals could add to HMRC’s existing legislative and administrative approaches and further reduce levels of tax avoidance. The Government will discuss the implications of the proposed rule with business and tax practitioners and respond fully at Budget 2012, setting out its plans for further, formal public consultation, if appropriate.

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Latest EU report on Funds Directive is positive for Jersey

2011-11-21T22:17:00.000Z

Jersey Finance says it is encouraged by the contents of the European Securities and Markets Authority (ESMA) report on the Alternative Investment Fund Managers Directive (AIFMD) which was published last week and contains its final recommendations to the European Commission.

There has been a change in the wording between the earlier draft and the final report in one important aspect in respect of ‘third countries’, the term used to describe jurisdictions outside of the EU. Though the regulatory standards remain high and robust, the change is positive for ‘third countries’ since it makes it less onerous to achieve compliance. The Directive will require supervisory co-operation and exchange of information agreements between the authorities of EU member states and non EU countries.

Heather Bestwick, Technical Director of Jersey Finance, comments:

‘It is broadly positive throughout and Jersey remains on track to meet the criteria necessary for the funds industry to continue to participate when the new EU regime for funds is implemented. We are studying the detail but our first impressions are that there is nothing new in ESMA’s final report to give us concern.

‘Naturally there is still considerable work to do but it remains our intention to offer investors an ‘opt in’ AIFMD compliant regime while retaining flexibility for managers whose primary source of institutional capital is outside of Europe.’

EMSA’s latest document is the final technical recommendations to the European Commission who are expected to prepare the implementing measures on the basis of the report’s advice.

Seychelles: Technological Innovation Changes Driving Financial Services

2011-11-18T22:16:00.001Z

Central Bank Anniversary Lecture

“Technological Innovation Changes Driving Financial Services”

Opening Address by President James A Michel

18 November 2011

Governor of the Central Bank,

Mr. Arun Jain, Chairman and CEO of Polaris Software Lab,

Your Excellencies,

Distinguished guests,

Ladies and Gentlemen,

The theme, “Technological Innovation driving Financial Services”, chosen by the Central Bank to mark its seventeenth anniversary is both timely and opportune. Like many of you I have followed with much interest the fascinating innovations that have occurred over the years in the development of financial services, as a result of technological advances.

Our economy has made tremendous progress in recent times despite or, perhaps, because of, the enormous challenges that we have faced. My Government and the Central Bank have made significant strides to improve the regulatory framework in which financial institutions operate. We will continue to ensure that our institutional and legal frameworks remain up to date with the financial innovations.

I have no doubt that all of you present here today share my appreciation of how important the financial sector is to our economy. In Seychelles this sector directly contributes 4.2 per cent to Gross Domestic Product. This makes it one of the key sectors of the economy after tourism and fisheries. The sector today employs over 1,100 persons, that is, 2.4 per cent of Seychelles’ workforce. Tax revenue from the sector in 2010 amounted to R137 million, which was 17 per cent of total tax revenue. These are not insignificant.

Ladies and gentlemen, in this day and age everything revolves around technological innovations. Failure by any business or market player to appreciate this fact is at their own peril. We have all witnessed, time after time, how long-established, reputable businesses have been left behind or failed by virtue of being too slow to grasp the benefits of financial innovation. Fully aware of this, a number of recent ventures and enterprises in Seychelles have shown acumen by better adapting to technological advances.

I applaud the efforts of our public institutions which have grasped technological changes, and which have already brought about significant improvements in the delivery of their services. On the occasion of its anniversary lecture, I take the opportunity to congratulate the Central Bank for being one of our institutions that has adopted technological advances to its benefit. The recent investment of the CBS in its integrated CORE banking platform was a major breakthrough for the Bank. This solution has allowed the Bank to, among other things, increase the volume of transactions it processes, reduce risks associated with a multitude of computer software, minimize security risks, provide real-time balances to Government and commercial banks, and enable “straight-through” processing. I also note with encouragement the various forthcoming projects envisaged by the Bank, including very shortly, its initiative for the automation of cheque clearing, which will mean that the exchange of paper cheques between banks for the settlement of personal and business transactions will soon be a thing of the past.

Today, I also want to recognize the significant contribution that financial institutions, in particular commercial banks, have made and continue to make to our economy. However, when it comes to innovation I cannot say that I am satisfied with what the institutions are offering to their clients. For instance, today not one single bank in Seychelles offers full Internet banking services to their clients! This is unacceptable in this day and age. I am encouraged, however, that some of our banks have indicated that this will be forthcoming. I hope that this will happen sooner rather than later.

I want to take this opportunity to appeal to our financial institutions, especially the commercial banks to do more to help our economy. We, as a nation, are becoming more sophisticated by the day, and the level of services that banks provide is, frankly, not up to expectations. When we ask foreign investors to come to our shores we want quality investors, but they will turn their backs on us if the quality of services that our banks provide are not up to standard. With technological advances the tools are there to improve the quality of services. But having said that nothing can replace the human touch. This is why, as much as we want to promote technology in banking services, banks need to keep investing in their human capital.

Ladies and gentlemen, technological innovation presents us with many challenges but also with exciting and rewarding opportunities. Let us make the most of the great opportunities at hand. They will be significantly enhanced when Seychelles’ submarine cable becomes operational next year. It will provide a major boost to our country’s endeavour to improve our communications capability. The submarine cable will bring Seychelles so much closer to financial innovations through a significant increase in Internet access and speed and higher volumes of e-commerce at substantially reduced costs. This project required significant resources both from Government and the private sector. It exemplifies the type of public-private partnership that is the hallmark of the New Seychelles. Like you all, I look forward eagerly to the completion of this project, and the benefits that it will bring to our country.

Ladies and gentlemen, as we focus on the subject of technological change and how it is driving financial innovation, the world financial system is in turmoil. As many countries, large and small, struggle to cope with the painful effects of this crisis, Seychelles, despite many challenges, remains resilient and continues to cope remarkably well. We have shown that having the right policies and right economic base firmly in place are the most effective tools in facing the harsh reality of such crises. I believe that, similarly, those businesses which invest wisely in technology and in human capital will be better placed to face the challenges of competition, market access, service delivery, sourcing etc. and will stand to gain most through financial innovation.

I cannot conclude without reiterating my wish for commercial banks to do more to develop our economy through provision of more credit, especially to small and medium-size enterprises. We have a duty to empower our people. We have a duty to help them better their situation, to do business, expand and create more wealth, more opportunities… But they cannot do so without access to affordable credit. Credit remains one of the fundamental drivers of economic growth. Banks can and must reduce interest rates further. Bank spreads today are higher than they were before we implemented our economic reforms three years ago, one of the only few black spots when we look at our overall performance during that period. So I urge banks, once again, to go back to the drawing board and contribute more to our economy through more affordable lending rates. At the same time let us do more to encourage the savings culture through more attractive savings rates.

Ladies and gentlemen, technological innovation is one of the best things that happened to mankind, and we have to make the most of it. We are part of the process. We have to own it and drive it. We have to be forward-looking – a nation on the march to progress. We cannot afford to be complacent – we have to accept and adopt innovation. It is the key to our survival and progress as a nation.

I thank you and wish you fruitful deliberations.

Jersey FSC Consultation on Changes to Customer Due Diligence Measures

2011-11-17T22:22:00.000Z

Today, the Jersey Financial Services Commission (the “Commission”) has issued a Consultation Paper on proposals to amend some specific provisions in the Money Laundering (Jersey) Order 2008 (the “Money Laundering Order”) and AML/CFT Handbook for regulated financial services business (the “AML/CFT Handbook”) that deal with customer due diligence measures.

The Paper has been published ahead of a wider review of the basis for, and scope of, customer due diligence concessions in the Money Laundering Order that will take account of the imminent revision to international standards set by the Financial Action Task Force.

Amongst other things, proposals in the Paper will:

Clarify the additional customer due diligence measures that must be taken when a relationship with a customer is established remotely - where the customer is not seen - and money laundering and terrorist financing risk is considered to be higher than the norm.
Provide additional guidance on identifying countries which may be considered to present a higher risk of money laundering or terrorist financing.
Specify some additional due diligence measures to be applied where a customer has a connection to Iran or North Korea, and where a customer is considered to present a higher risk as a result of a connection to Bolivia, Burma (Myanmar) Cuba, Ethiopia, Kenya, Nigeria, São Tomé & Príncipe, Sri Lanka, Syria and Turkey.
Extend the circumstances in which it may be appropriate to simplify customer due diligence measures because the risk of money laundering or terrorist financing occurring is considered to be less for a particular customer, product or service.

India: AAR orders capital gains exemption for Ardex Investment

2011-11-15T23:15:00.003Z

The Authority for Advance Rulings (AAR) in the case of Ardex Investments Mauritius Ltd. (the applicant) held that capital gains on the proposed sale of shares of an Indian company to the foreign company is not chargeable to tax in India in view of Article 13(4) of the India-Mauritius tax treaty.

Mauritius - Budget 2012 Highlights: Boosting investment & growth & stimulating financial services

2011-11-15T10:23:00.002Z

To provide leadership in investment and job creation against a background of crisis, the 2012 Budget provides for the setting up of a Resilience Plan for the next three years. It will cover all enterprises with focus on SMEs, infrastructure development and job creation. The main strategies of the Resilience Plan are:

Supporting Enterprises at the Microeconomic Level. This will involve the creation of a National Resilience Fund (NRF) of Rs 7.3 billion that will be used both as a contingency fund to strengthen the resilience of the economy and as a rainy day fund to shore up public finances.
More Government Spending on Infrastructure. Some Rs 21.2 billion will be injected in the economy for key infrastructure projects and as a lever to increase investment, employment and growth during the crisis.
Financial System Stability. Measures will be based on IMF recommendations on how to ensure a well-coordinated watch on the stability of our financial system.
Coherent Macroeconomic Response. It aims at implementing mechanisms to ensure coherence in fiscal and monetary policies.

