28 February 2015

Dietary quality among men and women in 187 countries in 1990 and 2010: a systematic assessment

The work by Fumiaki Imamura and colleagues in The Lancet Global Health [Volume 3, No. 3, e132–e142, March 2015] is a unique attempt to evaluate measures of dietary quality and their trends in most countries worldwide. They used a wide range of data sources, including nationally representative dietary surveys, local surveys, and foods disappearance data—ie, UN Food and Agriculture balance sheets. They also adjusted for total energy intake to evaluate quality—as far as possible—independently from quantity.

27 February 2015

IFC Review - Due Diligence: M&A Sans Investment Bankers

Burke Files examines the diminishing role of the Investment Banker in the M&A arena

IFC Review - Liechtenstein: Ensuring a Robust & Competitive IFC

Roger Frick considers the steps taken by Liechtenstein to ensure it remains a robust and competitive international financial centre

IFC Review: A Modern Arbitration Framework for the British Virgin Islands

Alistair Abbott considers how the new Arbitration Act is a welcome update to the BVI's position on arbitration

IFC Review: Transparency and Directors Registration in the Cayman Islands

Matt Mulry considers the significant steps taken to increase transparency and investor protection in the Cayman Islands funds sector

IFC Review - The BVI: The Premier Corporate Domicile

Well regarded as a compliant and transparent jurisdiction, BVI Finance provide an overview of the jurisdiction's financial services

IMF - Managing Capital Flows: Lessons from Emerging Markets for Frontier Economies

Private capital flows to Frontier Markets (FMs) have increased substantially over the last decade, and are projected to rise further in the coming years. While still dwarfed in absolute size compared to flows to Emerging Markets (EMs), in relation to the economic size of the recipient country, flows to FMs are now often on par with those to EMs. In general, such flows, and capital mobility more broadly, provide much needed financing for productive investments, contribute to financial market development, and are largely welcome in FMs, but they also entail macroeconomic and financial-stability risks—which are amplified by the magnitude and volatility of flows. As FMs continue to attract flows, develop their financial markets, and rise to join the ranks of EMs, what are the challenges they confront? And can they learn from the experience of EMs to effectively manage the risks associated with large capital flows?

This high-level conference will provide a forum for policy makers from frontier and emerging markets to share their experiences in managing capital flows, learn from each other, and together with academics and market participants, engage in discussions about policy options for mitigating the risks associated with capital flows, while reaping the benefits of financial integration.

High-level conference
The Westin Turtle Bay Resort & Spa Mauritius
Mauritius, March 2, 2015



Monday, March 2

8:00–9:00

Registration and Coffee

9:00–9:30

Welcome and Opening Remarks

Seetanah Lutchmeenaraidoo, Minister of Finance and Economic Development, Mauritius
David Lipton, First Deputy Managing Director, IMF
9:30-10:15

Keynote Speech

Dani Rodrik, Professor, Institute for Advanced Study
10:15–10:45

Coffee

10:45–12:15

Session I—Trends, Dynamics, and Challenges of Capital Flows to Frontier Markets

This session will discuss the recent trends and behavior of capital flows to frontier markets, and the challenges posed by such flows. What are the factors driving capital flows to frontier markets—is the rise in private flows a structural phenomenon that defines a “new normal” or is it largely driven by lax monetary policy conditions in advanced countries, inducing investors to take on riskier bets? What are the main types of flows to frontier markets? Do they pose any risks and challenges? Are frontier markets likely to experience as much capital flow volatility as emerging markets? How does experience differ according to country characteristics?
Chair:
Ramesh Basant Roi, Governor, Central Bank of Mauritius
Speakers:
Allah Malik Kazemi, Advisor to Governor; Former Deputy Governor, Central Bank of Bangladesh
Louis Kasekende, Deputy Governor, Bank of Uganda
Henry Rotich, Cabinet Secretary, The National Treasury, Kenya
Daniel Zelikow, Managing Director, Global Head, Public Sector Group, JP Morgan
12:15–13:30

Lunch

13:30–15:00

Session II—Policy Responses to Capital Inflows

This session will discuss the policy tools deployed by frontier and emerging markets to manage the challenges posed by capital inflows: macroeconomic policies; macroprudential policy; and capital controls. How effective are the various tools? What can be said about the policy hierarchy among these various tools? Should countries intervene in foreign exchange markets to mitigate exchange rate volatility associated with capital flow volatility?
Chair:
Jonathan D. Ostry, Deputy Director, Research Department, IMF
Speakers:
José De Gregorio, Professor, Universidad de Chile; Former Governor, Central Bank of Chile
Olivier Jeanne, Professor, Johns Hopkins University
Millison Narh, Deputy Governor, Bank of Ghana
15:00–15:30

Coffee

15:30–17:15

Panel Discussion—Managing Capital Flows in Frontier and Emerging Markets: What are the Lessons?


