Luxembourg - Mauritius DTA

According to preliminary media reports, Luxembourg and Mauritius signed a DTA Protocol on 28 January 2014.

Guernsey signs DTAs with Seychelles and Mauritius

Guernsey has completed two further bilateral Double Taxation Arrangements (DTAs).

The agreements with Mauritius and the Seychelles mean that Guernsey has now signed a total of 10 comprehensive DTAs.

Guernsey's Treasury and Resources Minister, Gavin St Pier, signed an agreement with the Republic of the Seychelles in London on 27 January 2014. The Agreement was co-signed with the High Commissioner for the Seychelles, HE Ms Marie-Pierre Lloyd.

The Treasury and Resources Minister said: "Since 2011, Guernsey has worked closely with member states of the Southern African Development Community to support those countries' ability to protect their tax revenue. These two DTAs are further illustration of that work, which is in line with the development aims of many organisations, not least the G8 and the OECD."

Guernsey's Minister for Commerce and Employment, Kevin Stewart, signed an agreement with the Republic of Mauritius in London on 17 December 2014. The Agreement was co-signed with the High Commissioner for Mauritius, HE Mr A. Kundasamy.

The Commerce and Employment Minister said: "Our links with countries such as Mauritius and the Seychelles are important. Not only do they have growing finance centres, but also island jurisdictions with whom we share many challenges, and can exchange expertise. Both jurisdictions complimented us on our tax transparency leadership. We reiterated our message that transparency has strengthened our competitiveness."

Report Questions Global Fight against Money Laundering and Terrorism

A report released today questions the effectiveness of the fight against worldwide money laundering and terrorist financing.

In the first independent assessment of the global system, a study conducted by the Center on Law and Globalization, titled Global Surveillance of Dirty Money, appraises efforts to rate countries by the International Monetary Fund (IMF) and Financial Action Task Force (FATF), an organization of advanced economies that sets the rules for control of money laundering and combating the financing of terrorism.

The FATF, IMF and other bodies rate more than 150 countries on whether they meet the FATF’s global standards by enacting laws, creating regulatory agencies, prosecuting offenders and confiscating moneys. The IMF, one of the largest of these assessing bodies, has had substantial influence on methods and practices of assessment in the worldwide regulation of moneys flowing from crime or to terrorists.

The fight against money laundering is costly. A full-scale system consumes extensive government resources in participating countries and makes heavy demands on the private sector. The report finds that the struggle to control money laundering is at a turning point.

Major international banks in the UK, US and Europe have admitted to massive violations of money laundering controls over long periods, indicating that highly developed anti- money laundering systems have not worked well in countries whose economies are systemically important to international financial markets.

The methods and scope of global surveillance of financial transactions by individuals, companies and non-profits are also engendering public debate. Just last year, the FATF revised its ratings system to place a much heavier emphasis on whether nations are in fact controlling money laundering and terrorist financing. In dozens of interviews with IMF and FATF staff, country officials, and private sector specialists, the Center on Law and Globalization studied country assessments conducted by the IMF before 2012 and appraises the promise of reforms under the new standards and methods.

The IMF has welcomed scrutiny of its practices. Global regulation specialist,

Terence Halliday, co-author of the report, points to hard questions the IMF has posed in recent years about the goals and effectiveness of the Anti-Money Laundering and Combating the Finance of Terrorism (AML/CFT) system. Said Halliday, “The Fund has been self-critical and experimental in efforts to refine methods, and to examine from the ‘bottom-up’ whether AML/CFT interventions do what they promise.”

The report examines five critical questions in the assessment of anti-money laundering standards:

1. What are the goals of global surveillance?

Until as recently as 2012 the precise objectives were unclear.

The FATF assumed that more regulations and stiffer penalties applied to more and more areas of economic life would make it noticeably much harder to launder money or finance terrorism.

The IMF expected that if countries adopted the global standards, then crime would decline, corrupting effects of dirty money would be contained, and the result would be heightened integrity and stability of country financial systems.

The 2013 Methodology adopted recently by the FATF, with the substantial input of the IMF, has significantly sharpened objectives. Most importantly, says European specialist on economic and organized crime, Michael Levi, co-author of the report, “countries will be required to show that new laws and practices actually make a difference to the level of crime, proceeds of crime, and extent of money laundering.”

While this shift in emphasis offers better chances to judge whether positive outcomes result from implementation of the standards, the report warns that it will take years to test whether objectives are met and investments in financial regulation yield a net positive return.

2. What do assessments of anti-money laundering standards tell us?

Past methods for doing national assessments may reveal very little about what works.

There is no doubt that since 2000 most countries have more AML laws and have extended the scope of their surveillance activities. More people are convicted of money laundering, and countries are better prepared to cooperate with each other against serious crimes and to seize proceeds.

There is considerable doubt about the quality of data employed to judge success. The state of the art on determining how much money is generated from criminal activity is weak.

A future focus on risk analysis has promise, states Peter Reuter, a policy researcher specializing in illegal markets, and co-author of the report, “because it sharpens policy decisions and permits efficient allocations of resources.” He added, “However, the science of risk analysis is poorly developed for money laundering, and it is currently impossible to judge relative risk on an objective and systematic basis.”

Methods for collecting data between 2001 and 2012 were “well behind the state of the art.” Although the FATF has signaled that assessments through 2020 will rely on better data, it does not say how. Data gathering problems will continue for the foreseeable future.

3. What works?

The large political effort to create AML regimes has established a better basis for avoiding the ‘beggar my neighbor’ global deregulation in which financial services and others had little or no responsibility for harms inflicted elsewhere, whether inside or outside their countries.

Yet, the report states that “no credible scientific evidence has yet been presented that there is a direct relationship between installation of effective AML/CFT regimes and the IMF mandates to produce domestic and international financial stability.” Neither is there convincing evidence, said Reuter, “that proceeds of crime are reduced or crime itself is better controlled with anti-money laundering measures.”

Despite the lack of convincing evidence, “it is entirely possible,” said Levi, “that better laws and better tools for fighting the circulation of dirty money do lower certain crimes. But they have not been successful in stopping some huge money laundering schemes by big banks in the U.S. and Britain.”