Tax reforms

The 2012 Budget also makes provision for reforms in tax policies in order to promote investment. These changes include:

The abolition of the solidarity tax on dividends and interest.
The abolition of the capital gains tax on immovable property.
The abolition of the municipal tenant’s tax. Government will disburse some Rs 175 million rupees per year to the municipalities as compensation for the revenue foregone.
The removal of land transfer tax on the sale of immovable property by financial institutions relating to debt recovery.
The environment protection fee to be levied only on hotels, guest houses and tourist residences that obtain profits.
The tax holiday of Freeport operators to be carried forward indefinitely.

Financial services

In a bid to stimulate the sector, the 2012 Budget proposes strong support to the financial services industry to weave new business links with the rest of the world, comply fully with international norms and diversify its products. To this end, a legal framework to promote Foundations, Private Occupational Pensions and new concepts of Trusts will be set out. These aim at significantly widening the spectrum of financial vehicles in our jurisdiction.

Seychelles committed to applying OECD rules but asks for fairness in international taxation regulations

2011-11-11T21:21:00.000Z

The following is a statement issued yesterday by the Minister for Foreign Affairs, Jean-Paul Adam:

“Following the recent move by the G20 to publish a list of suspected tax havens, among which Seychelles is named, the government of Seychelles wishes to re-iterate its unwavering commitment and engagement to implementing internationally agreed tax standards within local legislation.

“The government has been steadfast in its ongoing cooperation with the Organisation for Economic Co-operation and development (OECD) and while there are outstanding legislations to implement, this delay should in no way be construed as a lack of political will.

This delay has instead been due to the fact that Seychelles has had two national elections in 2011 and as such the National Assembly has had to contend with numerous interruptions.

“Throughout this entire process, the OECD has been kept fully abreast of the situation with full transparency, and as such the government feels that to be blindly condemned by the G20 is detrimental to the process.

“The government feels that the recent listing of countries deemed non-compliant only succeeds in diverting attention away from the larger issues; in order to achieve true fairness in taxation, it is imperative that the too often ignored fact that the majority of tax evasion is actually committed within OECD countries.

“It is easier to say that small jurisdictions must improve their legislation to be more compliant, something most are striving hard to do, but what is much harder to say is that there are a large number of influential companies already exploiting existing loopholes within OECD jurisdiction that need to be tackled.

“Small Island Developing States are faced with numerous well-known capacity challenges and constraints and we hope that the G20 will be more constructive in its reflections in the future. Despite the G20’s unequal approach, the government does in fact welcome more regulation on international taxation regimes when done in a fair and consistent manner.”

Worldwide tax reforms continue to encourage a return to growth and sustained revenuues

2011-11-10T23:14:00.000Z

Governments continue to reform their tax systems, according to a new report by the World Bank, IFC, and PwC. In all, 123 out of 183 economies measured have made significant regulatory changes since 2006 to ease tax burdens for small and medium-sized firms, as governments seek to increase business registrations and relieve the impact of the global economic downturn.

Launched today, Paying Taxes 2012 finds that 33 economies made it easier and less costly to pay taxes from June 2010 through May 2011. The most common tax reform was the increased use of online systems to facilitate tax compliance, introduced in 23 economies. Electronic filing and payment reduces the amount of paperwork, allows a more targeted and risk based approach to audit and compliance, and can help eliminate corruption.

Paying Taxes 2012 measures all mandatory taxes and contributions that a medium-sized firm must pay in a given year. Taxes and contributions measured include the profit or corporate income tax, social contributions and labour taxes paid by the employer, property taxes, property transfer taxes, dividend tax, capital gains tax, financial transactions tax, waste collection taxes, vehicle and road taxes, and other small taxes or fees.

The report found that the Total Tax Rate for small and medium-sized companies has fallen by 8.5 percentage points since 2006, more than one point per year. During that period, the time it takes to comply with business taxes declined by more than a day a year (54 hours), and the number of payments required dropped by five.

"The high number of reforms in tax administration shows that improving the tax system for businesses is high on the agenda for governments,” said Augusto Lopez Claros, Director, Global Indicators and Analysis, World Bank Group. “If they create a system that is easy to comply with, it is more likely that businesses will operate in the formal economy and provide a more sustainable source of revenue than debt or aid."

Globally, the average Total Tax Rate for a small to medium-sized company is now 44.8 percent of its commercial profit. Complying with tax regulations takes an average of 28.5 payments and a total of 277 hours.

"Governments have it in their control to develop tax systems that foster business investment and make the private sector an engine for a return to economic growth and prosperity," said Andrew Packman, a tax partner at PwC UK. "Reducing rates and making the compliance less burdensome helps companies focus on making their business grow.”

HSBCnet Mobile: Banking in the palm of your hand

2011-11-10T08:31:00.005Z

Log on to www.hsbcnet.com/mobile from your supported mobile device

HSBC are pleased to introduce HSBCnet Mobile, a convenient new way to access a select set of HSBCnet services using your supported mobile device.

The streamlined interface has been specifically designed for use on certain mobile devices. Currently available as a complimentary value-added service, you can access HSBCnet Mobile using your device’s web browser – no applications or downloads are required.

Three features are available on HSBCnet Mobile in line with your entitlements:

Checking account balances and statements
Authorising payment instructions (Priority Payments, Inter-Account Transfers and ACH Credits/Debits only)
Receive notification of payments requiring authorisation via My Alerts

Please note: a Security Device is required to access HSBCnet Mobile. HSBCnet Mobile is not available to Smart Card users. HSBCnet is currently in the process of upgrading Security Devices for our customers. If you have already been contacted to upgrade your Security Device, we encourage you to do so immediately in order to use HSBCnet Mobile. For more information, please review the resources in the Information Centre, available after logging on to the main HSBCnet site.

HSBCnet Mobile: supported devices
Device type	Operating system
Android	Android 2.2 and 2.3
iPhone	iOS 3 and iOS 4
BlackBerry	OS 5.0 and 6.0

About HSBCnet Mobile supported devices

HSBCnet has verified the compatibility of these mobile devices and operating systems for use with HSBCnet Mobile. Please note that HSBCnet functionality may perform normally using other operating systems, but compatibility cannot be confirmed at this time.

HSBCnet Mobile will support additional mobile devices in the future. For more information about your device, please refer to your user manual or contact the manufacturer for assistance.

Try HSBCnet Mobile for yourself today via your mobile device atwww.hsbcnet.com/mobile. For more information about how to use HSBCnet Mobile, refer to the training presentation or contact your HSBC representative.

Once you have tried HSBCnet Mobile, please let us know what you think using our online survey. Your feedback is very important as we continue to improve the service and add additional features. These resources are also available after logging on to HSBCnet.

***Please note: These links will open in a separate window.

Maintaining a secure HSBCnet Mobile experience

As with the main HSBCnet site, HSBCnet Mobile has incorporated several key security measures to help protect your information:

Security Device: Your Security Device is required to log on to your HSBCnet profile and for any subsequent transaction authorisations.
Encryption: HSBCnet Mobile is encrypted using Secure Socket Layer (SSL) Encryption technology (SSL v3 – 128 bit).
Session time-out: Similar to using HSBCnet from a computer, if you forget to log out, or your mobile device remains inactive for a period of time, HSBCnet Mobile will log out automatically.

In addition to your obligation to comply with the general HSBCnet Security Procedures, you must ensure you also comply with the additional security requirements* which are in relation to HSBCnet Mobile on your mobile device, and include:

Do not store your HSBCnet user or profile details on your mobile device.
Ensure your mobile device is updated with the latest anti-virus and anti-spyware software.
Avoid sharing your mobile device with others.
Avoid using other mobile devices not on the approved list to access HSBCnetMobile.
Do not leave your mobile phone unattended after logging on to HSBCnet Mobile.
For added peace of mind, click the ‘Logout’ button when you are finished with HSBCnet Mobile.
To prevent unauthorised access to your mobile device, enable its automatic passcode lock feature.
Use default browsers originally provided with your mobile device.
Avoid using an “unlocked” mobile device or a device with any unauthorised modifications when using HSBCnet Mobile.
Avoid installing applications on your mobile device from unknown sources.
When connecting to a wireless network using your mobile device, use only trusted networks or service providers and enable additional security protection, such as Wi-Fi Protected Access (WPA), if possible.

For full details of your security obligations when using HSBCnet Mobile, please refer to the HSBCnet Security Procedures.

Paul|Weiss: IRS Proposes Favorable Changes to Sovereign Wealth Funds’ U.S. Tax Exemption

2011-11-09T23:45:00.002Z

The IRS issued proposed regulations last week that will make it easier for sovereign wealth funds and other entities controlled by foreign governments to invest in private funds without jeopardizing their exemption from U.S. federal income taxation under Section 892 of the Code.