Moderator:
Richard Davies, Economics Editor, The Economist
Speakers:
Godwin Emefiele, Governor, Central Bank of Nigeria
Subir Gokarn, Director Research, Brookings India; Former Deputy Governor, Reserve Bank of India
Tukiya Kankasa-Mabula, Deputy Governor, Bank of Zambia
Brian Kahn, Advisor to Governor, Reserve Bank of South Africa
17:15–17:30

Concluding Remarks

Antoinette Sayeh, Director, African Department, IMF
19:00

Reception and Dinner

Ile Maurice / Mauritius - Château de Bel Ombre: Goût de / Good France - 19 Mars / March 2015

La première édition du projet « Goût de France » aura lieu le 19 mars sur 5 continents et verra la participation de plus de 1000 chefs. Cet événement international, sous la forme d’un dîner, a pour but de rendre hommage à la gastronomie française, à sa capacité d’innovation et aux valeurs qu’elle véhicule. Le coup d’envoi de Goût de France sera aussi un clin d’œil à l’inscription du « repas gastronomique des Français » sur la liste du patrimoine immatériel de l’UNESCO.

Sélectionné par un comité présidé par Alain Ducasse, le Chef Ravi Kanhye du Château de Bel Ombre aura le plaisir de présenter une cuisine fine et créative aux inspirations françaises et mauriciennes lors de cette soirée exceptionnelle. Au menu, cuisse de canard en rillettes, bisque de langouste, filet de saumon, tournedos de bœuf Rossini, assiette de fromages et mille-feuille au chocolat. Le public est invité à déguster ce menu à Rs.3,500 par personne, dont un pourcentage sera reversé à l’association Caritas.

The first edition of « Goût de France » / Good France will take place on the 19th March 2015 on five continents with the participation of more than 1000 kitchen chefs. This international dinner event aims at paying a tribute to the French gastronomy, its innovating capacity and values. This gastronomic experience will also be a reference to the inscription of the “gastronomic meal of the French” on the list of the Intangible Cultural Heritage of Humanity.

The Chef Ravi Kanhye from Chateau Bel Ombre, who has been selected by a committee presided by Alain Ducasse, will honour the guests with a refined and creative cuisine combining French and Mauritian cuisine on that special evening. On the menu, duck leg rillettes, lobster bisque, salmon fillet, beef tournedos Rossini, cheese plate and chocolate millefeuille. Members of the public are invited to enjoy this menu at Rs.3,500 per person, out of which a percentage will be donated to the association Caritas.

Aperitif

Champagne and gougère

Cold Starter

Duck leg rillettes, Seared duck breasts and crunchy asparagus salad.

Hot Starter

Lobster bisque with caviar mousse

Fish 

Salmon fillet seared with black salt, accompanied by champagne sauce and vegetables à la truffe

Meat

Beef Tournedos Rossini with its Madeira sauce

Cheese platter 

Farm Reblochon , Tomme de Savoie and Vieux comté

Dessert 

Chocolate mille-feuille

Institutional Investor: Banks of Tax Haven Mauritius Pursue Wealth Management

A major source of foreign direct investment in India, the island nation is now looking to serve ultrarich African clients.

Mauritian banks have pushed to diversify in recent years, with services for the wealthy residents of developing nations at the top of the list. The move to embrace private banking comes as these firms turn west to Africa in an effort to become less reliant on Indian clients.

Ile Maurice / Mauritius - Château Mon Désir: Goût de / Good France - 19 Mars / March 2015

Evénement culinaire au Château Mon Désir le jeudi 19 mars 2015 qui aura lieu simultanément dans 150 pays et 1300 restaurants de part le monde.

Le Château Mon Désir a en effet eu l 'honneur d’être sélectionné pour représenter la gastronomie française à l’Ile Maurice par un comité de chefs internationaux présidé par Alain Ducasse, pour participer à l'opération ‘Goût de France / Good France’ qui se déroulera le 19 mars prochain 

Lors de cet événement qui célébrera à la fois Ia gastronomie française, reconnue au patrimoine de l'UNESCO, et le savoir-faire mauricien, un menu 'Dégustation' traditionnel français vous sera proposé. Celui-ci mettra à l’honneur des classiques de la cuisine française comme la célèbre Soupe ‘Valérie Giscard d’Estaing’ de Paul Bocuse! 

Le Menu 'Dégustation'

Apéritif

Coupe de Champagne servie avec un gougère au fromage

Entrée Froide

Carpaccio de coquilles St Jacques marinées avec une vinaigrette à l’huile d'olive AOC de Menton parfumée avec son jus de coriandre et citron, croquettes de saumon et son caviar de poisson.

Entrée Chaude

Crème de Polenta à la truffe d’hiver servie avec son oeuf de caille frit parsemé de dés de foie gras

Soupe

Soupe ‘Valérie Giscard d’Estaing’ de Paul Bocuse

Premier Plat

Bar de la Méditerranée flambé au fenouil servi avec une ratatouille provençale accompagné de sa cassolette de moules marinière

Deuxième Plat

Tournedos de filet de boeuf ‘Rossini’ servi avec pommes de terre façon Venassienne, endives caramélisées et ses jeunes carottes fondantes, sauce Pommerol

Assortiments de Fromages

Assortiment de 5 sortes de fromage français affinés par un maître fromager servis avec des tranches de pain aux fruits confits

Dessert

Soufflé au chocolat ‘Callebaut’ servi avec sa crème glacée à la vanille faite maison

Café et thé avec une sélection de mignardises

Alain Ducasse : Goût de / Good France - 19 Mars / March 2015

19 mars 2015 - Une grande fête de la cuisine à travers le monde

« 1000 chefs sont réunis pour réaliser le même jour un diner français unique. Au-delà de célébrer la cuisine française, Goût de / Good France rend hommage à la cuisine d’aujourd’hui qui est vivante, diverse, en phase avec son époque et humaniste. Tous ces chefs partagent les mêmes valeurs : plaisir, générosité, défense du bien-manger, respect de la planète ». Alain Ducasse


Goût de / Good France est un événement qui aura lieu le 19 mars prochain, organisé par le Ministère des affaires étrangères et du développement international français, à l’initiative d’Alain Ducasse.