4. Can global standards work everywhere?

The report questions whether all countries, sooner or later, will be able meet global standards. Critics charge that a “one-size-fits-all” approach makes little sense. Assessors are required to assume, said Halliday, “that a system will work no matter how corrupt a government, how weak its public administration, how flawed its justice system.” The IMF and the FATF believe that a more tailored approach to countries is more realistic and more likely to succeed.

The report recommends that national leaders should have more discretion to create alternative ways to meet the FATF standards so that local solutions can be fitted to particular circumstances. “From now on,” said Reuter, “assessors need to look for new ideas and applaud new ways of reducing crime and the circulation of dirty money.”

5. What are the costs and benefits?

Surprisingly, the report finds that no cost-benefit analysis has ever been undertaken of anti-money laundering efforts globally or even regionally. The report states that “the FATF system has proceeded as if it produces only public and private ‘goods,’ not public or private ‘bads.’” There is no evidence that any governments have made rigorous efforts to weigh costs against benefits.

The report concludes that if the FATF system cannot show benefits it will risk a loss of legitimacy: “failure to show that benefits outweigh costs may lead to greater passive and active efforts not to comply.”

Anti-money laundering systems can produce political harms. Humanitarian harms may be inflicted, says a report to the Nairobi Forum, when efforts to control money laundering lead banks to cut down overseas remittances “to the most vulnerable populations in the poorest countries.”

Overall, the report cites the forthright recognition of many problems that the IMF and the FATF have identified from their experiences of assessments in the past decade. Some significant changes to the methods for assessments offer much promise for more flexible, adaptive and appropriate responses to dirty money that might harm economies or support terrorism.

The IMF has shown itself to be an innovator. Halliday believes this openness “augurs well for fresh approaches to tough issues.” The next few years, he said, “will begin to provide answers to the hard questions. Will objectives be met? Can flexible adaptations of the standards to local circumstances reduce money laundering? Will the new methods of assessing countries help or hinder the global fight against terrorism and money laundering?”

Terence Halliday is Co-Director and Research Professor, Center on Law and Globalization (American Bar Foundation and University of Illinois College of Law) and co-author of Bankrupt: Global Lawmaking and Systemic Financial Crisis.

Michael Levi is Professor of Criminology, Centre for Crime, Law and Justice, Cardiff University, and co-author of Drugs and Money: Managing the Drug Trade and Crime Money in Europe.

Peter Reuter is Professor of Public Policy and Criminology at the University of Maryland, and co-author of Chasing Dirty Money: The Fight against Money-Laundering.

Mauritius: Titan Corporate Services Limited has moved

Titan Corporate Services Limited has moved offices to:

Office 122, Grand Baie Business Centre, Grand Baie, Mauritius

Theo De Regibus, Titan's Chairman, comments "the move to our new office went smoothly and means more space for expansion as our business continues to grow every day. Titan is also engaged in an extensive technical overhaul of all of its systems and is developing a state of the art case management system which will bring huge benefits to all our clients".

Titan Corporate Services is a fully licensed Trust and Company Service Provider based in Mauritius providing offshore company formation and trust management.

Our expertise is based on highly qualified staff with over 60 years of collective expertise in providing solutions in tax planning, global wealth structuring, asset protection, offshore company formation and trust management.

Mauritius is a political and financially stable democracy which has welcomed foreign investors and business for many years. The financial, communications and professional infrastructure is designed to meet the demands of international business and tax practitioners. Mauritius company formation is fast and efficient.

Foreign Account Taxation Compliance Act - Signature of Agreement between Mauritius and United States of America

The Government of the Republic of Mauritius and the Government of the United States of America (US) signed a Tax Information Exchange Agreement (TIEA) and an Inter-governmental Agreement (IGA), for the implementation of the Foreign Account Tax Compliance Act (FATCA) between the two countries on 27 December 2013 in Port Louis, Mauritius. 

The objective of the FATCA, enacted in March 2010 by the US authorities, is to identify US persons behind foreign financial holdings and communicate their corresponding investment information, namely their names, addresses, account numbers, account balances and incomes derived from such investments to the US Inland Revenue Service (IRS). 

The FATCA provides that unless a foreign financial institution (FFI) has an FFI agreement with the US IRS or is located in a jurisdiction that has an IGA with the US, a 30 percent withholding tax will be applied to payments of certain US-sourced income such as interests, dividends and insurance premiums made to the FFI. 

Under the IGA, the Competent Authorities of Mauritius and the US shall obtain information required on all reportable accounts and shall annually exchange this information on an automatic basis. Individual FFIs will not have to register directly with the US IRS. 

The Financial Services Commission will provide further information to its licensees once the Ministry of Finance and Economic Development finalises the Regulations for the implementation of the IGA and TIEA.

Mauritius: FSC issues Circular Letter on Register of Reporting Issuers

Mauritius: FSC issues Circular Letter on Register of Reporting Issuers

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Outrigger Mauritius Resort and Spa Now Open

Outrigger Enterprises Group is pleased to announce the opening of the Outrigger Mauritius Resort and Spa, which welcomed its first guests on January 30, 2014 (Mauritius time). The deluxe 181-room, all sea-view resort is the first for Outrigger in the Indian Ocean and the company’s 45th property now open or under development in eight countries.

“The expansion of the Outrigger brand into the Indian Ocean is the latest development showing the strategic commitment of Outrigger to open stunning resorts in desirable and iconic warm water beachfront locations around the world,” said Darren Edmonstone, managing director, Asia-Pacific, Outrigger Hotels and Resorts.

“Ownership of the property in Mauritius gives Outrigger the unique opportunity to share the locally-rich sense of place and discovery that guests look for when they go on holiday,” he said. “The wonderful warmth, color and exotic mixes that characterize Mauritius can now be experienced at the new Outrigger Mauritius Resort and Spa,” he added.

The Republic of Mauritius is located 2,000 kms off the southeast coast of Africa and 1,100 kms from the east coast of Madagascar. In Mauritius the absolute beachfront property has an idyllic location on the southern tip of the island in the Bel Ombre nature reserve, adjacent to the Heritage Golf Club. 

The new Outrigger resort is surrounded on the landward side by expansive sugar cane plantations.

Outrigger purchased the property in May 2013 and has completed an extensive refurbishment program.

The Outrigger Mauritius Resort and Spa General Manager, Frederic Chretien, said: “The Outrigger dream for Mauritius has come true. From today we are delivering our acclaimed Outrigger hospitality that blends the needs of the most discerning traveller with the charm and tradition of an early 17th century Mauritian sugar cane plantation on the island’s southern coast.”