Full PDF

Mauritius - Budget 2012: An Overview

2011-11-07T10:45:00.001Z

“Growth for the greater good and seizing all opportunities to create more wealth for our country and a better life for all our citizens”, this in the words of the Vice-Prime Minister and Minister of Finance and Economic Development, Mr Xavier Luc Duval, is the underlying the philosophy of the 2012 budget. The budget was presented to the National Assembly on 4 November.

The budget outlines an intensive approach for export promotion and market development. Besides promoting the opening of the economy it also makes bold adjustments to tax policy which promotes rather than inhibits growth and social justice. The budget announces institutional reforms to further embed efficiency and good governance.

The economy is forecast to register a growth rate of 4 percent. The budget will raise revenue of Rs 76.9 billion of which Rs 16.4 billion from income taxes, Rs 44.4 billion from indirect taxes, and Rs 3.4 billion rupees from grants and other budget support.

Expenditure will amount to Rs 90.5 billion and as a result, the budget deficit for 2012 will be 3.8 percent of GDP. Government is reducing the public sector debt to GDP ratio to 54.1 percent in 2012 and is well on course to the 50 percent debt to GDP objective set in the law and to be achieved by 2018.

In a bid to boost Mauritius as a quality destination for foreign direct investment aggressive campaigns will be held in traditional markets in Europe and the USA. More focused promotion campaigns are scheduled in India, China, and Africa, where the potential is unfolding at a rapid pace.

As regard the internationalization of the economy two roving ambassadors will be appointed for Africa and the Indian Ocean. They will assist in widening the network of Double Taxation Avoidance Agreements and Investment Promotion and Protection Agreements with African states.

The budget makes provision to broaden the scope for investment at home by Government disinvesting from some of its commercial and industrial assets. The aim is three-fold: make better use of Government assets to generate wealth and employment, raise revenue to invest in new strategic sectors, and offer better facilities to the public.

A Resilience Plan has been designed for the next three years covering enterprises of all sizes with special focus on SMEs, infrastructure development and job creation. It is made up of four strategies: support enterprises at the microeconomic level; investments of Rs 21.2 billion for key infrastructure projects; further build up the stability of our financial system; and setting up of a necessary mechanism for determining, with the Bank of Mauritius, the accepted range of the rate of inflation.

“This is a Budget about making things happen. It is a credible plan to fight exclusion, combat absolute poverty, democratise the economy, create more jobs, bolster the confidence of businesses and set a strong base for sustainable development”, said Mr Xavier Duval.

G20: Tax Havens and Non-Cooperative Jurisdictions

2011-11-04T23:28:00.002Z

Since 2008, the G20 has been the main political driving force behind action to counter tax havens and non-cooperative jurisdictions. The international conference held by France and Germany in October 2008 followed by the G20 Summit in London in 2009 marked a major milestone by stating for the first time that non-cooperative jurisdictions are a threat to the international financial system and our public finances. Three processes were set up (see details below) to objectively identify non-cooperative jurisdictions and urge them to comply with the international standards on transparency and information exchange.

The G20 in Cannes has fully reviewed these processes. This is an extremely tricky exercise as it calls for a collective judgment on certain extremely reluctant countries.

1. In tax matters, G20 action has prompted a first with the signing of a wave of over 700 tax information exchange agreements. The Global Forum (OECD body working on tax transparency and now counting 105 members) is responsible for checking that each country (i) has a legal framework for the exchange of information for tax purposes (phase 1 review) and (ii) that this legal framework is effective (phase 2 review). To date, 59 jurisdictions have been assessed. Full findings are detailed in the Global Forum’s public report, which identified 11 jurisdictions with serious shortcomings:

Antigua and Barbuda, Barbados, Botswana, Brunei, Panama, Seychelles, Trinidad and Tobago, Uruguay, and Vanuatu do not have a suitable legal framework for the exchange of tax information and do not qualify for the phase 2 review;
Switzerland and Liechtenstein do not qualify for phase 2 until they remedy certain deficiencies identified by the Global Forum;
24 other jurisdictions have a number of sizeable deficiencies, but are entitled to embark upon the phase 2 review: a further 16 present more minor failings, and eight countries have no shortcomings (including France).

The Global Forum’s assessments cover nearly 400 recommendations, intended for the jurisdictions to conduct the reforms required to increase their tax transparency. For example, Belgium has lifted its banking secrecy, the Cayman Islands have introduced new accounting obligations, and the British Virgin Islands have scaled up their tax administration’s powers. This is a long battle that we need to fight tirelessly if we are to obtain results.

Cannes has also rallied all the G20 countries to the multilateral convention on mutual administrative assistance in tax matters. This new convention is set to have a new knock-on effect, especially on developing countries, as it provides access to a tax information exchange network that includes the leading economies.

2. In financial regulation and supervision (banks, insurance and financial markets), the Financial Stability Board (FSB) is assessing the compliance of countries with international standards on cooperation and information exchange between supervisors. The FSB has already analyzed the situation of the 61 countries with the leading financial systems – including all the G20 members. The evaluations to date show that:

41 of the 61 countries evaluated satisfactorily apply the international standards;
18 are in an intermediate situation (either the assessment of one or more sectors has found shortcomings that are being corrected, or the assessment is incomplete or out of date, but the country is cooperating to bring itself into compliance);
2 countries, Libya (former authorities) and Venezuela, refused to talk to the FSB and are accordingly deemed non-cooperative jurisdictions. The FSB continues to seek dialogue with these authorities, but is also prepared to use countermeasures if necessary.

3. In action to counter money laundering and the financing of terrorism, the FATF has identified 12 jurisdictions whose strategic deficiencies constitute a threat to the international financial system and which the States are advised to take into account:

Iran and North Korea present the most serious deficiencies and the FATF has explicitly called for countermeasures to be taken against these non-cooperative jurisdictions (“enhanced due diligence” procedures by the banks).
Cuba, Bolivia, Ethiopia, Kenya, Myanmar, Nigeria, Sao Tomé & Principe, Sri Lanka, Syria, and Turkey have made what the FATF considers to be insufficient progress.

In a second document, the FATF lists the 28 countries with strategic deficiencies that have embarked upon a process to solve these deficiencies with the FATF.

In Cannes, the G20 countries have solemnly recommitted to promote compliance with the international tax and financial information exchange standards and to use all the countermeasures available to them to combat tax havens and non-cooperative jurisdictions that do not comply with these standards.

In tax matters, the countermeasures include tax penalties on counterparties in transactions with tax havens.

Taking this action forward, the G20 has called on the FATF and the OECD to step up their joint work on corporate and trust transparency in tax and money laundering matters.

G20 Cannes summit - Tackling tax havens and non-cooperative jurisdictions

2011-11-04T23:14:00.000Z

We are committed to protect our public finances and the global financial system from the risks posed by tax havens and non cooperative jurisdictions. The damage caused is particularly important for the least developed countries. Today we reviewed progress made in the three following areas:

In the tax area, the Global Forum has now 105 members. More than 700 information exchange agreements have been signed and the Global Forum is leading an extensive peer review process of the legal framework (phase 1) and implementation of standards (phase 2). We ask the Global Forum to complete the first round of phase 1 reviews and substantially advance the phase 2 reviews by the end of next year. We will review progress at our next Summit. Many of the 59 jurisdictions which have been reviewed by the Global Forum are fully or largely compliant or are making progress through the implementation of the 379 relevant recommendations. We urge all the jurisdictions to take the necessary action to tackle the deficiencies identified in the course of their reviews, in particular the 11 jurisdictions whose framework does not allow them at this stage to qualify to phase 2. We underline in particular the importance of comprehensive tax information exchange and encourage competent authorities to continue their work in the Global Forum to assess and better define the means to improve it. We welcome the commitment made by all of us to sign the Multilateral Convention on Mutual Administrative Assistance in Tax Matters and strongly encourage other jurisdictions to join this Convention. In this context, we will consider exchanging information automatically on a voluntary basis as appropriate and as provided for in the convention;
In the prudential area, the FSB has led a process and published a statement to evaluate adherence to internationally agreed information exchange and cooperation standards. Out of 61 jurisdictions selected for their importance on several economic and financial indicators, we note with satisfaction that 41 jurisdictions have already demonstrated sufficiently strong adherence to these standards and that 18 others are committing to join them. We urge the identified non-cooperative jurisdictions to take the actions requested by the FSB;
In the anti-money laundering and combating the financing of terrorism area, the FATF has recently published an updated list of jurisdictions with strategic deficiencies. We urge all jurisdictions and in particular those identified as not complying or making sufficient progress to strengthen their AML/CFT systems in cooperation with the FATF.

We urge all jurisdictions to adhere to the international standards in the tax, prudential and AML/CFT areas. We stand ready, if needed, to use our existing countermeasures to deal with jurisdictions which fail to meet these standards. The FATF, the Global Forum and other international organizations should work closely together to enhance transparency and facilitate cooperation between tax and law enforcement agencies in the implementation of these standards. We also call on FATF and OECD to do further work to prevent misuse of corporate vehicles.

Bedell Trust launches Bedell Management Services (Mauritius) Limited

2011-11-04T22:40:00.000Z

Bedell Trust is strengthening its presence in Mauritius, widely recognised as an increasingly sophisticated international finance centre.

Bedell Management Services (Mauritius) Limited is a full service management company, providing corporate, trust and fund administration services. Its range of expertise complements the legal advice provided by Bedell Cristin (Mauritius) Partnership, which opened in November 2010 and has swiftly established itself in the region for its expertise in handling complex cross-border transactions.