S’inspirant d’Auguste Escoffier qui initiait en 1912 les Diners d’Epicure (le même menu, le même jour, dans plusieurs villes du monde et pour le plus grand nombre de convives), Goût de / Good France reprend cette belle idée dans le but de réunir des chefs aux quatre coins de la planète le temps d’un diner.

Les 1000 chefs participants conçoivent pour leur établissement un menu « à la française » avec un cadre commun - un apéritif de tradition française, une entrée froide, une entrée chaude, un poisson ou un crustacé, une viande ou une volaille, un fromage français (ou une sélection), un dessert au chocolat, des vins et un digestif français - tout en restant libres de mettre en valeur leur propre tradition/culture culinaire. Ce soir-là, seul le menu Goût de / Good France sera proposé par les restaurants participants à leurs clients associés à cette grande fête de la cuisine.

Goût de / Good France défend une cuisine accessible à tous, exprimant une belle diversité, du bistrot au restaurant gastronomique, et réalisée à partir de produits frais, de saison et issus du terroir local, et avec moins de graisses, de sucres, de sel et de protéines. Une cuisine axée sur le plaisir et la générosité, respectueuse de la planète et de la santé de ses contemporains.

Chaque restaurant est encouragé à reverser 5% des ventes du menu Goût de / Good France à l’ONG locale de son choix œuvrant pour le respect de la santé ou de l’environnement.

Goût de / Good France est une véritable invitation au voyage que la France adresse au monde, et que les restaurants d’Alain Ducasse adressent aux clients qui souhaitent participer à cet événement unique.

March 19th 2015 - A worldwide culinary celebration

On the same day, 1000 chefs around the globe will create a unique French dinner. Beyond a celebration of French cuisine, Goût de / Good France pays respect to today’s cuisine: humanist, energetic, diverse, and relevant. Contributing Goût de / Good France chefs all share the same values: sharing, enjoying, and respecting good food and the planet.” Alain Ducasse



Organized by Alain Ducasse and France’s Ministry of Foreign Affairs and International Development, Goût de / Good France will be observed on March 19th.

Inspired by Auguste Escoffier, who started The Epicurean Dinners - the same menu, the same day, in several world cities, and aimed at as many diners as possible - in 1912, Goût de / Good France reproduces this beautiful idea with a desire to involve chefs from around the world, in this special event.

Each chef will create a French-themed menu, which includes a French apéritif, a cold starter, a hot starter, a fish or shellfish, meat or poultry, a French cheese (or cheeseboard), a chocolate dessert, French wine and digestif, and priced at the restaurant’s discretion. While the menus will be reflective of French gastronomy, the dishes will not be strictly traditional: participating chefs will integrate their own culinary culture and style from haute cuisine to bistro fare. On the night of March 19th, only the Goût de / Good France menu will be proposed to clients at restaurants participating in this great culinary event.

Goût de / Good France defends a cuisine accessible to all, based on the freshest seasonal ingredients available, highlighting the value of healthy eating by emphasizing the use of vegetables, with minimal fat, sugar and salt content. Each menu will honor the merits of French cuisine, its capacity for innovation, and its values: sharing, enjoying, and respectful of the planet and its inhabitants.

Participating restaurants are encouraged to donate 5% of Goût de / Good France menu proceeds to a local NGO promoting health and the environment.

Goût de / Good France invites the world on an unforgettable journey, which Alain Ducasse restaurants wish to extend to their guests.

Bloomberg: Why the World Is So Bad at Tracking Dirty Money

Global regulations on money laundering are expensive to enforce and unfair to poor countries. They don't work very well, either

Mauritius, a small, middle-income country of just 1.3 million people, has 25 government officials working on FATF implementation. That’s more people than are listed as opticians in the country. Each bank in Mauritius will also have staff tasked with carrying out customer investigations.

26 February 2015

Egmont Cases - Financial Analysis Cases 2011-2013

This publication comprises of twenty two cases which have been included to provide examples of a financial investigation and the analytical processes demonstrated by the various FIUs in their work.

A key objective of this publication is to produce a valuable reference for FIUs, enabling the financial crime prevention community the opportunity to share and learn from experience. The following cases show how investigations were initiated and progressed through to successful money laundering cases. They demonstrate how FIUs developed their investigation from available information to produce an intelligence product and valuable evidence to support a prosecution.

