OECD: Peer Review Report of Mauritius - Combined Phase 1 + Phase 2 - Executive Summary

1. This report summarises the legal and regulatory framework for transparency and exchange of information in Mauritius as well as practical implementation of that framework. The international standard, which is set out in the Global Forum’s Terms of Reference to Monitor and Review Progress Towards Transparency and Exchange of Information, is concerned with the availability of relevant information within a jurisdiction, the competent authority’s ability to gain access to that information, and in turn, whether that information can be effectively and timely exchanged with its exchange of information partners.
2. Mauritius is a small and open economy, dynamic, diversified and fully integrated into world markets. Financial services, including providers of services to the offshore sector, are the second pillar of the economy (in GDP). Today Mauritius has developed a legal and regulatory framework that gives its competent authority broad access to the full range of foreseeably relevant information. However, its access powers and enforcement remain to be tested in certain areas.
3. In line with the international movement towards more transparency and exchange of information, Mauritius recently has taken significant steps to enhance its exchange of information legal and regulatory framework. Mauritius is now able to exchange information on non-resident individuals and companies. There are accounting requirements for all Mauritius entities, resident and non-resident.
4. Mauritius has exchange of information mechanisms in force with 35 jurisdictions, which include most of its main trading partners, and continues negotiating new DTCs and TIEAs. While some of its oldest treaties do not meet the standard, most of them are under renegotiation. The Mauritian authorities also took preventive measures and introduced sanctions against alleged misuse of Mauritius’s treaty network. It is to be noted that Mauritius has never refused to sign an exchange of information agreement.
5. As a result of the steps taken, the legal framework for exchange is now largely in place, but also largely untested in practice, particularly concerning ownership and accounting information in the case of some of its offshore companies, since Mauritius did not exchange this type of information until July 2009.
6. Exchange of bank information is another area which is untested in practice. The assessment revealed that although bank secrecy does not prevent Mauritius’s authorities from accessing and exchanging information held by banks, its power to obtain information directly from the bank or through court order has remained so far untested. This too has raised concerns with some of Mauritius’s main treaty partners.
7. It is recognised that Mauritius is putting in place a national strategy for an efficient exchange of information system, and answers most requests within 90 days. The competent authority (Mauritius Revenue Authority) has created a team of professionals to answer exchange of information requests and is enhancing their professional capacities and methods to cope with difficult cases or complex requests. Mauritius’s competent authority has also signed memorandums of understanding with the public authorities that maintain relevant information. In particular, smooth communication and cooperation between the competent authority and the Financial Services Commission and the court will be key to address the two main issues of exchange of information on some offshore companies and bank information.
8. Given that the legal and regulatory framework of Mauritius in some aspects has not yet been tested in practice, and the element A.2 is not in place, the Global Forum will particularly follow-up the capacity of Mauritius to obtain and exchange ownership and accounting information on some of its offshore companies, as well as banking information. Further peer inputs and answers from Mauritius will be sought in 6 months of the adoption of the present report, to assess whether Mauritius exchanges these types of information effectively and in a timely manner.