Bedell Management Services (Mauritius) Limited will be led by Yuvraj Juwaheer, who has over 15 years’ experience in the global finance business sector. Yuvraj was a member of the Mauritian government steering committee set up in 2004 to consider opening the island to international law firms, and was an independent director on the board of a number of Indian funds. He and his team offer a potent combination of local knowledge and the wider, worldwide resources of Bedell.

“Mauritius is a key location for Bedell Trust. OECD ‘whitelist’ status recognises its adherence to best international financial standards, it benefits from many double tax treaties and is a politically stable base for investment into the attractive markets of India, Africa and the Far East,” says Yuvraj. “Bedell Trust’s clients have been showing a keen interest in the services we can provide from Mauritius.”

He adds that Bedell Trust’s worldwide recognition as a leader in its field opens many doors in the region.

Commenting on the opening of Bedell Management Services (Mauritius), Michael Richardson, Executive Chairman of Bedell Trust said, "Our strong presence in Mauritius is of great value to clients hoping to invest in South Africa, India and the Far East. Yuvraj’s extensive experience and unmatchable local network provide considerable benefits to our clients and to our business worldwide."

Selected, in 2011, for the Top 25 Most Admired Companies list compiled by Private Client Practitioner, Bedell Trust has recently been named Owner-Managed Trust Team of the Year in the STEP Private Client Awards 2011/12.

Mauritius Budget 2012 - Financial Services: the Linchpin of our Economy

2011-11-04T20:14:00.004Z

The financial services industry will continue to be the linchpin of our economy. We have taken it to great heights of success. But we will not rest on our laurels. We will provide strong support to the financial services industry to weave new business links with the rest of the world, comply fully with international norms and diversify its products.

Legislation has already been passed to promote Limited Partnerships.

We will soon set out the legal framework to promote:

Foundations;
Private Occupational Pensions; and
New concepts of Trusts.

These should significantly widen the spectrum of financial vehicles in our jurisdiction.

The Government of Mauritius will continue to protect our country’s best interest with regards to the India/Mauritius Double Taxation Avoidance Agreement.

The ‘Code Civil Mauricien’ will be amended to provide for an appropriate legal framework which would govern leasing of both immovable and movable property, especially finance leasing.

As regards the insurance sector, we are abrogating legislation that would have allowed local assets to be insured with an insurance company based in a foreign country in 2013.

A solidarity levy will cover Management Companies in the Global Business Sector. The levy will be 10 percent of chargeable income and will be applicable for 2 years ending in 2013.

Ogier - Inaugural IFC Forum Conference

2011-11-03T23:26:00.001Z

Nick Kershaw, Ogier Group CEO, chaired the first high-level policy conference, International Financial Centres: Sharing Perspectives and Meeting the Challenges organised by The Commonwealth Secretariat and the IFC Forum on 20th and 21st October in London.

The event examined the role of small international financial centres (IFCs) in the global economy and included perspectives from the OECD, governments, business leaders, respected academics and the media. The conference called on the OECD and G20 to adopt a more constructive approach to dealing with small International Financial Centres, which included securing a commitment to work in a more collaborative partnership and the adoption of a more balanced tone which drops the use of words like tax haven.

The IFC Forum was created in 2009 against a backdrop of a world that was becoming increasingly hostile and aggressive towards small international financial centres. It was formed with the purpose of providing policymakers with authoritative and balanced information on the vital role that IFCs play in the global economy and thereby counteracting the negative sentiments which were increasingly gaining traction.

One of the major themes which emerged during the conference was the need for much closer cooperation and partnership between the private and public sector in pressing the case with multi-lateral organisations, including the OECD and G20, for small-state IFCs to continue to operate in the global economy.

Nick Kershaw said "The IFC Forum has played a valuable role in communicating the positive contribution that IFCs make to the world's economy. This conference set out to address another vital element which is that IFCs need to work together in getting their message across and influencing policymakers."

Colin Powell, Adviser - International Affairs, Chief Minister's Department, States of Jersey, spoke at the conference on Technical Assistance and Capacity Building: Challenges facing IFCs. His speech looked at the role IFCs can play in helping with standard setting and compliance assessment, and in helping developing countries build up their domestic and international capacity. Colin Powell said, "The conference was very productive in presenting ways that IFCs working together can influence attitudes particularly through their positive and constructive participation in the relevant international initiatives."

Nick Kershaw said "The IFC Forum will continue to press its case that islands such as Jersey represent a major boon to the global economy in allowing international trade, economic growth and prosperity to increase. At the current time of great economic and financial uncertainty, particularly with Europe’s sovereign debt crisis looming ever larger, it is important that the world’s major economies do not penalise us, with measures which reduce market liquidity and investment, killing off any hopes of economic recovery. As the IFC Forum’s conference in London clearly demonstrated, there is a growing consensus emerging across the private and public sector towards greater partnership and cooperation in addressing these issues.”

The conference was attended by over 120 delegates. This included representatives from the private sector as well as a number of small-state IFC governments including Anguilla, The British Virgin Islands, Barbados, Bermuda, Cayman, The Cook Islands, The Bahamas, Grenada, Guernsey, The Isle of Man, Jersey, Samoa, The Seychelles and St Lucia. The conference was organised in partnership with the Commonwealth Secretariat to discuss the themes of developing global regulatory standards, promoting global prosperity through trade and international finance, as well boosting growth, employment and investment returns in the world’s major economies.

‘International Perception of Asia as a Low-Cost Financial Centre Inaccurate’ – STEP Report

2011-11-03T23:23:00.001Z

The findings of a report released today by the Society of Trust and Estate Practitioners (STEP) contradict the perception that East Asia is the low cost centre that many in Europe believe it to be.

The findings that emerge from the report, published during this week’s STEP Asia Conference in Singapore, both confirm and contradict several widely held external perceptions about trust and estate practice in East Asia. As the newest and fastest growing region in the world for wealth planning, the report provides useful insight into differences with more established International Financial Centres as well as fresh input into the long running debate on Hong Kong vs Singapore as rival centres of private client wealth management.

The impact of China as a force for change remains hotly debated as does the assertion that increasing regulatory initiatives – especially tax compliance – will make practitioners’ lives more difficult.

STEP Chief Executive David Harvey said: “The picture that emerges from this research is of an industry confidently taking its own path of development into a future that is both similar to, and quite different from, the route followed by more established International Financial Centres.”

The report can be viewed online here

Jersey Finance: TIEA with India is a welcome development

2011-11-03T22:12:00.000Z

The signing of the Tax Information Exchange Agreement (TIEA) with India is a welcome development in Jersey’s progress in establishing closer commercial ties with the country.

Geoff Cook, chief executive, Jersey Finance Limited, commented:

‘For the last five years or so Jersey Finance has been building its links with India by hosting visits in which we showcase our services and highlight the quality of our regulatory regime. Senior politicians and regulators have joined us on some of our trips to meet formally with Government officials and regulators in India. Earlier this year, Jersey Finance cemented its presence further by appointing representatives in both Mumbai and Delhi.

The signing of the TIEA is a boost to that growing commercial relationship and from an industry perspective gives further confidence to practitioners in both Jersey and India that there is mutual recognition about the quality of the standards of compliance and co-operation between regulators and tax authorities.’

Jersey remains well placed to provide the investment vehicles to conduit international capital into India for the infrastructure projects it undertakes. It possesses similar company entities to enable Indian businesses to expand internationally and access capital on foreign exchanges, including the London Stock Exchange and it has investment structures which are ideal for servicing the needs of the growing high net worth sector in India.

Companies from emerging giants China and Russia most likely to bribe abroad

2011-11-02T21:17:00.000Z

Bribing public officials when doing business abroad is a regular occurrence, according to a survey of 3,000 business executives from developed and developing countries.

Transparency International’s 2011 Bribe Payers Index, released today, ranks 28 leading international and regional exporting countries by the likelihood of their firms to bribe abroad. Companies from Russia and China, who invested US $120 billion overseas in 2010, are seen as most likely to pay bribes abroad. Companies from the Netherlands and Switzerland are seen as least likely to bribe.

Addressing foreign bribery is a priority issue for the international community. A year ago the group of 20 leading economies (G20) committed to tackling foreign bribery by launching an anti-corruption action plan. The progress report of the working group monitoring the action plan, which G20 leaders are expected to approve at tomorrow’s Cannes summit, will recognise steps taken by G20 countries China, Russia, Indonesia and India in criminalising foreign bribery. Transparency International welcomes the report and calls for swift implementation of the further anti-corruption measures that it calls for.

“In their meeting in Cannes this week, G20 governments must tackle foreign bribery as a matter of urgency. New legislation in G20 countries is an opportunity to provide a fairer, more open global economy that creates the conditions for sustainable recovery and the stability of future growth. Governments can press home the advances made by putting resources behind investigations and prosecutions of foreign bribery, so that there is a very real deterrent to unethical and illegal behaviour,” said Transparency International Chair, Huguette Labelle.

THE IMPACT OF BRIBERY

In the survey, international business leaders reported the widespread practice of companies paying bribes to public officials in order to, for example, win public tenders, avoid regulation, speed up government processes or influence policy.

However, companies are almost as likely to pay bribes to other businesses, according to today’s report, which looks at business-to-business bribery for the first time. This suggests that corruption is not only a concern for the public sector, but for the business sector as well, carrying major reputational and financial risks for the companies involved.

“It is clear that bribery remains a routine business practice for too many companies and runs throughout their business dealings, not just those with public officials. And companies that fail to prevent bribery in their supply chains run the risk of being prosecuted for the actions of employees and business partners,” said Labelle.