The topics covered by the case studies are:
  1. Corruption, Money Laundering, and Terrorist Resourcing in the Middle East;
  2. Money Laundering, Corruption, and the importance of international exchange;
  3. Corruption in the Civil Service;
  4. Multiple Heroin importation syndicates dismantled;
  5. Afghan Heroin;
  6. The illegal supply of drugs into Nusakambangan Prison;
  7. Efraim Diveroli/AEY Investigation – The supply of banned arms;
  8. Structuring in an effort to avoid tax;
  9. Operation Arboria – A Ponzi Scheme;
  10. Money Laundering and Conspiracy to Defraud – A Ponzi Scheme;
  11. The Fiji Turtle Island Resort Case: Forgery, Fraud, Money Laundering, and Non-Conviction Based Forfeiture;
  12. Money Laundering by Fraudulent Western Union Agents;
  13. The misappropriation of municipal funds;
  14. Laundering the proceeds of illegal pornographic material;
  15. Human Trafficking - Modern day slavery;
  16. El Loco Barrera - Colombian Narcotrafficker;
  17. AUSTRAC information sparked investigation into illegal Money Remitter;
  18. Use of Foreign Bank to conceal source of funds;
  19. Operation Hammer;
  20. The use of shell companies and ‘Round-Robin’ type schemes to evade tax;
  21. Using legitimate businesses and NPOs to finance terrorism;
  22. Disrupting the financial and material resources of terrorism through civil forfeiture.
Download

Hong Kong and Singapore plot divergent fiscal paths

Hong Kong and Singapore have revealed differing plans for how to combat rising prices, ageing populations and slowing global growth, setting Asia’s financial centre rivals on divergent economic paths.

25 February 2015

Stable 2014 for Jersey’s finance industry as funds industry reaches record levels

The latest figures for all sectors of Jersey’s finance industry reflect an overall good performance, with the funds sector once again leading the way and recording its fourth consecutive quarter of growth to reach its highest level in seven years.

The statistics highlight that the net asset value of regulated funds increased by £23.5 billion in the final quarter of 2014, and by around 19% year-on-year, to reach £228.9 billion, the highest figure since December 2008. This was led by another strong performance in the alternative asset classes, with the value of hedge fund business growing by 46% year-on-year, real estate business growing by 32% to its highest ever level, and private equity maintaining a steady increase of 5% in the same period.

Although bank deposits fell slightly they remain stable, whilst now almost 19% of deposits emanate from the Middle and Far East combined. The company formation rate for the final quarter of 2014 was at its highest since June 2008 with 772 company formations.

The latest statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending 31st December 2014. Headline figures include:

  • The total value of banking deposits held in Jersey decreased by £4.2bn from £136.6bn to £132.4bn during the fourth quarter of 2014 representing an annual decrease of just over 5%.
  • The net asset value of regulated funds under administration increased by £23.5bn from £205.4bn to £228.9bn during Q4 2014, a year-on-year increase of 19%.
  • The total number of regulated collective investment funds increased by 19 from 1,304 to 1,323 over the quarterly period, whilst as at end of the fourth quarter of 2014, there were 123 active unregulated funds (of the 208 unregulated funds notified to the Commission).
  • The value of total funds under investment management decreased slightly by £0.5bn from £21.3bn to £20.8bn during the fourth quarter of 2014.
  • The total number of live companies on the register stood at 32,717 at the end of Q4 2014, while there were 722 company formations in the final quarter of the year, the highest number since June 2008. 

Geoff Cook, Chief Executive, Jersey Finance, commented:

The latest figures for all sectors of Jersey’s finance industry reflect an overall good performance, with the funds sector leading the way and recording its fourth consecutive quarter of growth to reach its highest level in seven years. Bank deposits fell slightly but remain stable and almost 19% of deposits now emanate from the Middle East and the Far East combined.

The figures for our funds industry make impressive reading. Not only has the value of funds business reached its highest level since 2008, the sizeable annual increase of almost 20% is particularly pleasing in a global fundraising environment that is still challenging.

The total value of funds under investment management decreased slightly by £0.5bn from £21.3bn to £20.8bn during Q4 and the company formation rate for the final quarter of 2014 was at its highest since June 2008 with 772 company formations.’’

UK: Anti-money laundering taskforce unveiled

The Home Secretary, the Governor of the Bank of England and the Chairman of the Financial Conduct Authority (FCA) co-chaired the second Serious and Organised Crime Business Breakfast this morning. It was organised to take stock of progress since an inaugural meeting to foster greater collaboration between finance and law enforcement was held in April 2014.

Creating a hostile environment for criminals

The first Breakfast led to the establishment of the Financial Sector Forum, which meets three times a year to identify practical opportunities to make the UK’s financial sector a more hostile environment for criminal activity, build international cooperation and help to recover the proceeds of crime more quickly and effectively.

A key achievement of the Forum is the Joint Money Laundering Intelligence Taskforce (JMLIT), a new 12-month pilot project developed by the Home Office, National Crime Agency (NCA), City of London Police, British Bankers’ Association (BBA) and other financial institutions. Its aim is to improve intelligence sharing arrangements to aid the fight against money laundering and build upon the national leadership against organised economic and financial crime provided by the Economic Crime Command in the NCA.

Delegates at the Breakfast, including NCA Director General Keith Bristow and Anthony Browne, chief executive of the BBA, also explored how to develop and further strengthen the relationship between public and private sector bodies. Discussions focused on tackling terrorist financing and information sharing around cyber crime.

And the Home Office fulfilled a commitment of the UK Anti-Corruption Plan by launching a Call for Information to support its review of the regime through which suspicious activity is reported by financial institutions. Key partners have the opportunity to contribute their views on how the regime could be improved.

An active partnership with industry

Home Secretary Theresa May said:

The scale and complexity of serious and organised crime, including financial crime such as money laundering, requires more than just a law enforcement response. It requires active partnership between government and industry.