Getting to Mauritius from Asia, Australia, the Middle East, Europe and Africa is easy. Direct flights connect Mauritius with Perth, Beijing, Shanghai, Hong Kong, Chennai, Delhi, Mumbai, Kuala Lumpur, Singapore, Paris, London, Dubai, Johannesburg and numerous cities in Africa.

The new Outrigger Mauritius Resort and Spa is a 45-minute drive from the island’s international airport (MRU) and a 90-minute drive from the capital, Port Louis.

Outrigger will host an official grand opening ceremony and celebration on April 18th of this year.

Jersey Finance highlights its plans and priorities for 2014

An outline of Jersey Finance’s promotional activities for the year ahead and a review of key developments in 2013 was provided today at Jersey Finance’s Annual Review presentation held at the Hotel de France. Hosted by Jersey Finance Chairman, Jonathan White, it included a key note address from Chief Minister, Senator Ian Gorst.

The audience was told that while London remains a core market for the Industry, building a strong presence in international markets would continue to be a key part of the plan in 2014.   Jersey Finance therefore plans to extend the Industry’s global reach through visits to key markets and through on-ground representation in Shanghai.

Further, in addition to the increasing activity in Greater China, there will be visits to the Gulf and India where Jersey Finance already has representation, as well as Russia and Africa.

Geoff Cook, CEO, Jersey Finance, commented:

‘As part of our plans for 2014, we have recruited a new business development manager in London, we also plan to increase resource in Africa, appoint an additional representative in the Gulf based in Dubai and plan to launch our Shanghai launchpad office later this year.’

He highlighted especially the growth potential of the funds industry in 2014 where Jersey was well placed to capture the upside in the UK recovery.

‘In particular Sovereign wealth funds, funds, ultra high net worth investors and private equity were all actively investing in the UK property market currently, a market where Jersey has such great strength and where we have the reputation as the real estate structuring centre for the European market.’

In respect of key industry developments in 2013, Jersey’s banking sector continued to attract capital from across the world including rising amounts from the Middle East which now accounts for 14% of the total, while the net asset value of funds administered and managed in Jersey rose during the year, climbing above the £200 billion level at one point.  Capital markets business also grew, with close to 105 registered Jersey companies listed on global stock exchanges with a market capitalisation of £157bn, providing global companies with a gateway to London’s capital markets and, in the private client sector, it was calculated for the first time that around £1/2 trillion worth of assets are held in Jersey trusts and Special Purpose Vehicles (SPVs) by private individuals.

Geoff Cook described 2013 as another challenging year but one which had seen significant advances on ‘our journey to 2015 plan’ to increase Jersey’s leadership as an International Finance Centre (IFC)

Two heavyweight reports completed in 2013 made significant contributions to extending the Industry’s global reach as to both products and markets.

The ‘Finance Industry Strategic Jurisdictional Review’ identified key opportunities and challenges for Jersey and set out a plan designed to sustain the success of the Industry. The Government, Regulator and Industry have all joined forces to oversee the report’s implementation and it remains a priority for 2014.

The publication of the Capital Economics ‘Jersey’s Value to Britain’ report highlighted for the first time the true value Jersey provides to the UK, for instance in supporting 180,000 UK jobs and in being a conduit for around £ ½ trillion of foreign investment into the UK. The report gained significant coverage in Jersey and the UK and has proved invaluable in influencing politicians and opinion-formers.

Also in 2013, Jersey supported the G20 Action Plan and the EU G5 project for automatic exchange of information, agreeing to automatic exchange of information under the EU Savings Directive, and signing up to the US Foreign Account Tax Compliance Act and an inter-governmental agreement with the UK.

Geoff Cook said:

Jersey’s support for cooperation and transparency in taxation matters will continue to form part of our strategy in 2014. Jersey’s message is being heard in senior circles, and we need to capitalise on that.

Jonathan White, Chairman of Jersey Finance, added:

Working closely with the Jersey Government and the Jersey Financial Services Commission, we have put the Island at the forefront of efforts to increase co-operation and transparency in taxation and related issues.  This has been essential in maintaining awareness of Jersey as a well regulated IFC making a vital contribution to the world’s economy.’

He continued:

‘Another important achievement in 2013 has been the enhancement of Jersey’s legal and regulatory framework required as a result of the EU’s Alternative Investment Fund Managers Directive (AIFMD). The result has been to maintain open access to European markets, while preserving the ability of fund managers to work in non-European markets as they do now.’

The event included a question and answer session in which moderator, Gary Burgess, from ITV, Jersey, interviewed Joe Moynihan, Director of Financial Services, States of Jersey, John Harris, Director General of the Jersey Financial Services Commission, Ben Robins, Chairman, the Jersey Funds Association and Geoff Cook about the Industry’s progress and status.

The FT Global MBA rankings 2014

Heavyweight schools retain their hold on the higher reaches

The FT ranking is based on two surveys of the business schools and their alumni who graduated in 2010. MBA programmes are assessed according to the career progression of their alumni, the school’s idea generation and the diversity of students and faculty.

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The Quest for Non-Resource-Based FDI: Do Taxes Matter?

Using manufacturing and services firm-level data for 30 sub-Saharan African (SSA) countries, this paper shows that taxation is not a significant driver for the location of foreign firms in SSA, while other investment climate factors, such as infrastructure, human capital, and institutions, are. By analyzing disaggregate FDI data, the paper establishes that, while there is considerable contrast in behavior between vertical FDI (foreign firms producing for export) and horizontal FDI (foreign firms producing for local markets), taxation is not a key determinant for either type of FDI. Horizontal FDI is attracted to areas with higher trade regulations, highlighting interest in protected markets. Furthermore, horizontal FDI is affected more by financing and human capital constraints, and less by infrastructure and institutional constraints, than is vertical FDI.

Mauritius: FSC Disqualification of Officer- Mr. Rajarengan Rajaratnam

The Financial Services Commission, Mauritius (the "FSC") would like to inform the public that Mr. Rajarengan Rajaratnam has been disqualified with immediate effect from holding office and/or position in any licensee of the FSC for a period of eleven (11) years pursuant to section 7(1)(c)(iv) of the Financial Services Act 2007.