The 2011 Bribe Payers Index also looks at the likelihood of firms in 19 specific sectors to engage in bribery and exert undue influence on governments:

Public works and construction companies scored lowest in the survey. This is a sector where bypassed regulations and poor delivery can have disastrous effects on public safety.
Oil and gas is also a sector seen as especially prone to bribery. The extractives industry has long been prone to corruption risk. Companies operating in oil-rich Nigeria have already been fined upwards of US $3.2 billion in 2010-2011 for bribery of public officials.

CDP: Launching a new offshore fund?

2011-11-01T23:08:00.001Z

Anyone who ever arrived at a busy airport to catch a flight has been exposed to the frequently stressful experience of being caught up in a distribution hub –airports are distribution points where passengers are screened, directed and transported to their respective destinations. Time is of the essence and efficiency is absolutely required. All airports look vaguely familiar regardless of country or local language – but frequent travelers quickly differentiate the good from the bad.

Offshore financial centres are no different. Their frequent users are international asset and hedge fund managers whose mission is to efficiently deploy investment monies. These managers need their funds, whatever the currency, to travel from origin to investment destination safely and efficiently. Time lost in the distribution process translates directly into lost money.

Given a choice, investment fund and hedge fund managers have incentive to seek out the most efficient and secure offshore jurisdictions. They will choose to use only those jurisdictions that are efficient, secure and hospitable. Only the most efficient offshore financial centres are going to be selected to implement sophisticated international investment strategies.

This article is available in PDF Format, click below to view:

Launching a new offshore fund?

FATF identifies jurisdictions with strategic deficiencies

2011-10-28T23:59:00.002+01:00

In order to protect the international financial system from money laundering and terrorist financing, the FATF has published the following public documents, identifying countries with strategic deficiencies regarding anti-money laundering and combating the financing of terrorism (AML/CFT).

FATF Public Statement on jurisdictions with strategic anti-money laundering and combating the financing of terrorism (AML/CFT) deficiencies

The FATF has updated its public statement issued in June 2011 which identifies jurisdictions with strategic anti-money laundering and combating the financing of terrorism (AML/CFT) deficiencies.

Improving Global AML/CFT Compliance: on-going process

As part of its ongoing review of compliance with the AML/CFT standards, the FATF has identified jurisdictions which have strategic AML/CFT deficiencies for which they have developed an action plan with the FATF.

FATF Public Statement

2011-10-28T23:56:00.003+01:00

The Financial Action Task Force (FATF) is the global standard setting body for anti-money laundering and combating the financing of terrorism (AML/CFT). In order to protect the international financial system from ML/FT risks and to encourage greater compliance with the AML/CFT standards, the FATF identified jurisdictions that have strategic deficiencies and works with them to address those deficiencies that pose a risk to the international financial system.

Jurisdictions subject to a FATF call on its members and other jurisdictions to apply counter-measures to protect the international financial system from the on-going and substantial money laundering and terrorist financing (ML/TF) risks emanating from the jurisdictions*.

Iran

Democratic People's Republic of Korea (DPRK)

Jurisdictions with strategic AML/CFT deficiencies that have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies**. The FATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction, as described below.

Cuba**

São Tomé and Príncipe

Sri Lanka

Syria

Turkey

* The FATF has previously issued public statements calling for counter-measures on Iran and DPRK. Those statements are updated below.

**Cuba has not engaged with the FATF in the process.

Iran

The FATF, with a renewed urgency, is particularly and exceptionally concerned about Iran’s failure to address the risk of terrorist financing and the serious threat this poses to the integrity of the international financial system, despite Iran’s engagement with the FATF.

The FATF reaffirms its call on members and urges all jurisdictions to advise their financial institutions to give special attention to business relationships and transactions with Iran, including Iranian companies and financial institutions. In addition to enhanced scrutiny, the FATF reaffirms its 25 February 2009 call on its members and urges all jurisdictions to apply effective counter-measures to protect their financial sectors from money laundering and financing of terrorism (ML/FT) risks emanating from Iran. FATF continues to urge jurisdictions to protect against correspondent relationships being used to bypass or evade counter-measures and risk mitigation practices and to take into account ML/FT risks when considering requests by Iranian financial institutions to open branches and subsidiaries in their jurisdiction. Due to the continuing terrorist financing threat emanating from Iran, jurisdictions should consider the steps already taken and possible additional safeguards or strengthen existing ones.

The FATF urges Iran to immediately and meaningfully address its AML/CFT deficiencies, in particular by criminalising terrorist financing and effectively implementing suspicious transactions reporting (STR) requirements. If Iran fails to take concrete steps to improve its CFT regime, the FATF will consider calling on its members and urging all jurisdictions to strengthen counter-measures in February 2012.

Democratic People's Republic of Korea (DPRK)

The FATF remains concerned by the DPRK’s failure to address the significant deficiencies in its anti-money laundering and combating the financing of terrorism (AML/CFT) regime and the serious threat this poses to the integrity of the international financial system. The FATF urges the DPRK to immediately and meaningfully address its AML/CFT deficiencies.

The FATF reaffirms its call on its members and urges all jurisdictions to advise their financial institutions to give special attention to business relationships and transactions with the DPRK, including DPRK companies and financial institutions. In addition to enhanced scrutiny, the FATF further calls on its members and urges all jurisdictions to apply effective counter-measures to protect their financial sectors from money laundering and financing of terrorism (ML/FT) risks emanating from the DPRK. Jurisdictions should also protect against correspondent relationships being used to bypass or evade counter-measures and risk mitigation practices, and take into account ML/FT risks when considering requests by DPRK financial institutions to open branches and subsidiaries in their jurisdiction.

The FATF remains prepared to engage directly in assisting the DPRK to address its AML/CFT deficiencies, including through the FATF Secretariat.

________________________

Cuba

Cuba has not committed to the AML/CFT international standards, nor has it constructively engaged with the FATF. The FATF has identified Cuba as having strategic AML/CFT deficiencies that pose a risk to the international financial system. The FATF urges Cuba to develop an AML/CFT regime in line with international standards, and is ready to work with the Cuban authorities to this end.

________________________

Bolivia

Bolivia has taken steps towards improving its AML/CFT regime, including by enacting new CFT legislation. However, despite Bolivia’s high-level political commitment to work with the FATF and GAFISUD to address its strategic AML/CFT deficiencies, Bolivia has not made sufficient progress in implementing its action plan, and certain strategic AML/CFT deficiencies remain. Bolivia should work on addressing these deficiencies including by: (1) ensuring adequate criminalisation of money laundering (Recommendation 1); (2) adequately criminalising terrorist financing (Special Recommendation II); (3) establishing and implementing an adequate legal framework for identifying and freezing terrorist assets (Special Recommendation III); and (4) establishing a fully operational and effective Financial Intelligence Unit (Recommendation 26). The FATF encourages Bolivia to address its remaining deficiencies and continue the process of implementing its action plan.

Ethiopia

Despite Ethiopia’s high-level political commitment to work with the FATF to address its strategic AML/CFT deficiencies, Ethiopia has not made sufficient progress in implementing its action plan, and certain strategic AML/CFT deficiencies remain. Ethiopia should work on addressing these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing and implementing an adequate legal framework and procedures to identify and freeze terrorist assets (Special Recommendation III); (3) ensuring a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); (4) raising awareness of AML/CFT issues within the law enforcement community (Recommendation 27); and (5) implementing effective, proportionate and dissuasive sanctions in order to deal with natural or legal persons that do not comply with the national AML/CFT requirements (Recommendation 17). The FATF encourages Ethiopia to address its remaining deficiencies and continue the process of implementing its action plan.

Kenya

Despite Kenya’s high-level political commitment to work with the FATF and ESAAMLG to address its strategic AML/CFT deficiencies, Kenya has not made sufficient progress in implementing its action plan, and certain strategic AML/CFT deficiencies remain. Kenya should work on addressing these deficiencies, including by: (1) adequately criminalising terrorist financing (Special Recommendation II); (2) ensuring a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); (3) establishing and implementing an adequate legal framework for identifying and freezing terrorist assets (Special Recommendation III); (4) raising awareness of AML/CFT issues within the law enforcement community (Recommendation 27); and (5) implementing effective, proportionate and dissuasive sanctions in order to deal with natural or legal persons that do not comply with the national AML/CFT requirements (Recommendation 17). The FATF encourages Kenya to address its remaining deficiencies and continue the process of implementing its action plan, including by implementing the AML legislation and setting up its FIU.

Myanmar

Despite Myanmar’s high-level political commitment to work with the FATF and APG to address its strategic AML/CFT deficiencies, Myanmar has not made sufficient progress in implementing its action plan, and certain strategic AML/CFT deficiencies remain. Myanmar should work on addressing these deficiencies, including by: (1) adequately criminalising terrorist financing (Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); (3) further strengthening the extradition framework in relation to terrorist financing (Recommendation 35 and Special Recommendation I); (4) ensuring a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); (5) enhancing financial transparency (Recommendation 4); and (6) strengthening customer due diligence measures (Recommendation 5). The FATF encourages Myanmar to address its remaining deficiencies and continue the process of implementing its action plan.