Working alongside the Bank of England, the Financial Conduct Authority, law enforcement agencies and the banks, the Financial Sector Forum has helped to collectively understand the threat posed by such criminality, disrupt the activities of those behind it, and protect our institutions from the damage it can cause.

The launch of the Joint Money Laundering Intelligence Taskforce today marks the next stage in this relationship and demonstrates the progress that we have made. It also shows real leadership and commitment from the banks.

But we cannot stop there. That is why we are meeting again to discuss how we can step up our efforts and make the UK the world’s most hostile environment for money launderers.

Anthony Browne, chief executive of the BBA, said:

When banks, the government and law enforcement work together we are undoubtedly stronger in our efforts to combat crime. That’s why we are playing a leading role in sharing key intelligence to help protect our customers from fraud and catch sophisticated criminals.

The BBA will ensure that this information is shared directly with the full range of banks in the UK via our new Financial Crime Alerts Service which launches in April.

Ultimately this will help us to make sure that London has one of the toughest regimes of any financial centre in the world.

NCA Director General Keith Bristow said:

This is about shared endeavour in the space where the responsibilities of law enforcement, government and the financial sector overlap.

The only people who benefit from gaps in money laundering intelligence are the criminals who want to exploit the UK’s financial systems for their own profit at the expense of the public.

None of us wants them to be able to do that. We still have some way to go, but this is a really positive start.

City of London Police Commander Steve Head, the Police National Coordinator for Economic Crime, said:

Serious and organised crime costs the UK an estimated £24 billion each year, with a significant proportion of this money being moved through and then out of our banking system, to be either spent or used to fund other criminal activities.

The Joint Money Laundering Intelligence Taskforce (JMLIT) has been set-up to improve the way we are sharing information across our financial sector and with law enforcement and government. This in turn will give us a better understanding of how the banking system is being exploited, enabling us to choke off the flow of illegal funds that are the life-blood of these highly dangerous and destructive criminal enterprises and ensure the financial sector is better protected, which is good news for us and bad news for those operating on the wrong side of the law.

The City of London Police is proud to be a part of the alliance that established the JMLIT and is now looking forward to hosting the Taskforce with the Corporation of London and working with partners to drive forward this work targeting serious and organised criminal networks.

Sharing information to beat the money launderers

Organised crime is a significant threat to UK national security. It costs the UK at least £24 billion each year and impacts our economy and our growth. Money laundering is a key enabler of organised crime – it risks damaging the integrity and stability of financial markets and institutions, undermines consumer confidence and threatens the reputation of businesses and the City.

The JMLIT has been developed to provide an environment in which the financial sector and law enforcement agencies can exchange and analyse information and intelligence to detect, prevent and disrupt money laundering and wider economic crime threats against the UK. It will run for an initial period of 12 months.

Representatives from the financial sector, NCA and City of London Police will be based in a single hub to develop an operational level understanding of money laundering risks. The banks involved are: Lloyds, Santander, HSBC, Nationwide, Post Office, RBS, Barclays, Citigroup, BNP Paribas and Standard Chartered.

This operational hub will be supported by a strategic group focused on building a common threat picture of how criminals operate. Banks will only be allowed to share information if it is for the prevention and detection of crime.

Information and intelligence will be processed and disseminated via the BBA’s Financial Crime Alerts Service. Other law enforcement agencies and financial institutions involved include HMRC, Financial Fraud Action UK and Cifas.

Mauritius: Government to relentlessly fight fraud, corruption and financial crime, says PM

The Minister of Financial Services, Good Governance and Institutional Reforms and the Attorney General are currently on mission in London for discussions with the following institutions: Serious Fraud Office; Foreign and Commonwealth Office; Financial Conduct Authority; and National Crime Agency regarding assistance in the setting up of the Financial Crime Commission.

This statement was made yesterday in the National Assembly by the Prime Minister, Sir Anerood Jugnauth, while replying to the private notice question pertaining to legislation to set-up a Financial Crime Commission and a revised and enhanced Independent Commission against Corruption model.

The Prime Minister stated that as per the Government Programme 2015-2019, Government has a mandate for change and will relentlessly fight fraud, corruption and financial crime.  To that effect, a Financial Crime Commission will be set up to act as an apex body to oversee the ICAC, the Financial Intelligence Unit and the enforcement department of the Financial Services Commission.

Sir Anerood Jugnauth further underlined that Government will leave no stone unturned to eradicate fraud, corruption, malpractices and irregularities in all aspects of public life and restore our national values.  To this end, a new Declaration of Assets Act for MPs and high ranking public officers and a Financing of Political Parties Act will be enacted.  A new Code of Conduct will be introduced for all MPs and public officers.

The Prime Minister highlighted that Financial Crime Commission will be set up as an umbrella organisation to oversee the operations of a revised and enhanced ICAC model, the FIU and Asset Recovery Unit, the enforcement units of the Financial Services Commission and the Financial Reporting Council relating to securities, insurance and financial reporting fraud within a newly set up Anti Fraud Unit. 

He added that this will bring harmonisation in the structure for fight against financial crime in Mauritius and will ensure better coordination amongst existing institutions.  It will also mitigate the risks of fraudsters exploiting loopholes in the functioning of institutions which may have led to the recent cases of Ponzi schemes where many innocent but gullible persons have lost their hard earned money.

The Prime Minister said that as an immediate measure, pending the setting up of the Financial Crime Commission, an amendment will be brought to the Asset Recovery Act and the Asset Recovery Unit will be merged with the Financial Intelligence Unit.