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Vistra Singapore wins 'Trust Company of the Year' Award

Vistra Singapore has received an award for 'Trust Company of the Year' at the Citywealth International Financial Centre Awards held on 23 January at the Grange City Hotel in London.

Now in their third year, the Citywealth International Financial Centre Awards were established to highlight the excellence of the advisors and managers in the private wealth sector in the major international financial centres. The Awards are judged by an international panel of highly respected practitioners from all sectors with experience of working with advisors in all the jurisdictions covered. Winners are those judged to have excelled in achievement, innovation, expertise and service.

Jean-Pierre Koolmees, Managing Director of Vistra Singapore who accepted the Award, said: "We are delighted to have won. It is a great honour and I would like to thank our clients for their continued support, as well as the Vistra team for their hard work and dedication."

Nominees included Asiaciti Trust, Portcullis Trust, Rothschild Trust, Trident Trust and Walkers.

Starwood Hotels & Resorts to Debut Its Westin Hotels & Resorts Brand in Mauritius with the New Westin Turtle Bay Resort & Spa, Mauritius

Starwood Hotels & Resorts Worldwide, Inc. announced that it will soon introduce its Westin Hotels & Resorts brand to the island of Mauritius. Owned by Blue Ocean Park Ltd., The Westin Turtle Bay Resort & Spa, Mauritius is scheduled to open in spring 2014. The resort will enjoy a pristine beachfront location in the historic Turtle Bay of Balaclava – the former breeding grounds of the Mauritian green sea turtle – on the North West coast of Mauritius, offering captivating views on the turquoise waves of the Indian Ocean.

“I would like to thank our long-standing partner Blue Ocean Park for putting their trust in us as we debut the Westin brand in Mauritius,” said Michael Wale, President, Starwood Hotels & Resorts, Europe, Africa and Middle East. “Mauritius is known to be a melting pot of the past and present, and its natural beauty and stunning landscapes provide an oasis of peace and tranquility for today’s busy traveler. We believe that our Westin brand is the ideal fit for this destination thanks to its signature programs and amenities, which are designed to help guests recharge and revitalize so when they return home they feel better than when they arrived.”

“We are delighted to expand our partnership with Starwood to introduce the Westin brand,” said Mr. Ashok Uttamchandani, owner of Blue Ocean Park. “The Westin Turtle Bay Resort & Spa will offer visitors a unique wellness experience in one of the most beautiful locations in Mauritius.”

Nestled in lush tropical gardens and surrounded by sugarcane fields and mountains, the 190 beautifully appointed guest rooms, including 38 suites, will be designed to embrace the natural beauty of the resort’s unique scenery. All rooms will feature the renowned Westin Heavenly Bed®, the brand’s Heavenly® Shower, Heavenly® Robe and exclusive White Tea Aloe bath amenities, as well as the latest in-room technology. The Westin Turtle Bay Resort & Spa, Mauritius will also offer five dining venues, including an all-day dining restaurant, two specialty restaurants, a pool restaurant and bar, as well as a lobby lounge.

The Westin Turtle Bay Resort & Spa, Mauritius will feature nearly 340 square meters of ultra-modern event space, including a ballroom, two meeting rooms and a fully-equipped business center, making it the perfect getaway for weddings, special occasions or small incentive meetings. Guests can find total relaxation at The Heavenly Spa by Westin™ offering an array of treatments dedicated to well-being, take a rejuvenating swim in one of the two swimming pools or exercise at WestinWORKOUT® where state-of-the-art equipment for optimum cardio and weight training, steam rooms, saunas and Jacuzzis are at disposal.

Other signature Westin amenities will include the Superfoods RX™ menu designed to treat guests to exceptional food combinations rich in nutrients, antioxidants and flavour, as well as the Westin Kids Club® that allows families to indulge in services, amenities and meals customised to the needs of their little ones.

“The signing of The Westin Turtle Bay Resort & Spa, Mauritius further underscores Starwood’s commitment to growing our portfolio across all of our nine brands in Africa,” said Bart Carnahan, Senior Vice President Acquisitions & Development, Starwood Hotels & Resorts, Europe, Africa & Middle East. “On track to open its 200th hotel in 2014, Westin has created unwavering guest loyalty and tremendous enthusiasm among owners and developers around the world.”

The Westin Turtle Bay Resort & Spa, Mauritius is located only 15 kilometers from the island's hub, Grand Baie, which is known for its shopping, restaurants, bars and nightlife. The Marine Nature Park is adjacent to the resort and provides an excellent alternative for those wishing to enjoy a leisurely stroll through relaxing and scenic surroundings.

Starwood currently operates two resorts in Mauritius, including The St. Regis Mauritius, which is located directly on the world-famous ‘One Eye’ kite-surfing spot and the pristine white beaches at the UNESCO World Heritage site of Le Morne, and Le Méridien Ile Maurice, which is located on the North West coast bay of Pointe Aux Piments.

Constance Hotels brings leading French winemakers to Mauritius

Head sommelier Jerome Faure is thrilled to be welcoming leading French winemakers from Domaine Alain Graillot and Chateau de Mille to Constance Belle Mare Plage and Constance Le Prince Maurice, Mauritius in January and February.

Chateau de Mille

Pierre Pinatel is the owner of Chateau de Mille, one of the oldest properties in the Luberon region.

The chateau was built as a summer retreat for the popes of the 14th century when the first vineyards were planted. Today the small yield wine is still produced here in a traditional way.

Domaine Alain Graillot

Maxime Graillot now runs the famous Domaine Alain Graillot in the Crozes-Hermitage region using the same traditional, artisan methods established by his father.

The grapes are picked by hand and no chemical weedkillers are used in the production of its complete Syrah-based reds or its 80 per cent Marsanne / 20 per cent Roussanne whites.

Pierre Pinatel and Maxime Graillot will be visiting Constance Le Prince Maurice and Constance Belle Mare Plage to host a series of exclusive wine dinners for guests.

Domaine Alain Graillot wine dinners

25 January – Constance Belle Mare Plage, Blue Penny Café

29 January – Constance Le Prince Maurice 

Chateau de Mille wine dinners

7 February – Constance Belle Mare Plage, Blue Penny Café

8 February – Constance Le Prince Maurice (including a special vertical tasting of 10 vintages from 1998 to 2009)

Mauritius: FSC Public Notice - Cancellation of suspension COPEX Management

The Financial Services Commission, Mauritius refers to its public notice dated 30 October 2013 with respect to the suspension with immediate effect of the Management Licence of COPEX Management Services Limited.

