31 March 2017

The Do’s and Don’ts of Social Media For Lawyers

Knowing how not to use social media is just as important as what you should be doing. Find out what potential pitfalls and ethics violations lawyers face.

30 March 2017

Baker McKenzie Launches 2017 Global Privacy Handbook

The 2017 Global Privacy Handbook gives us a glimpse of notable privacy developments and emerging privacy issues and trends in 58 jurisdictions across the globe. The newest edition has been expanded to cover the EU-US Privacy Shield and the EU GDPR in 13 Game Changers.

WSJ Pro Cybersecurity - Gauging The Cyber Threat: An Executive Briefing

With cyber threats constantly described in the news as “sophisticated” and “increasing,” WSJ Pro Cybersecurity latest special report explores the difficulties that lie ahead for business executives and their organizations.

FSC: Guidelines For Issue of Insurance Policy Documents in Digital Format

The Financial Services Commission, Mauritius (FSC Mauritius), is issuing the Guidelines for Issue of Insurance Policy Documents in Digital Format (the ‘Guidelines’).

The objective of the Guidelines is to set out minima criteria for the guidance of Insurers regarding the issue of insurance policy documents in digital format.

In effect, the Guidelines aim to ensure that the marketing and sale of insurance products through the Internet does not compromise the authenticity, validity and integrity of the insurance policy. The Guidelines are further intended to ensure that Insurers conduct their business in a way that promotes the best interests of consumers and the integrity of the financial services industry in the context of electronic marketing and sale of insurance.

The board of directors of Insurers must adopt internal policies and must establish internal procedures to ensure compliance with the Guidelines. Furthermore, Insurers should incorporate in their internal control system appropriate measures to verify compliance with the procedures, policies and controls set by their board.

The FSC Mauritius would like to thank the representatives of the Working Committee and other stakeholders who have worked collaboratively to finalise the Guidelines.

The Guidelines will be effective as from 01 July 2017.

27 March 2017

Oxfam - Opening the vaults: The use of tax havens by Europe’s biggest banks

Europe’s 20 biggest banks are registering over a quarter of their profits in tax havens – well out of proportion to the level of real economic activity that occurs there, according to a new report by Oxfam and the Fair Finance Guide International today.

The report, ‘Opening the Vaults,’ suggests the discrepancy may have arisen because some banks are using tax havens to avoid paying their fair share of tax, to facilitate tax dodging for their clients, or to circumvent regulations and legal requirements.   

The research was made possible by new EU transparency rules that require European banks to publish information on the profits they make and the tax they pay in every country they operate. The report finds: 

  • Tax havens account for 26 percent of the profits made by the 20 biggest European banks - an estimated €25 billion - but only 12 percent of banks’ turnover and 7 percent of the banks’ employees.  
  • Subsidiaries in tax havens are on average twice as lucrative for banks as those elsewhere.  For every €100 of activity, banks make €42 of profit in tax havens compared to a global average of €19.
  • Bank employees in tax havens appear to be 4 times more productive than the average bank employee – generating an average profit of €171,000 per year compared to just €45,000 a year for an average employee.
  • In 2015 European banks posted at least €628 million in profits in tax havens where they employ nobody. For example, the French bank BNP Paribas made €134 million tax-free profit in the Cayman Islands despite having no staff based there. 
  • Some banks are reporting profits in tax havens while reporting losses elsewhere. For example, Germany’s Deutsche Bank registered low profits or losses in many major markets in 2015 while booking almost €2 billion in profits in tax havens.   
  • Luxembourg and Ireland are the most favored tax havens, accounting for 29 percent of the profits banks posted in tax havens in 2015. The 20 biggest banks posted €4.9 billion of profits in the tiny tax haven of Luxembourg in 2015 – more than they did in the UK, Sweden and Germany combined.
  • Banks often pay little or no tax on the profits they post in tax havens. European banks paid no tax on €383 million of profit they posted in seven tax havens in 2015.  In Ireland, European banks paid an effective tax rate of no more than 6 percent – half the statutory rate – with three banks (Barclays, RBS and Crédit Agricole) paying no more than 2 percent.     

Manon Aubry, Oxfam’s Senior Tax Justice Advocacy Officer said: “New EU transparency rules give us a glimpse into the tax affairs of Europe’s biggest banks and it’s not a pretty sight. Governments must change the rules to prevent banks and other big businesses using tax havens to dodge taxes or help their clients dodge taxes.

All companies and individuals have a responsibly to pay their fair share of tax. Tax dodging deprives countries throughout Europe and the developing world of the money they need to pay for doctors, teachers and care workers,” said Aubry. 