Nigeria

Nigeria has taken steps towards improving its AML/CFT regime, including by enacting AML/CFT legislation. However, despite Nigeria’s high-level political commitment to work with the FATF and GIABA to address its strategic AML/CFT deficiencies, Nigeria has not made sufficient progress in implementing its action plan, and certain strategic deficiencies remain. Nigeria should work on addressing these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); (3) ensuring that relevant laws or regulations address deficiencies in customer due diligence requirements and that they apply to all financial institutions (Recommendation 5); and (4) continuing to improve the overall supervisory framework for AML/CFT (Recommendation 23). The FATF encourages Nigeria to address its remaining deficiencies and continue the process of implementing its action plan.

São Tomé and Príncipe

Despite São Tomé and Príncipe’s high-level political commitment to work with the FATF to address its strategic AML/CFT deficiencies, São Tomé and Príncipe has not made sufficient progress in implementing its action plan, and certain strategic deficiencies remain. São Tomé and Príncipe should work on addressing these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); (3) ensuring that financial institutions and DNFBPs are subject to adequate AML/CFT regulation and supervision, and that a competent authority or competent authorities have been designated to ensure compliance with AML/CFT requirements (Recommendations 23, 24 and 29); (4) implementing effective, proportionate and dissuasive sanctions in order to deal with natural or legal persons that do not comply with the national AML/CFT requirements (Recommendation 17); and (5) taking the necessary action to gain membership of GIABA. The FATF encourages São Tomé and Príncipe to address its remaining deficiencies and continue the process of implementing its action plan.

Sri Lanka

Sri Lanka has taken steps towards improving its AML/CFT regime, including by enacting AML/CFT amendments. However, despite Sri Lanka’s high-level political commitment to work with the FATF and APG to address its strategic AML/CFT deficiencies, Sri Lanka has not made sufficient progress in implementing its action plan, and certain strategic AML/CFT deficiencies remain. Sri Lanka should work on addressing these deficiencies, including by: (1) adequately criminalising terrorist financing and addressing the remaining deficiencies with regard to the criminalisation of money laundering (Special Recommendation II and Recommendation 1); and (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III). The FATF encourages Sri Lanka to address its remaining deficiencies and continue the process of implementing its action plan, including by continuing to work on its AML/CFT legislation.

Syria

Syria has taken significant steps towards improving its AML/CFT regime, including by improving the legal arrangements for freezing terrorist assets. However, despite Syria’s high-level political commitment to work with the FATF and MENAFATF to address its strategic AML/CFT deficiencies, Syria has not made sufficient progress in implementing its action plan, and certain strategic AML/CFT deficiencies remain. Syria should work on addressing its deficiencies, including by: (1) adopting adequate measures to implement and enforce the 1999 International Convention for the Suppression of Financing of Terrorism (Special Recommendation I); (2) implementing adequate procedures for identifying and freezing terrorist assets (Special Recommendation III); (3) ensuring that financial institutions are aware of and comply with their obligations to file suspicious transaction reports in relation to ML and FT (Recommendation 13 and Special Recommendation IV); and (4) ensuring that appropriate laws and procedures are in place to provide mutual legal assistance (Recommendations 36-38, Special Recommendation V). The FATF encourages Syria to address its remaining deficiencies and continue the process of implementing its action plan.

Turkey

Turkey has taken steps towards improving its AML/CFT regime, including by submitting CFT legislation to Parliament. Despite Turkey’s high-level political commitment to work with the FATF to address its strategic AML/CFT deficiencies, Turkey has not made sufficient progress in implementing its action plan, and certain strategic AML/CFT deficiencies remain. Turkey should work on addressing these deficiencies, including by: (1) adequately criminalising terrorist financing (Special Recommendation II); and (2) implementing an adequate legal framework for identifying and freezing terrorist assets (Special Recommendation III). The FATF encourages Turkey to address its remaining deficiencies and continue the process of implementing its action plan.

FATF - Improving Global AML/CFT Compliance: on-going process

2011-10-28T23:55:00.002+01:00

As part of its on-going review of compliance with the AML/CFT standards, the FATF has to date identified the following jurisdictions which have strategic AML/CFT deficiencies for which they have developed an action plan with the FATF. While the situations differ among each jurisdiction, each jurisdiction has provided a written high-level political commitment to address the identified deficiencies. The FATF welcomes these commitments.

A large number of jurisdictions have not yet been reviewed by the FATF. The FATF continues to identify additional jurisdictions, on an on-going basis, that pose a risk to the international financial system. The FATF has additionally begun initial reviews of a number of other jurisdictions as part of this process and will present its findings next year.

The FATF and the FSRBs will continue to work with the jurisdictions noted below and to report on the progress made in addressing the identified deficiencies. The FATF calls on these jurisdictions to complete the implementation of action plans expeditiously and within the proposed timeframes. The FATF will closely monitor the implementation of these action plans and encourages its members to consider the information presented below.

Algeria

In October 2011, Algeria made a high-level political commitment to work with the FATF and MENAFATF to address its strategic AML/CFT deficiencies. Algeria has taken steps towards improving its AML/CFT regime. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Algeria will work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising terrorist financing (Special Recommendations I and II); (2) establishing and implementing an adequate legal framework for identifying, tracing and freezing terrorist assets (Special Recommendation III), (3) improving and broadening CDD measures and ensuring that they apply to all financial institutions (Recommendation 5); (4) ensuring a fully operational and effectively functioning Financial Intelligence Unit, in particular addressing the operational autonomy of the FIU and the authority of the FIU to request and access information (Recommendation 26); and (5) enacting and implementing appropriate mutual legal assistance legislation (Special Recommendation V). The FATF encourages Algeria to address its deficiencies and continue the process of implementing its action plan.

Angola

In June 2010, Angola made a high-level political commitment to work with the FATF to address its strategic AML/CFT deficiencies. Since June 2011, Angola has taken steps towards improving its AML/CFT regime, including by issuing CDD regulations to banks. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Angola should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) ensuring a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); and (3) establishing and implementing an adequate legal framework for identifying, tracing and freezing terrorist assets (Special Recommendation III). The FATF encourages Angola to address its remaining deficiencies and continue the process of implementing its action plan.

Antigua and Barbuda

In February 2010, Antigua and Barbuda made a high-level political commitment to work with the FATF and CFATF to address its strategic AML/CFT deficiencies. Since June 2011, Antigua and Barbuda has taken steps towards improving its AML/CFT regime, including by commencing off-site inspections of its financial institutions. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Antigua and Barbuda should continue to work on implementing its action plan to address these deficiencies, including by: (1) implementing an adequate legal framework for identifying and freezing terrorist assets (Special Recommendation III); and (2) continuing to improve the overall supervisory framework (Recommendation 23). The FATF encourages Antigua and Barbuda to address its remaining deficiencies and continue the process of implementing its action plan.

Argentina

In June 2011, Argentina made a high-level political commitment to work with the FATF to address its strategic AML/CFT deficiencies. Since then, Argentina has taken steps towards improving its AML/CFT regime, including by addressing some of the concerns the FATF expressed regarding its June 2011 amendments to its AML legislation, submitting draft CFT legislation to National Congress, issuing a decree dealing with evaluating effectiveness of its AML/CFT measures; and issuing an FIU Resolution enhancing CDD measures for the financial and foreign exchange sectors. The FATF has determined that strategic AML/CFT deficiencies remain. Argentina will work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising terrorist financing and addressing the remaining deficiencies with regard to the criminalisation of money laundering (Special Recommendation II and Recommendation 1); (2) establishing and implementing adequate procedures for the confiscation of funds related to money laundering and identifying and freezing terrorist assets (Recommendation 3 and Special Recommendation III); (3) enhancing financial transparency (Recommendation 4); (4) ensuring a fully operational and effectively functioning Financial Intelligence Unit and improving suspicious transaction reporting requirements (Recommendation 13, Special Recommendation IV and Recommendation 26); (5) implementing an adequate AML/CFT supervisory programme for all financial sectors (Recommendations 17, 23 and 29); (6) improving and broadening CDD measures for the non-banking or non-foreign exchange sectors (Recommendation 5); and (7) establishing appropriate channels for international co-operation and ensuring effective implementation (Recommendation 36, Recommendation 40 and Special Recommendation V). The FATF encourages Argentina to address its remaining deficiencies and continue the process of implementing its action plan.

Bangladesh

In October 2010, Bangladesh made a high-level political commitment to work with the FATF and APG to address its strategic AML/CFT deficiencies. Since June 2011, Bangladesh has taken steps towards improving its AML/CFT regime, including by issuing AML/CFT guidance notes for the insurance sector. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Bangladesh should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); (3) implementing adequate procedures for the confiscation of funds related to money laundering (Recommendation 3); (4) ensuring a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); (5) improving suspicious transaction reporting requirements (Recommendation 13 and Special Recommendation IV); and (6) improving international co-operation (Recommendations 36 and 39 and Special Recommendation V). The FATF encourages Bangladesh to address its remaining deficiencies and continue the process of implementing its action plan.

Brunei Darussalam

In June 2011, Brunei Darussalam made a high-level political commitment to work with the FATF and APG to address its strategic AML/CFT deficiencies. Since then, Brunei Darussalam has taken steps towards improving its AML/CFT regime, including by enacting an Anti-Terrorism Order in July 2011. However, the FATF has determined that strategic AML/CFT deficiencies remain. Brunei Darussalam should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); (3) establishing and implementing adequate procedures for the confiscation of funds related to money laundering (Recommendation 3); (4) improving suspicious transaction reporting requirements (Recommendation 13 and Special Recommendation IV); (5) ensuring a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); and (6) enacting and implementing appropriate mutual legal assistance legislation (Recommendation 36 and Special Recommendation V). The FATF encourages Brunei Darussalam to address its remaining deficiencies and continue the process of implementing its action plan.