We would like to inform the public that the suspension of the Management Licence of COPEX Management Services Limited has been cancelled on 22 January 2014.

Mauritius: FSC Public Notice - Cancellation of suspension COPEX Trustees

The Financial Services Commission, Mauritius refers to its public notice dated 30 October 2013 with respect to the suspension with immediate effect of the Licence of COPEX Trustees Limited.

We would like to inform the public that the suspension of the Licence of COPEX Trustees Limited has been cancelled on 22 January 2014.

France confirms removal of Jersey from list of non-cooperative jurisdictions

The French Government has confirmed formally that Jersey has been removed, with effect from 1 January 2014, from the list of jurisdictions considered to be non-cooperative in the exchange of tax information.

An order (arrêtée) was published by Pierre Moscovici, the Minister for the Economy and Finance, on Sunday 19 January 2014 confirming that the criteria for tax cooperation with France had been met by Jersey and that the Island had therefore been removed from the list. 

Responding to the French Government’s announcement, the Minister for External Relations, Senator Sir Philip Bailhache, said: "We have always seen ourselves as a cooperative jurisdiction, a view shared by the organisations responsible for setting international standards.

“We remain committed to a collaborative exchange of tax information under specific agreements and will continue to work alongside France in the framework of the OECD and other institutions in the development and implementation of new international standards.”

Since August, Jersey has demonstrated to the French authorities that the Island is fully committed to cooperative exchange of information under Tax Information Exchange Agreements (TIEAs), including the Jersey/France agreement. 

Mauritian Economy among the most Favorable in Sub-Saharan Africa, says Mr Agapito Mendes Dias

The Mauritian economy is among the most favorable in Sub-Saharan Africa, said the Executive Director representing Mauritius on the Board of the World Bank, Mr Agapito Mendes Dias from the small island state of Sao Tome and Principe.

He was speaking at a press conference yesterday afternoon in Port Louis where he highlighted the resilience of the Mauritian economy in the face of the global financial crisis. He further stated that the economy is on the right track and that the country should continue on that path to face the daunting challenges and the fierce competition on the global front.

According to him, the Mauritian economy is also a top performer in the list of the 22 Franco-African countries which he represents. They are namely: Benin, Burkina Faso, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Cote d’Ivoire, Democratic Republic of the Congo, Djibouti, Equatorial Guinea, Gabon, Guinea, Guinea Bissau, Madagascar, Mali, Mauritania, Niger, Republic of Congo, Sao Tome and Principe, Senegal and Togo.

Mr Agapito Mendes Dias is currently on a one-week official visit in Mauritius to better examine the Mauritian economy in the wake of the upcoming challenges. The outcome will eventually serve as purpose for the latter to understand further the Mauritian economy thus allowing the World Bank to provide more support to help the country maintain its economic performance.

It will be recalled that earlier yesterday the Executive Director also met the Acting Prime Minister, Vice-Prime Minister, Minister of Finance and Economic Development, Mr Xavier-Luc Duval, with whom he discussed about strengthening relations between the World Bank and Mauritius.

Other issues raised were how to gain a better understanding of the nature and type of support Mauritius needs from the World Bank and how Mauritius can help or be used as a model for other African countries.

In this context, several site visits have been organised to show case what an island state can do and explore how the Mauritian experience can be replicated namely in the Sao Tome and Principe.

Both parties also expressed interest to collaborate in various sectors among which Hydrocarbon and Deep Sea Mineral Mining sector; Social Protection; Inclusive growth, Labour and Inequality Assessment.

The World Bank has so far provided both financial and technical support to the Government of Mauritius in implementing various projects. They are among others: a loan of USD 50 million in 2009 for Mauritius Infrastructure project (MIP) relating to road projects and technical assistance and institutional development in transport, water, wastewater and energy sector; a grant of USD 1.7 million to support SIDS DOCK programme for preparation of Grid Code feed-in tariff and model energy supply purchase agreement for renewable energy systems greater than 50 KW.

World Finance: Mastering the Mauritian insurance market

Mumbai-based New India Assurance Company is streamlining its services to better negotiate the challenging Mauritian insurance market

The insurance market in Mauritius – as with the wider island economy – is small yet dynamic, and best characterised by emerging opportunities for growth. Although the market is naturally quite limited in scale, it is nonetheless occupied by as many as...

www.worldfinance.com/wealth-management/mastering-the-mauritian-insurance-market

Guernsey still leads in LSE listings, added most in 2013

Guernsey has more entities listed on the London Stock Exchange (LSE) than any other jurisdiction globally (excluding the UK), according to new figures from the market authority.

LSE data shows that at the end of December 2013 there were 115 Guernsey-incorporated entities listed on the Main Market, the Alternative Investment Market (AIM) and the Specialist Fund Market (SFM).

This is significantly more than the major economic powers of the US (37), Australia and Russia (both 30), India (29), South Africa (8), Germany (6), China (4) and France (3). It was also well ahead of competitor centres Jersey (88), Ireland and the Isle of Man (both 51), Cayman (50), Bermuda (45) and BVI (42). These are trailed by Luxembourg (11), Singapore (6), Gibraltar (5), Hong Kong (3) and Malta (1).

Guernsey added 17 new entities to the LSE markets during last year, which is more than any other jurisdiction except the UK. Jersey added 12, Cayman 9, BVI 7, and Bermuda and Ireland each listed 3 entities.

Fiona Le Poidevin, Chief Executive of Guernsey Finance - the promotional agency for the Island's finance industry, said: "Guernsey became home to some particularly notable LSE listings during 2013, including three major energy funds. This, together with the fact that we added more entities to the market last year than any other centre outside of the UK, shows the high regard in which our infrastructure and expertise is held by professional advisers in the City of London and beyond.

"Indeed, these figures highlight that Guernsey is the jurisdiction of choice for non-UK LSE listings and reaffirm that there are more Guernsey incorporated companies and securities on the exchange than from any other jurisdiction globally, with the exception of the UK."