Many countries are being cheated out of the money needed to tackle poverty and inequality by corporate tax dodgers, with poor countries being hit the hardest.  Tax dodging by multinational companies costs poor countries over €90 billion every year. This is enough money to provide an education for the 124 million children who aren’t in school and fund healthcare interventions that could prevent the deaths of at least six million children. 

Transparency measures, such as the EU rules on public country-by-country reporting, are vital tools in the global fight against tax dodging. However, a new European Commission proposal designed to extend public reporting beyond the banking sector is flawed. The proposal is limited to companies with a turnover of €750 million or more, a measure that would exclude up to 90 percent of multinationals, and does not require companies to report on their activities in all the countries they operate - including developing countries.   

The EU’s transparency rules are starting to open up the often murky world of corporate taxation to public scrutiny.  These rules must now be extended to ensure all large corporations provide financial reports for every country where they operate. This will make it easier for all countries – including the poorest – to establish if companies are paying their fair share of tax or not,” said Aubry. 

Z/Yen - The Global Financial Centres Index 21 (GFCI 21)

Today Z/Yen publishes the twenty-first Global Financial Centres Index (GFCI 21). We are holding simultaneous launches in Milan and Shenzhen. Z/Yen are delighted to be working in collaboration with the China Development Institute (CDI). The GFCI rates 88 financial centres. The top ten are shown to the table below. Full details are available here. The main headlines are shown below.
Brexit and the US election have had a significant impact. London and New York fell 13 and 14 points respectively. These were the largest declines (except for Calgary) in the top 50 financial centres.
No change in the top five positions. Despite the ‘interesting times’ in which we live, London, New York, Singapore, Hong Kong and Tokyo remain the top five financial centres.
The gap between third place Singapore and second place New York continues to close. Singapore rose by eight points and is now only 20 points behind New York having been 42 points behind in GFCI 20.
Western European financial centres are still volatile. Of the 29 GFCI centres in the region, 16 declined and 12 rose. Geneva recovered some of the ground it lost in GFCI 20. Ratings for Amsterdam, Vienna and Gibraltar fell significantly.
The leading financial centres in the Asia/Pacific region rose in the GFCI ratings.Beijing in particular rose significantly and in now within the top twenty centres worldwide.
Centres in the USA, with the exception of New York, rose in the index. Los Angeles moved up 20 points into the top 20 global centres. In Canada, Toronto, Montreal and Vancouver all performed well in GFCI 21. Financial professionals continue to favour safety and stability in their choices of location.
Five of the top six Eastern Europeancentres rose in the ratings. Istanbul was the exception to this pattern, falling 11 points. Istanbul is now in 66th place in the GFCI having been 45th a year ago. Continued conflict and political uncertainty affect confidence in the Turkish capital.
Financial centres in the Middle East and Africa did well in GFCI 21. Apart from a very small decline by Dubai, the other main centres improved in the ratings. There were strong rises for Abu Dhabi and Tel Aviv.
Latin American centres continue to struggle. Sao Paulo, Rio de Janeiro and Panama all fell significantly. Buenos Aires and Santiago remain associate centres having failed to accumulate a sufficient number of assessments to enter the main index.
Offshore centres had mixed results. The British Crown Dependencies remained stable, whilst Caribbean centres had mixed fortunes with the Cayman Islands and the British Virgin Islands falling, but Bermuda and the Bahamas rising slightly.
Mark Yeandle, Associate Director at the Z/Yen Group and the author of the GFCI, said "We live in uncertain times and financial professionals hate uncertainty. Brexit has caused uncertainty in Europe and the election of Donald Trump has caused uncertainty globally.”
Professor Fan Gang, President of the CDI, said "The gradual phasing-out of easing monetary policies in Western countries may have significant impacts on the structure of global financial markets, we need to monitor this closely.”
1London782
2New York780
3Singapore760
4Hong Kong755
5Tokyo740
6San Francisco724
7Chicago723
8Sydney721
9Boston720
10Toronto719




22 March 2017

Un réseau de faux médicaments devant le tribunal correctionnel de Marseille

Le gérant de Multiscope Trading, une société offshore installée à l'Ile Maurice et la responsable d'une entreprise implantée à Nice comparaissent devant le tribunal correctionnel de Marseille pour avoir participé à l'entrée en Europe de plus de quatre tonnes de faux médicaments fabriqués en Chine.

21 March 2017

Increasing Digital Clutter Leaves Consumers Exposed, Kaspersky Lab Study Reveals

Kaspersky Lab today announced a new report, which highlights consumers’ attitudes and behaviors toward their digital clutter, and how a lack of app maintenance could leave devices vulnerable to security threats.