Cambodia

In June 2011, Cambodia made a high-level political commitment to work with the FATF and APG to address its strategic AML/CFT deficiencies. The FATF has determined that strategic AML/CFT deficiencies remain. Cambodia should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); (3) establishing and implementing adequate procedures for the confiscation of funds related to money laundering (Recommendation 3); (4) ensuring a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); and (5) establishing and implementing effective controls for cross-border cash transactions (Special Recommendation IX). The FATF encourages Cambodia to address its remaining deficiencies and continue the process of implementing its action plan.

Ecuador

In June 2010, Ecuador made a high-level political commitment to work with the FATF and GAFISUD to address its strategic AML/CFT deficiencies. The FATF has determined that certain strategic AML/CFT deficiencies remain. Ecuador should continue to work on implementing its action plan to address these deficiencies, including by: (1) ensuring adequate criminalisation of terrorist financing (Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); (3) implementing adequate procedures for the confiscation of funds related to money laundering (Recommendation 3); and (4) reinforcing and improving co-ordination of financial sector supervision (Recommendation 23). The FATF encourages Ecuador to address its remaining deficiencies and continue the process of implementing its action plan.

Honduras

In October 2010, Honduras made a high-level political commitment to work with the FATF and CFATF to address its strategic AML/CFT deficiencies. Since that time, Honduras has demonstrated progress in improving its AML/CFT regime, including by adopting legislation that aims to address issues relating to criminalisation of terrorist financing and freezing of terrorist assets and implementing resolutions that aim to improve CDD measures. The FATF will conduct an on-site visit to confirm that the process of implementing the required reforms and actions is underway to address deficiencies previously identified by the FATF.

Kyrgyzstan

In October 2011, Kyrgyzstan made a high-level political commitment to work with the FATF and EAG to address its strategic AML/CFT deficiencies. Kyrgyzstan has taken steps towards improving its AML/CFT regime. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Kyrgyzstan will work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing and implementing an adequate legal framework for identifying, tracing and freezing terrorist assets (Special Recommendation III) (3) establishing and implementing adequate measures for the confiscation of funds related to money laundering (Recommendation 3); (4) establishing effective CDD measures for all financial institutions (Recommendation 5); and (5) implementing an adequate and effective AML/CFT supervisory programme for all financial sectors (Recommendation 23). The FATF encourages Kyrgyzstan to address its deficiencies and continue the process of implementing its action plan.

Mongolia

In June 2011, Mongolia made a high-level political commitment to work with the FATF and APG to address its strategic AML/CFT deficiencies. The FATF has determined that strategic AML/CFT deficiencies remain. Mongolia should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); (3) establishing adequate procedures for the confiscation of funds related to money laundering (Recommendation 3); (4) establishing suspicious transaction reporting requirements (Recommendation 13 and Special Recommendation IV); (5) establishing a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); and (6) demonstrating effective regulation of money service providers. The FATF encourages Mongolia to address its remaining deficiencies and continue the process of implementing its action plan.

Morocco

In February 2010, Morocco made a high-level political commitment to work with the FATF and MENAFATF to address its strategic AML/CFT deficiencies. Since then, Morocco has demonstrated progress in improving its AML/CFT regime, including by adopting amendments to extend the scope of the money laundering and terrorist financing offences; to broaden customer due diligence requirements and taking steps to operationalise the Financial Intelligence Unit. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Morocco should continue to work on implementing its action plan to address these deficiencies, including by adequately criminalising terrorist financing (Special Recommendation II).

Namibia

In June 2011, Namibia made a high-level political commitment to work with the FATF and ESAAMLG to address its strategic AML/CFT deficiencies. Namibia has taken steps towards improving its AML/CFT regime, including by securing the information held in the FIU. However, the FATF has determined that strategic AML/CFT deficiencies remain. Namibia should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising terrorist financing (Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); (3) implementing an adequate AML/CFT supervisory programme with sufficient powers (Recommendation 23 and 29); (4) ensuring a fully operational and effectively functioning Financial Intelligence Unit, in particular addressing the operational autonomy of the FIU (Recommendation 26); (5) implementing effective, proportionate and dissuasive sanctions in order to deal with non-compliance with the national AML/CFT requirements (Recommendation 17); and (6) implementing the 1999 International Convention for the Suppression of Financing of Terrorism (Special Recommendation I). The FATF encourages Namibia to address its remaining deficiencies and continue the process of implementing its action plan.

Nepal

In February 2010, Nepal made a high-level political commitment to work with the FATF and APG to address its strategic AML/CFT deficiencies. Since June 2011, Nepal has taken steps towards improving its AML/CFT regime, including by approving an AML/CFT National Strategy. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Nepal should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); (3) implementing adequate procedures for the confiscation of funds related to money laundering (Recommendation 3); and (4) enacting and implementing appropriate mutual legal assistance legislation (Recommendation 36). The FATF encourages Nepal to address its remaining deficiencies and continue the process of implementing its action plan.

Nicaragua

In June 2011, Nicaragua made a high-level political commitment to work with the FATF and CFATF to address its strategic AML/CFT deficiencies. Since then, Nicaragua has taken steps towards improving its AML/CFT regime, including by establishing an agency responsible for regulating and supervising the microfinance industry. However, the FATF has determined that strategic AML/CFT deficiencies remain. Nicaragua should continue to work on implementing its action plan to address these deficiencies, including by: (1) establishing effective CDD measures and record-keeping requirements, in particular entities not currently regulated by the supervisory authority (Recommendation 5 and Recommendation 10); (2) establishing adequate STR reporting obligations for ML and FT (Recommendation 13 and Special Recommendation IV); (3) implementing an adequate AML/CFT supervisory programme for all financial sectors (Recommendation 23); (4) establishing a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); and (5) establishing adequate procedures for identifying and freezing terrorist assets (Special Recommendation III)The FATF encourages Nicaragua to address its remaining deficiencies and continue the process of implementing its action plan.

Paraguay

In February 2010, Paraguay made a high-level political commitment to work with the FATF and GAFISUD to address its strategic AML/CFT deficiencies. Since that time, Paraguay has taken steps towards improving its AML/CFT regime, including enacting CFT legislation and issuing regulations prohibiting anonymous accounts. The FATF will conduct an on-site visit to confirm that the process of implementing the required reforms and actions is underway to address deficiencies previously identified by the FATF.

Philippines

In October 2010, the Philippines made a high-level political commitment to work with the FATF and APG to address its strategic AML/CFT deficiencies. Since June 2011, the Philippines has taken steps towards improving its AML/CFT regime, including by capacity building in the areas of supervision and regulation. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. The Philippines should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) implementing adequate procedures to identify and freeze terrorist assets and confiscate funds related to money laundering (Special Recommendation III and Recommendation 3); (3) enhancing financial transparency (Recommendation 4); and (4) extending coverage of reporting entities (Recommendations 12 and 16). The FATF encourages the Philippines to address its remaining deficiencies and continue the process of implementing its action plan.

Sudan

In February 2010, Sudan made a high-level political commitment to work with the FATF and MENAFATF to address its strategic AML/CFT deficiencies. Since June 2011, Sudan has taken steps towards improving its AML/CFT regime, including by improving the overall infrastructure of the FIU and the supervisory framework. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Sudan should continue to work on implementing its action plan to address these deficiencies, including by: (1) implementing adequate procedures for identifying and freezing terrorist assets (Special Recommendation III); (2) ensuring a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); (3) ensuring that financial institutions are aware of and comply with their obligations to file suspicious transaction reports in relation to ML and FT (Recommendation 13 and Special Recommendation IV); and (4) implementing a supervisory programme for the regulators to ensure compliance with the provisions of the new law and regulations (Recommendation 23). The FATF encourages Sudan to address its remaining deficiencies and continue the process of implementing its action plan.

Tajikistan

In June 2011, Tajikistan made a high-level political commitment to work with the FATF and EAG to address its strategic AML/CFT deficiencies. The FATF has determined that strategic AML/CFT deficiencies remain. Tajikistan should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing and implementing adequate procedures for the confiscation of funds related to money laundering and identifying and freezing terrorist assets (Recommendation 3 and Special Recommendation III); (3) enhancing financial transparency (Recommendation 4); (4) ensuring a fully operational, and effectively functioning Financial Intelligence Unit and improving suspicious transaction reporting requirements (Recommendation 13, Special Recommendation IV, and Recommendation 26); and (5) improving and broadening CDD measures (Recommendation 5). The FATF encourages Tajikistan to address its remaining deficiencies and continue the process of implementing its action plan.

Turkmenistan

In June 2010, Turkmenistan made a high-level political commitment to work with the FATF and EAG to address its strategic AML/CFT deficiencies. Since June 2011, Turkmenistan has taken steps towards improving its AML/CFT regime, including by establishing a legal framework to freeze terrorist assets. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Turkmenistan should continue to work on implementing its action plan to address these deficiencies, including by: (1) developing collaboration between the FIU and domestic counterparts, including supervisory authorities; and (2) strengthening international co-operation in the areas of investigation and confiscation/repatriation of funds. The FATF encourages Turkmenistan to address its remaining deficiencies and continue the process of implementing its action plan.