Guernsey has a particularly strong reputation for listed funds, investing across a wide range of asset classes. Those listing on the LSE during 2013 included two prominent renewable energy funds, Bluefield Solar Income Fund and The Renewables Infrastructure Group, with city sources quoting the latter as the largest IPO of a clean energy firm in London. In addition, there has been another listed energy investment vehicle in the form of the US$1.2 billion Riverstone Energy Limited, which in October became the largest cross-border IPO since November 2012.

Figures from the LSE show that, of its peer group, Guernsey (68) has the most number of entities listed on the Main Market of the LSE, followed by Jersey (40), Ireland (25), BVI (22) and Bermuda (21).

Guernsey has 34 entities listed on AIM and 13 of the total 20 listings on SFM.

In addition, Guernsey (71) is the clear market leader in terms of the number of 'Equity Investment Instruments' - the majority of investment funds - listed on the LSE, followed by Jersey (17) and Cayman (11).

Miss Le Poidevin said: "Guernsey is an extremely popular location for establishing vehicles which will list on the LSE, whether the Main Market, AIM or SFM. However, companies incorporated in Guernsey can also list on the local Channel Islands Securities Exchange (CISE), Euronext Amsterdam, markets in Australia, Johannesburg, Toronto and Frankfurt, as well as the Hong Kong Stock Exchange (HKEx), among many other exchanges around the world. This means that Guernsey provides an ideal gateway to global capital markets, including investment out of and into the emerging markets."

January 2014 Eurekahedge Report

The Eurekahedge Report turns its focus to the US$2.0 trillion global hedge funds sector along with the latest capital flows and top performers. It also features interviews with Daniel von Allmen of Progressive Capital Partners; managing a fund of hedge fund, and Talib Dohadwala of Integral Capital Partners; managing an Asia-based long-only absolute return fund.

Highlights from this month's report:

• Total assets in the hedge fund industry increased by almost 13% during the year to breach the US$2.0 trillion mark
• Hedge funds realised their best year of performance-based gains since 2010, raking in US$100 billion during the year, with long/short equities strategies accounting for almost half of this gain
• Net asset allocations to hedge funds stood at US$130 billion in 2013, with long/short equities managers witnessing net inflows of US$82.2 billion during the year
• European hedge fund managers were up 8.77% in 2013 with net asset inflows for the year standing at US$60.2 billion – the highest level on record 
• North American long/short equities hedge funds ended the year with gains of 18.48%, with 20% of these hedge fund managers outperforming the S&P500 Index by an average of 20.52% during the year
• Asian hedge funds outperformed their global peers and were up 15.86% in 2013, with fund managers recording net asset inflows of US$11 billion during the year – the highest level on record since 2007
• Japanese hedge funds remained ahead of other regions, up 26.77% with pure Japan mandated funds recording net inflows of US$700 million since June 2013
• Greater China focused hedge funds were up 19.39% in 2013, outperforming the Hang Seng Index by more than 16%
• Distressed debt hedge funds have delivered the best returns among all strategies and were up 17.95% in 2013

Song Appeals to the international Hindu Community to Speak out for the Monkeys of Mauritius

The Save Our Monkeys Mauritius campaign is appealing to the international Hindu community to end the trade in monkeys for research in Mauritius. The appeal has been launched with the international release of a powerful new song sung in Hindi calling on Hindus who worship the monkey god, Lord Hanuman, to speak out for the exploited monkeys in Mauritius. Hanuman is one of the most popular idols in the Hindu religion and is worshiped as a symbol of physical strength, perseverance and devotion.

The video is available here

The audio is available here

Mauritius is one of the world’s largest suppliers of primates (long-tailed macaques) for the research industry, exporting many thousands of animals each year primarily to the USA and Europe. The animals, trapped in the wild, are bred in their thousands in large-scale facilities on the island. They spend their lives behind bars; their infants taken away from them to be later exported to suffer and die in laboratories around the world.

The song, entitled Vaanaron Ka Udhaar (Save the Monkeys) along with the music and arrangement, was composed by Anand Nithoo and is sung by Paras Deshmukh. It asks why the Hindu community can continue to worship and pray to Hanuman when such terrible cruelty and suffering is being inflicted on the monkey population in Mauritius.

Anand Nithoo stated: ‘Mauritius is known as Paradise Island but it needs to be paradise for everybody, including animals. The very concept of Hindu culture emphasises the spiritual equality of all living beings. This song is an appeal to everybody who worships Lord Hanuman. For Maha Shivratree, more than 400,000 people go to Ganga Talao to pray.  How can we pray yet at the same time allow such cruelty to happen to monkeys here in Mauritius? I urge the Hindu community to speak out against this suffering.’

India banned the export of its population of macaque monkeys for research in 1978 following a widespread outcry. Save our Monkeys believes that Mauritius can and should follow India’s lead and take a positive stand against the monkey trade.  

TAKE ACTION

Please watch share the Save Our Monkeys song

Please sign and share our petition calling on the Mauritius Government to stop the cruel monkey trade

For further information about the campaign visit www.buav.org/Mauritius

ILS helps Guernsey license 89 international insurers in 2013

The Guernsey Financial Services Commission (GFSC) licensed 89 new international insurers during 2013.

This includes 10 limited companies, 6 Protected Cell Companies (PCCs), 63 PCC cells, 2 Incorporated Cell Companies (ICCs) and 8 ICC cells. 

It means that there were 758 international insurers licensed in the Island at the end of December 2013. This number comprises 242 limited companies, 69 PCCs, 414 PCC cells, 7 ICCs and 26 ICC cells.

It compares to a total of 737 international insurers being licensed by the GFSC at the end of December 2012, which means there has been net growth of 21 entities during the year.

Fiona Le Poidevin, Chief Executive of Guernsey Finance - the promotional agency for the Island's finance industry, said that a significant proportion of the licences issued last year were associated with structures related to Insurance Linked Securities (ILS).

She said: "It is pleasing to see that Guernsey remains a popular international insurance centre. These figures build on last year's very strong performance and together mean that nearly 200 international insurance entities have been licensed in the Island during the last 24 months. The increases continue across the different types of entities, although there is particularly strong growth in PCC and ICC cells and especially in relation to ILS structures.

"Guernsey's international insurance expertise, our close proximity to both London and Zurich and our access to major global capital markets mean that we are increasingly viewed as a centre of choice for ILS. We are looking to build on this during 2014 through a number of different marketing and promotional activities which will highlight that Guernsey not only has a particularly experienced insurance sector but also a large investment funds community so is able to bring together both sides of the ILS equation."