Spy Cables: Israeli cable reveals South Africa missile theft cover-up

24 February 2015

Strong uptake in private placement as Jersey funds industry reaches seven year high

A strong performance in Jersey’s funds sector in 2014 has seen the value of fund assets administered in the jurisdiction increase by almost one fifth year-on-year to reach the highest level in seven years.

The latest figures for Jersey’s finance industry, collated by the Jersey Financial Services Commission (JFSC) for the period ending December 2014, show that the net asset value (NAV) of funds under administration in Jersey grew by £23.5bn over the final quarter of last year to now stand at £228.9bn, representing an increase of 19% compared to December 2013 and the highest level since December 2008. In addition, the total number of regulated funds rose by 19 during the quarter.

This was led by another strong performance in the alternative asset classes, which account for 72% of the total NAV, with the value of hedge fund business growing by 46% year-on-year, real estate business growing by 32% to its highest ever level, and private equity maintaining a steady increase of 5% in the same period.

Meanwhile, six months after the implementation phase for the Alternative Investment Fund Managers Directive (AIFMD) ended, Jersey’s private placement route into Europe continues to grow in popularity amongst fund managers. Figures from the JFSC show that 60 alternative investment fund managers (AIFMs) have received authorisation under Jersey’s AIFMD private placement regime, whilst 186 Jersey alternative investment funds (AIFs) are being marketed into Europe through private placement regime. In addition, 14 AIF depositary notifications have now been received under AIFMD from five different Jersey AIF depositary service providers.

 Geoff Cook, Chief Executive, Jersey Finance, commented:

The 2014 figures for Jersey’s funds industry make impressive reading. Not only has the value of funds business reached its highest level since 2008, but the sizeable annual increase of almost 20% is particularly pleasing in a global fundraising environment that is still relatively challenging. This growth is symptomatic of the confidence alternative funds professionals have in Jersey and why a number of major alternative fund houses have made the move to establish or expand their presence in the jurisdiction recently.

Ben Robins, Chairman, Jersey Funds Association, added:

"The fact that there has been a strong upward trend across the core private equity, real estate and hedge fund asset classes as well as the debt and infrastructure fund spaces in the six months since AIFMD was implemented is clearly pleasing. The number of Jersey domiciled managers receiving authorisation to privately place and the number of funds being marketed into Europe through private placement under AIFMD is on the rise, and this goes to show that managers clearly like the flexibility and robust nature of Jersey’s regulatory framework.

The warm reception afforded to private placement under AIFMD and trends within the European fund structuring arena, including ESMA’s recent call to evidence, will feature on the agenda at Jersey Finance’s Annual London Funds Conference, entitled ‘Winning Moves’, on 19th March. The event will also feature discussions on the global regulatory landscape and trends in real estate and infrastructure investment fund structuring from the US, Middle East and Asian investors.

BLC Chambers: Guidelines on 'solicitation' in force

Soliciting persons in Mauritius or from within Mauritius is a regulated activity, which is subject to high level of scrutiny by the Mauritius Financial Services Commission (FSC). Recently, the FSC has published Guidelines for Advertising and Marketing of Financial Products (Guidelines). The Guidelines regulate the advertising and promotion methods which licensed entities generally use to market financial products. They apply to all licensed intermediaries offering securities and other financial products in or from Mauritius, including via the global business sector. The Guidelines entered into force on 1st January 2015.

Prior to the issue of the Guidelines, Mauritius laws provided a general ban on ‘soliciting’ another person to enter into a transaction involving securities, but did not go as far as specifying the various forms of communication which could amount to ‘solicitation’. The Guidelines clarify both written and non-written forms of communication including internet advertisements, cold calls amongst others which would fall foul to the prohibition. In addition, the Guidelines regulate the content of advertisements in terms of specific disclosures or disclaimer requirements and inclusion of some specific data such as information regarding past or projected performance, rankings or awards received by the promoter. Marketing materials remain under the scrutiny of the FSC and for this purpose, a finalised copy must be submitted to the FSC prior to marketing to targeted consumers or to the public in general. Furthermore, the Guidelines have imposed some business conduct standards on promoters to act with honesty, fairness, integrity, professionalism and by preserving confidentiality of consumers.

The Guidelines also impose a duty on promoters of financial products to ensure at all times that the content of their advertising and marketing materials are compliant and in line with the Guidelines. Among the main highlights of the Guidelines is the potential exposure of the promoter of financial products to regulatory actions (for example, directions may be given by the FSC), and on conviction, liability to fines not exceeding MUR500,000 and/or imprisonment for a term not exceeding five years in the event of non-compliance with the Guidelines.

These Guidelines are helpful as they fill in some gaps in the law and bring conduct of business regulation in the capital markets a step closer to best international practices worldwide. They also aim at ensuring that promoters of financial products do not indulge in misleading or deceptive conduct in soliciting investors and ensuring that advertising follows honest, legal, decent and truthful standards.

22 February 2015

SA murder suspect in Mauritius held by 'apartheid-style' law

The detention of a Johannesburg businessman, Peter Wayne Roberts, in connection with the mysterious death of his girlfriend at a Mauritius resort has cast a spotlight on the country's bizarre legal system.