Trinidad and Tobago

In February 2010, Trinidad and Tobago made a high-level political commitment to work with the FATF and CFATF to address its strategic AML/CFT deficiencies. Since June 2011, Trinidad and Tobago has taken steps towards improving its AML/CFT regime, including by completing the registration process of the listed businesses and initiating the supervision of the listed entities. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Trinidad and Tobago should continue to work on implementing its action plan to address these deficiencies, including by (1) implementing adequate procedures to identify and freeze terrorist assets without delay (Special Recommendation III); and (2) establishing a fully operational and effectively functioning Financial Intelligence Unit, including supervisory powers (Recommendation 26). The FATF encourages Trinidad and Tobago to address its remaining deficiencies and continue the process of implementing its action plan.

Venezuela

In October 2010, Venezuela made a high-level political commitment to work with the FATF and CFATF to address its strategic AML/CFT deficiencies. Since then, Venezuela has taken steps towards improving its AML/CFT regime, including by improving the independence of the FIU and the regulations for the banking and securities sectors. However, the FATF has determined that certain strategic deficiencies remain. Venezuela should continue to work with the FATF and CFATF on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising terrorist financing (Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendations I and III); (3) ensuring a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); (4) implementing adequate CDD guidelines for all sectors (Recommendation 5); and (5) establishing adequate STR reporting obligations for ML and FT (Recommendation 13 and Special Recommendation IV). The FATF encourages Venezuela to address its remaining deficiencies and continue the process of implementing its action plan.

Vietnam

In October 2010, Vietnam made a high-level political commitment to work with the FATF and APG to address its strategic AML/CFT deficiencies. The FATF has determined that certain strategic AML/CFT deficiencies remain. Vietnam should continue to work with the FATF and APG on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); (3) making legal persons subject to criminal liability in line with FATF Recommendation 2 or demonstrating that there is a constitutional prohibition to prevent this; (4) improving the overall supervisory framework (Recommendation 23); (5) improving and broadening customer due diligence measures and reporting requirements (Recommendation 5, 13, and Special Recommendation IV); and (6) strengthening international co-operation (Recommendations 36, 40). The FATF encourages Vietnam to address its remaining deficiencies and continue the process of implementing its action plan.

Yemen

In February 2010, Yemen made a high-level political commitment to work with the FATF and MENAFATF to address its strategic AML/CFT deficiencies. The FATF has determined that certain strategic deficiencies remain. Yemen should continue to work on implementing its action plan to address these deficiencies, including by: (1) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); (2) conducting outreach to sensitise reporting institutions of their AML/CFT obligations (Recommendation 25); (3) developing the monitoring and supervisory capacity of the financial sector supervisory authorities and the FIU, to ensure compliance by financial institutions with their STR obligations, especially in relation to FT (Recommendation 23); and (4) ensuring a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26). The FATF encourages Yemen to address its remaining deficiencies and continue the process of implementing its action plan.

Zimbabwe

In June 2011, Zimbabwe made a high-level political commitment to work with the FATF and ESAAMLG to address its strategic AML/CFT deficiencies. The FATF has determined that strategic AML/CFT deficiencies remain. Zimbabwe should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation I and Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); (3) ensuring a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); (4) ensuring that financial institutions are aware of and comply with their obligations to file suspicious transaction reports in relation to ML and FT (Recommendation 13 and Special Recommendation IV); (5) enacting and implementing appropriate mutual legal assistance legislation (Special Recommendation V); and (6) implementing the 1999 International Convention for the Suppression of Financing of Terrorism (Special Recommendation I). The FATF encourages Zimbabwe to address its remaining deficiencies and continue the process of implementing its action plan.

Ukraine

The FATF welcomes Ukraine’s significant progress in improving its AML/CFT regime and notes that Ukraine has largely met its commitments in its Action Plan regarding the strategic deficiencies that the FATF had identified in February 2010. Ukraine is therefore no longer subject to FATF’s monitoring process under its on-going global AML/CFT compliance process. Ukraine will work with MONEYVAL as it continues to address the full range of AML/CFT issues identified in its Mutual Evaluation Report, and further strengthen its AML/CFT regime.

Jurisdiction not making sufficient progress

The FATF is not yet satisfied that the following jurisdictions have made sufficient progress on their action plan agreed upon with the FATF. The most significant action plan items and/or the majority of the action plan items have not been addressed. If these jurisdictions do not take sufficient action to implement significant components of their action plan by February 2012, then the FATF will identify these jurisdictions as being out of compliance with their agreed action plans and will take the additional step of calling upon its members to consider the risks arising from the deficiencies associated with the jurisdiction.

Ghana

Despite Ghana’s high-level political commitment to work with the FATF and GIABA to address its strategic AML/CFT deficiencies, the FATF is not yet satisfied that Ghana has made sufficient progress in implementing its action plan, and certain strategic AML/CFT deficiencies remain. Ghana should work with the FATF and GIABA on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing and implementing adequate measures for the confiscation of funds related to money laundering (Recommendation 3); (3) establishing effective CDD measures (Recommendation 5); (4) establishing a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); and (5) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III). The FATF encourages Ghana to address its remaining deficiencies and continue the process of implementing its action plan.

Indonesia

Despite Indonesia’s high-level political commitment to work with the FATF and APG to address its strategic AML/CFT deficiencies, the FATF is not yet satisfied that Indonesia has made sufficient progress in implementing its action plan, and certain strategic AML/CFT deficiencies remain. Indonesia should work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising terrorist financing (Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); and (3) amending and implementing laws or other instruments to fully implement the 1999 International Convention for the Suppression of Financing of Terrorism (Special Recommendation I). The FATF encourages Indonesia to address its remaining deficiencies and continue the process of implementing its action plan.

Pakistan

Despite Pakistan’s high-level political commitment to work with the FATF and APG to address its strategic AML/CFT deficiencies, the FATF is not yet satisfied that Pakistan has made sufficient progress in implementing its action plan, and certain strategic AML/CFT deficiencies remain. Pakistan failed to provide a satisfactory response to the FATF’s particular concern about the lack of implementation regarding Pakistan’s terrorist financing offence expressed in June 2011 and its calls upon Pakistan to demonstrate specific action in this regard. Pakistan should work on implementing its action plan to address these deficiencies, including by (1) demonstrating adequate criminalisation of terrorist financing and addressing the remaining deficiencies with regard to the criminalisation of money laundering (Special Recommendation II and Recommendation 1); (2) demonstrating adequate procedures to identify, freeze and confiscate terrorist assets (Special Recommendation III); (3) ensuring a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); (4) demonstrating effective regulation of money service providers, including an appropriate sanctions regime, and increasing the range of ML/FT preventive measures for these services (Special Recommendation VI); and (5) improving and implementing effective controls for cross-border cash transactions (Special Recommendation IX). The FATF encourages Pakistan to address its remaining deficiencies and continue the process of implementing its action plan.

Tanzania

Despite Tanzania’s high-level political commitment to work with the FATF and ESAAMLG to address its strategic AML/CFT deficiencies, the FATF is not yet satisfied that Tanzania has made sufficient progress in implementing its action plan, and certain strategic deficiencies remain. Tanzania should work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets as well as implementing the UNSCR 1267 and 1373 through law, regulations or other enforceable means (Special Recommendation III); (3) establishing effective CDD measures (Recommendation 5); (4) establishing adequate record-keeping requirements (Recommendation 10); (5) establishing a fully operational and effectively functioning national Financial Intelligence Unit (Recommendation 26); and (6) designating competent authorities to ensure compliance with AML/CFT requirements (Recommendation 23). The FATF encourages Tanzania to address its remaining deficiencies and continue the process of implementing its action plan.

Thailand

Despite Thailand’s high-level political commitment to work with the FATF and APG to address its strategic AML/CFT deficiencies, the FATF is not yet satisfied that Thailand has made sufficient progress in implementing its action plan, and certain strategic deficiencies remain. Thailand should work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising terrorist financing (Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); and (3) further strengthening AML/CFT supervision (Recommendation 23). The FATF encourages Thailand to address its remaining deficiencies and continue the process of implementing its action plan.

Mauritius hosts the 23e Congrès des Notaires d’Afrique

2011-10-28T14:59:00.000+01:00

Mauritius is hosting the 23e Congrès des Notaires d’Afrique from 27 to 30 October 2011. Some 200 notaries public coming mainly from French-speaking African countries are attending this conference. The theme is La Pratique Notariale en Afrique: Etat des lieux et perspectives.

M. Jean Paul Decorps, Chairman of the Union Internationale du Notariat (UIN) and Mrs Régine Dooh-Collins, Chairperson of La Commission des Affaires Africaines (CAAF) are also attending this conference which is being held at Bel Ombre. The event is an initiative of the Association des Notaires de l’île Maurice (ANM) and CAAF.

In his address at the opening ceremony, the Attorney-General, Mr Yatin Varma, underlined the various roles of the notary public in assuring and maintaining legal security, which is a basis for economical prosperity.

Mrs Régine Dooh-Collins on her part stressed that the profession of the notary public on the African continent should be thoroughly examined and that participants should make recommendations which offer the notary the necessary means to improve his everyday duty and in turn ensure legal security in Africa.

The main objective of the Conference is to evaluate the different methods of work used in this profession and identify those that are proving to be most efficient in the current global economic situation.

This Conference is expected to provide an opportunity to take stock of the profession of the notary public in Africa and establish methods and practices to ensure legal security in Africa.

According to Mr Rajendra Dassyne, Chairman of ANM, in the near future Africa would be the ideal place to invest and hence the notary public would be called upon to play an important role as regards legal security.