The Guernsey office of Bedell Cristin acted in an ILS deal that received an accolade from Islamic Finance News. It was judged the top deal in the European category and one of the Islamic finance deals of the year in 2013.

The Bedell Cristin legal team in Guernsey, led by Partner Mark Helyar, was instrumental in devising the structure, the Salam III, Sukuk Wakalah Programme, on behalf of the European insurance group FWU AG. The deal was US$100 million in size and the first tranche of US$20 million closed in October.

Bedell Cristin was Guernsey counsel to the issue and the issuer and worked alongside the European Islamic Investment Bank, Rasmala Group and legal firm Morgan, Lewis and Bockius. Aon Guernsey was appointed as the insurance manager and a primary listing is being sought on the Channel Islands Securities Exchange (CISE).

Islamic Finance News, described as the world's leading Islamic Finance News provider, judged this deal to have stood out as innovative among the deals undertaken in Europe in 2013.

Paul Sykes, Managing Director of Aon Guernsey and Chairman of the Guernsey International Insurance Association (GIIA), said: "Guernsey continues to provide an attractive environment for establishing a wide variety of international insurance entities, including ILS structures, and we see significant opportunities for growth in the management of Sharia compliant insurance products. Of particular importance is our regulatory regime which continues to respond to innovative proposals while also offering proportionality through meeting the insurance core principles of the International Associated of Insurance Supervisors (IAIS).

"Indeed, the European Captive Insurance and Reinsurance Owners' Association (ECIROA) recently highlighted that Solvency II is now due to be implemented from 2016 and, as it stands, eight out of 10 European captives would fail to qualify for simplified solvency capital treatment under its provisions. ECIROA added that if the rules go unchanged many captives will be forced to close or move outside of the EU to escape the onerous capital and reporting requirements required under Solvency II.

"Guernsey announced in January 2011 that there were no immediate plans to seek equivalence with Solvency II and that decision has provided our clients with certainty regarding our regulatory regime. Guernsey's solvency regime is being evolved within the IAIS framework which properly recognises captive insurance companies and we expect that it will continue to be viewed positively by our client base in the future."

Guernsey was named 'European captive domicile of the year' at the UK Captive Services Awards 2013 and independent research carried out by trade publication Business Insurance in March 2013 ranked Guernsey as the largest captive insurance domicile in Europe and number four in the world.

The most recent information from the GFSC shows that Guernsey's international insurance industry had gross assets, net worth and premiums of £22.90 billion, £9.34 billion and £4.63 billion respectively in 2012.

Presentation on Building Mauritius as a Competitive International Financial Centre (IFC) - A Roadmap for the Mauritian Financial Services Industry

The Financial Services Commission (‘FSC’) hosted a presentation by Dr. Percy Mistry on his report on “Building Mauritius as a Competitive International Financial Centre (IFC) - A Roadmap for the Mauritian Financial Services Industry” at the FSC House on 15 January 2014.

Dr. Mistry is the Chairman and CEO of Oxford International Group (OIG) and the Principal Advisor to key multinational and sovereign clients (India and Mauritius). He is a renowned consultant providing strategic advice to governments, transnational corporations, aid agencies, UN agencies and international financial institutions. He specialises in advice on institutional structures, policies and regulatory regimes in the financial systems of emerging markets and advises governments on economic development; development finance; sovereign debt management; monetary, fiscal and exchange rate policies; structural adjustment; and regional economic integration.

The presentation was attended by her Excellency, Mrs U. C. Dwarka-Canabady, Ambassador and Acting Secretary for Foreign Affairs, members of the FSC Board and players in the financial industry i.e. representatives of Global Business, Capital Markets, Insurance and Pension sectors.

Ms Clairette Ah-Hen, Chief Executive of the FSC, in her opening address pointed out that “Regulation, culture, risk and profitability are all important in determining the future of the financial services industry. The future is promising but uncertain. Following the crisis, there are increased demands and expectations on regulators from the public and policy makers. The pressure on asset managers, banks and insurers is now the new normal. New thinking in financial services needs all stakeholders/experts from the sector to work together to share ideas and experiences. Collaboration is key.”

In his opening remark, Dr. Mistry highlighted that the presentation of the roadmap aimed at enhancing the competitiveness of the Mauritius IFC and was based on the analysis of the outcomes and issues discussed at an FSC workshop with stakeholders held in October 2012 in Mauritius. The FSC workshop held in October 2012 saw the participation of key public sector officials and representatives of various segments of the financial services sector. The purpose was to initiate the process of defining a new vision and strategy for the Mauritius IFC, taking into consideration the experience of other countries and building on the existing foundation. This initiative was part of FSC’s mandate “to study new avenues for development in the financial services sector, to respond to new challenges and to take full advantage of new opportunities for achieving economic sustainability and job creation (Financial Services Act 2007 Section 5(1) (d))”.

The presentation of the roadmap to build Mauritius as a competitive IFC underlined potential challenges and proposed the following recommendations:

• Private Banking & Wealth Management (PBWM)
• Asset Management
• Insurance & Re-Insurance
• Transfer Pricing & Tax Management – Constraints/Opportunities
• Capital Market Deepening & Development (for use by Outsiders)
•  i.e. Debt, Derivatives, Currencies, Commodities, Africa, ETFs
• Complex Financial Engineering: Domestic, Regional, Africa
•  Mergers & Acquisitions (M&A)
•  Privatizations/Divestitures of SOEs
•  Public Private Partnerships (PPPs) for Infrastructure

According to Dr. Mistry, “one of the stronger aspects of Mauritius in terms of its International Financial Centre is its regulation which is actually quite good. It is quite flexible, it has got the right balance between being too heavy handed and too light handed. At the same time, it divides reasonably specific and reasonably firm guidance to what firms can and cannot do. The two regulators of the financial services sector, namely the FSC and the Bank of Mauritius (BoM), are very well respected and recognized… In fact, I believe that the regulators could offer a regulatory advisory service which will be welcomed by many international takers especially in Africa.”

In her closing remarks, the Chief Executive of the FSC invited all stakeholders to inform the FSC of their interest to form part of the various working groups being set up to look into the recommendations made in Dr. Mistry’s report by 24 January 2014. She further assured of the FSC’s support to the working groups.