21 February 2015

FT: A relic of empire that created a tax colony

Britain has proffered a fiscal invitation to citizens of the world, writes Richard Brooks

The “men who are rich enough to leave their incomes abroad”, as Lloyd George put it generations ago, are now at the heart of the British establishment. Their special status has endured a century. It may yet endure a century more.

17 February 2015

India: Did Kingfisher money disappear in Cayman, Mauritius?

Kingfisher Airlines had leased 26 of its 64-aircraft fleet through offshore companies in tax havens like Cayman Islands and Mauritius and paid rents far above market rates, documents accessed by dna indicate.

Mauritius and World Bank put together New Country partnership Framework 2015-2020

Mauritius and the World Bank (WB) Group are putting forward the new Country Partnership Framework for Mauritius, which  outlines the operational and strategic framework of collaboration  for the period 2015-2020.

This was at the fore of discussions during a courtesy call by the World Bank Country Director for Mauritius, Mr Mark R. Lundell, on the Prime Minister, Sir Anerood Jugnauth, this morning, at the Treasury Building in Port Louis.

Discussions also focused on short and long term development strategies to meet future challenges as well as on new avenues for greater cooperation between the WB Group and Mauritius in the development of strategic and emerging sectors as spelt out in the Government Programme 2015-2019. They are namely: the Information, Communication and Technology (ICT) sector; Education; Renewable Energy and the Ocean Economy, among other areas.

In a statement Mr Mark R. Lundell reiterated the commitment of the WB to support Mauritius in its economic development path. The innovative approach enunciated in the Government programme will , he added  be the focus of the WB on how Mauritius can regain its brand as a source of innovation for its domestic  economy as well as regionally.

He stressed the need for better linkages between the development of emerging sectors such as ICT and financial services, and employment opportunities for the middle class. This, he said, will be the key criteria for the WB with regard to analysing the various economic sectors not just in its ability of being profitable and successful to Mauritius but also in terms of generating employment.
The World Bank Group has been supporting Mauritius with lending and non-lending assistance which is complemented with technical and analytical support on a variety of topics, including infrastructure, review of public expenditure, health, tourism, education, social protection and poverty, public enterprises, civil service reforms, finance, diaspora, and institutional strengthening with the government. A number of knowledge and technical assistance projects related to monitoring and assessment of poverty and inequality are in the pipeline.

Mr. Mark Lundell is the World Bank Country Director for Madagascar, Mozambique, Seychelles, and Comoros. He has joined the World Bank in the Europe and Central Asia (ECA) region in the early nineties. He has since held positions of increasing responsibility within the World Bank, including as Sector Manager, Sustainable Development, in the Beijing Office. Coming from the US Department of Agriculture, Mr. Lundell has also served as Sector Leader in the Latin America and Caribbean region.

16 February 2015

2014 Airport Service Quality (ASQ) Awards.

Airports Council International (ACI) is pleased to announce the recipients of the prestigious 2014 Airport Service Quality (ASQ) Awards. As the industry’s most comprehensive passenger service benchmarking tool, the ACI ASQ Survey has reliably captured passengers’ immediate appraisal from check-in through departure at the gate at more than 300 airports worldwide. These awards represent passengers’ views on 34 key service indicators and are an objective and accurate indicator of the top worldwide performing airports with regard to passenger service.

Airports are more than simply points of departure and arrival,” said Angela Gittens, Director General, ACI World. “They are complex businesses in their own right. As such, a focus on serving the passenger has become increasingly important to ensuring success. In the fast-changing landscape of worldwide aviation, ASQ is the key to understanding how to increase passenger satisfaction and improve business performance.

At the end of the day, good business acumen comes down to a simple equation: better service, improved traffic and a healthier bottom line,” Gittens added.

The ASQ Awards are presented in four categories: Best Airport by Region, Best Airport by Size, Best Small Airport and Best Improvement.

I see many airports on the 2014 top performers list that have made the cut year in and year out,” Gittens said. “It’s particularly satisfying to know that the benefits of the ASQ programme are long-term and far-reaching. Likewise, there are a number of new faces, effectively proving that ASQ has something to offer every airport, whether well-versed in passenger satisfaction or just beginning the journey toward customer service excellence.

The following airports represent the best in class for their respective ASQ categories:

Best Airport by Region (first place)

Mauritius (Africa), Seoul Incheon (Asia-Pacific), Keflavik (Europe), Guayaquil (Latin America-Caribbean), Amman (Middle East), Indianapolis (North America)

Best Airport by Size* (first place)

Guayaquil (2–5 million), Haikou (5–15 million), Seoul Gimpo (15–25 million), New Delhi (25–40 million), Seoul Incheon (over 40 million)

* Passengers per year

Best Small Airport* by Region (first place)

Upington (Africa), Langkawi (Asia-Pacific), Murcia (Europe), Culiacan (Latin America-Caribbean), Victoria (North America)

* Fewer than 2 million passengers per year

Best Improvement by Region (first place)

Mauritius (Africa), Kolkata (Asia-Pacific), St. Petersburg (Europe), Santo Domingo (Latin America-Caribbean), San Antonio (North America)

The top ASQ performers for 2014 are as follows:

Best Airport by Region
Africa

1. Mauritius 
2. Durban 
3. Cape Town 
4. Johannesburg 
5. Nairobi 
Asia-Pacific

1. Seoul Incheon 
2. Singapore 
3. Beijing 
4. Haikou 
5. New Delhi
Europe

1. Keflavik 
2. Moscow Sheremetyevo 
3. Porto 
4. Malta 
5. Zurich
Latin America-Caribbean

1. Guayaquil 
2. Quito 
3. Cancun 
4. Nassau 
5. Santo Domingo
Middle East

1. Amman 
2. Abu Dhabi 
3. Tel Aviv 
4. Doha 
5. Dubai
North America

1. Indianapolis 
2. Tampa 
3. Jacksonville 
4. Sacramento 
5. Ottawa

Best Airport by Region (fewer than 2 million passengers per year)
Africa

Upington 
Asia-Pacific

Langkawi
Europe

Murcia
Latin America-Caribbean

Culiacan
North America

Victoria

Best Airport by Size
2–5 million passengers

1. Guayaquil 
2. Mauritius 
3. Ottawa 
4. Nassau 
5. Ahmedabad
5–15 million passengers

1. Haikou 
2. Sanya 
3. Hyderabad 
4. Tianjin 
5. Changchun
15–25 million passengers

1. Seoul Gimpo 
2. Wuhan 
3. Hangzhou 
4. Cancun 
5. Tampa
25–40 million passengers

1. New Delhi 
2. Taipei Taoyuan 
3. Chongqing 
4. Shanghai Hongqiao 
5. Mumbai
Over 40 million passengers

1. Seoul Incheon 
2. Singapore 
3. Beijing 
4. Shanghai Pudong 
5. Hong Kong

Best improvement
Africa

Mauritius
Asia-Pacific

Kolkata
Europe

St. Petersburg
Latin America-Caribbean

Santo Domingo
Middle East

Amman
North America

San Antonio

15 February 2015

South Africa: The art of not curbing investment

If the Davis tax committee's recommendations are followed, tax avoidance could be effectively reined in.


12 February 2015

ICIJ: Prying Eyes? Sovereign Has You Covered

Got a few million bucks you want to protect from the tax man, a nosey spouse or a greedy business acquaintance? Sovereign Management & Legal Ltd. says it has the answers.

The company’s aggressive online marketing has attracted enough customers that the Internal Revenue Service and U.S. prosecutors noticed. In December, they filed a court petition in New York to get records of Sovereign’s customers from HSBC Bank USA and from several delivery and money and wire transfer services, including the Federal Reserve Bank of New York.

And at the end of the year the IRS added Sovereign to its list of firms that trigger higher penalties — from 27.5 percent to 50 percent — for taxpayers who voluntarily disclose previously undeclared offshore accounts.

Seychelles - Update on the Re-organisation of BMI Offshore Bank Ltd (BMIO)

As part of the plan to reorganise BMIO, the Central Bank of Seychelles (CBS) hereby pronounces that it has appointed Mr Huns Biltoo, a Partner of KPMG Mauritius, as reorganising agent in line with Schedule 4 of the Financial Institutions Act 2004 (FIA). Consequently, the reorganising agent will as part of his objectives: 
  • assist with revaluating the bank’s compliance function such that it meets both local and international requirements. 
  • formulate a reorganisation plan which, if approved by all the relevant stakeholders under Schedule 4 of the FIA, will put the bank in a position to sustain a permanent correspondent banking relationship and fully restore normal operations.  
  • BMIO’s board of directors will also be issuing a press release to reassure clients of the work being done. 
Throughout this process KPMG will be acting under the supervision of the CBS. 

11 February 2015

Seychelles: BMIO Press Release

Since November 2014, the day to day management of BMIO bank (the “Bank”) in the Seychelles has been taken over by Central Bank of Seychelles (“CBS”) pursuant to paragraph 3(1) of Schedule 3 of the Financial Institutions Act 2004. The main reason of the take-over was the bank’s loss and inability to re-establish its correspondent banking relationship which is critical for an offshore bank like BMIO.

The shareholders of the Bank would like to communicate the following:
  • CBS has in December 2014 appointed Mr Huns Biltoo a KPMG Mauritius Partner, as Reorganising Agent. The Reorganising Agent is currently undertaking an independent examination of the bank, which is separate from the examination conducted by CBS. The findings of this examination will allow for the assessment of the reasons, and come up with an implementation plan to address the issues including the remediation of the causes that have led to the loss of the Bank’s correspondent banking relationship in the past.
  • The ongoing issue at the Bank is an operational issue rather than one related to the bank’s financial soundness as CBS pointed out in its Press release of 24 October 2014.
  • As regulator of the banking system, one of CBS’ role is to ensure that depositors’ interests are safeguarded. On the basis of financial soundness indicators compiled by CBS on BMIO, there is no indication that depositors’ money held with BMIO are in danger.
  • The shareholders of BMIO are fully collaborating with CBS and KPMG and would like to confirm that the Bank has already started a remediation of customer files. This remediation will allow the accounts of all our clients whose files meet all the relevant compliance requirements, both locally and internationally, to operate normally. We believe this will
  • enhance and reinforce both the credibility and soundness of our client accounts relationships.
  • During the remediation phase, some clients will be receiving requests for updated or additional confirmations arising from the review of client files being performed. The holding of these information by BMIO and the compliance status of a client file from a documentation perspective will be a key requirement for the purposes of effecting both current and future transactions. 

We would like to apologise for the inconvenience and re-assure our clients that the current re-organisation is being done with the interests of our customers at heart.