Manhattan U.S. Attorney Announces Forfeiture Of $28 Million Worth Of Bitcoins Belonging To Silk Road

Preet Bharara, the United States Attorney for the Southern District of New York, today announced the forfeiture of approximately 29,655 Bitcoins (which, at today’s Bitcoin exchange rate, are worth approximately $28 million) that were seized from the Silk Road server, as well as the forfeiture of the Silk Road hidden website. The Silk Road hidden website and the Bitcoins that were forfeited yesterday had been seized in connection with the civil forfeiture action previously filed in Manhattan federal court on September 30, 2013, seeking the forfeiture of all assets of Silk Road, including its website and all of its Bitcoins because those assets allegedly were used to facilitate money laundering and constitute property involved in money laundering. In addition to the civil action, a criminal Complaint against Ross William Ulbricht, a/k/a “Dread Pirate Roberts,” a/k/a “DPR,” a/k/a “Silk Road,” the alleged owner and operator of the Silk Road hidden website, was filed in September 2013 in Manhattan federal court charging him with one count of narcotics conspiracy, one of count of conspiracy to commit computer hacking, and one count of money laundering conspiracy. The forfeiture order was signed yesterday by United States District Judge J. Paul Oetken.

Manhattan U.S. Attorney Preet Bharara said: “With today’s forfeiture of $28 million worth of Bitcoins from the Silk Road website, a global cyber business designed to broker criminal transactions, we continue our efforts to take the profit out of crime and signal to those who would turn to the dark web for illicit activity that they have chosen the wrong path. These Bitcoins were forfeited not because they are Bitcoins, but because they were, as the court found, the proceeds of crimes.”

The Silk Road hidden website was designed to enable its users to buy and sell illegal drugs and other unlawful goods and services anonymously and beyond the reach of law enforcement. In connection with the civil forfeiture action, and in addition to the Bitcoins that were forfeited yesterday, the Government seized an additional 144,336 Bitcoins (which, at today’s Bitcoin exchange rate, are worth over $130 million) that were found on computer hardware belonging to Ulbricht. Ulbricht has filed a claim in the civil forfeiture action, asserting that he is the owner of the Bitcoins found on his computer hardware, and contesting the forfeiture of those Bitcoins.

U.S. v. Silk Road Partial Default Judgment and Order of Forfeiture (PDF)

One third of Chinese companies listed in London have done so through Jersey

Jersey Finance attended the China Business Conference in London to emphasise the importance of Jersey to enable investment by Chinese companies into the UK.

Before 2008, 25 per cent of Chinese companies listed on AIM were incorporated in Jersey, with the number now having risen to around one third. With the ability to trade shares directly through CREST and also as an approved jurisdiction for listing on the Hong Kong Stock Exchange, Jersey is one of the leading international finance centres used for listings.

The conference, organised by the China-Britain Business Council, was attended by more than 500 delegates. The event focused on the impact on the rapid transformation of both the Chinese and global economies and the significant opportunities created for British companies as a result.

With China at the beginning of a huge level of outward investment, Jersey is well placed to forge long-term relationships with Chinese companies to help them navigate a less familiar stakeholder and regulatory landscape in the UK.

Geoff Cook, Chief Executive of Jersey Finance, said: “With the largest number of FTSE 100 companies registered outside the UK, Jersey is one of the most efficient ways for Chinese companies to invest in the United Kingdom.

“A recent study by Capital Economics found that Jersey channels £118 billion of investment into the UK every year, and with our efforts to increase our ties with China I can only see this increasing in the coming years.”

Intercontinental Trust is First Fund Administrator in Mauritius to Go Live with eFront

eFront, a leading software provider of financial solutions for managing alternative investments, is pleased to announce that its first implementation in Mauritius has gone live. The firm in question is Intercontinental Trust Ltd. (ITL), a leading Fund Administrator. Founded in 1999, ITL offers a wide range of financial and fiduciary services to global businesses. Today, the assets of the companies under ITL’s administration exceed $66 billion.

ITL sought to put the administration of all its private equity (PE) funds under one solution, from the maintenance of statutory records to the release of financial statements. The firm also needed a solution that would support its strategy of continued expansion into PE investing, especially in Africa. After an in-depth comparison of providers, eFront was chosen due to its fully automated and customizable solutions.

The implementation, which was tailored to accommodate PE fund requirements specific to Mauritius, will enable ITL to service clients more efficiently, and help the firm meet rigorous international standards. Capital call notices, distribution notices, as well as the preparation of quarterly and annual accounts will be automated, ensuring consistency and quicker data processing.

“eFront, considered to be a leading service provider of solutions for PE funds, meets our requirements as a fund administrator. Its solution complements our strategy to further expand into the PE industry,” commented Yan Ng, Executive Director in charge of fund operations at ITL. “We are proud to be the first fund administrator in Mauritius to successfully implement eFront’s solution.”

The island nation of Mauritius has become a center of international PE administration in recent years, largely due to government efforts to make it an inviting and profitable location. Mauritius offers investors and businesses attractive corporate and income tax rates, as well as a highly educated multicultural and multilingual population. In the World Bank's "Doing Business Survey 2014" report, Mauritius scores 20th in the Ease of Doing Business Index out of 189 countries surveyed and ranks 1st in the Africa region.

“ITL is the first of several new eFront implementations in Mauritius to go live,” said Tarek Chouman, COO of eFront Asia & Middle East. “This confirms our commitment to serve alternative investment firms the world over, and to offer a flexible, scalable, and powerful solution for global fund management.”

Mauritius: FSC issues the draft Insurance (Insurance Salespersons) Rules for consultation

In line with its policy to enhance the transparency of its rule-making process, the Financial Services Commission („FSC‟) is issuing the proposed Insurance (Insurance Salespersons) Rules (the “draft Rules”) for consultation and invites the views of stakeholders and the public in general thereon. The draft Rules are available at the following hyperlink: Insurance (Insurance Salespersons) Rules

Mauritius: FSC issues the draft Insurance (Insurance Agents) Rules for consultation

In line with its policy to enhance the transparency of its rule-making process, the Financial Services Commission ("FSC") is issuing the proposed Insurance (Insurance Agents) Rules (the "draft Rules") for consultation and invites the views of stakeholders and the public in general thereon. The draft Rules are available at the following hyperlink: Insurance (Insurance Agents) Rules