Digital Clutter is a phenomenon resulting from increased amounts of content stored on smartphones, tablets and computers. The findings are part of a new report compiled by Kaspersky Lab called “Digital Clutter and Its Dangers.”* The study is based on insight gained from an online survey across 17 countries, an experiment into app performance by Kaspersky Lab internal testers and statistical analysis from the Kaspersky Security Network (KSN).

The study found that consumers typically install 12 Android apps every month and delete only 10, in effect adding two apps to their device on a monthly basis. A build-up of apps means that it’s important to keep them up-to-date to prevent a mobile malware attack through an app vulnerability. Although half (55%) of survey participants said they regularly revise the contents of their devices and delete unused apps and content, a quarter of consumers (28%) only update apps on their devices when they are forced to, and 10 percent try not to do it at all.

One of the main dangers is that the apps themselves can put user data and devices at risk. Technical findings from Kaspersky Lab show that of 100 Android apps users can manage (i.e. install and delete), 83 have access to sensitive user data, such as contacts, messages and data, and can even make calls and send SMSs.

In addition, findings from KSN show how apps can operate without user permission. When a representative sample of 66 of the most popular Android apps were tested, 54 launched in the background without users even touching them, consuming, on average, 22Mb of traffic per day without any user interaction.

One way to control what an app or program can access is to be aware of application settings, and understanding its terms & conditions. However, the report found that only 33 percent of people intentionally adjust the settings of each application on any devices. Furthermore, 63 percent don’t read licensing agreements, read it too quickly or can only recall main points or not much of the material.

Users are exposing devices and personal data to security threats by failing to undertake simple but essential care for their devices,” said Andrei Mochola, head of consumer business at Kaspersky Lab. “The build-up of digital clutter on our devices means that we increasingly overlook the maintenance of these apps. We do so at our peril because this can lead to a wide range of problems such as device glitches, battery life issues or malware infection. We urge users to put their digital houses in order. Just like a clean, uncluttered room breathes fresh energy into your home and life, in the same way, an uncluttered computer or smartphone results in a more enjoyable, and a crucially, safer experience.

In order to combat the clutter and protect your personal data, users are advised to take the following steps:
  • Update apps and software – regular updates should be undertaken as soon as new versions of apps and programs are released;
  • Change app settings – manage how each app interacts with your devices. Failure to maintain settings – like those that can track user locations and share data with third party servers - may result in unused apps gaining access to information on the device without you being aware.
  • ‘Spring clean’ your device – clear out and refresh the information stored on your devices; determine what information is stored on which apps and what permissions each program has.
  • Use dedicated software – software cleaners such as the one integrated into Kaspersky Lab flagship security solutions, scan all applications installed on your device and mark those posing potential risk or are rarely used.

*The study “Digital Clutter and its Dangers” was based on insight gained from a unique combination of online research and technical analysis of security threats and app performance:
  • Statistics from the Kaspersky Security Network, a cloud-based system that processes depersonalized cyber threat-related statistics received from millions of Windows and Android devices owned by Kaspersky Lab users across the globe.
  • A real-life experiment on Android devices analyzed the performance of applications was conducted in January 2017 by Kaspersky Lab internal testers.
  • An online survey conducted by research firm Toluna and Kaspersky Lab in January 2017 assessed the attitudes of 16,250 users aged over 16 years old from 17 countries. Data was weighted to be globally representative and consistent, split equally between men and women.

14 March 2017

Cim Financial Services Limited (CFSL) - Substantial Transaction Circular (STC)

The Board of Directors of Cim Financial Services Ltd (Cim) announced that the company has reached an agreement to sell its Global Business activities (Cim Global) to SGG Group for approximately MUR 3.2 billion (USD 90.3 million). The sale would represent a profit on disposal of MUR 2.5 billion or MUR 3.60 per share. The transaction is subject to regulatory approval as well as the approval of the shareholders of Cim.

The proceeds of the sale will allow Cim to pursue its growth plans in Mauritius and in the region for its fast growing Finance and Property businesses.

Paul Leech, CEO of Cim Group, commented on the transaction: “The decision to sell Cim Global is timely given the increasing pace of consolidation internationally in the Global Business sector. The business is being sold at an attractive multiple and the cash proceeds will give us the ability to pursue our ambitious development plans in our finance and property businesses.

The arrival of another major international player in the Mauritius Global Business sector represents a major vote of confidence in the attractiveness of the jurisdiction and brings not only a significant piece of FDI to the country but also the opportunity to expand the range of services offered to multinational clients”.

Circular in respect of the proposed disposal of the entire holdings of Cim Financial Services Ltd (the “Issuer” or “CFSL”) in Cim Global Business (“CGB”) to SGG Participations S.A. (the “Buyer” or “SGG”), (the “Transaction”).

12 March 2017

Mauritius Signs Double Taxation Agreement With Ghana

The Government of Mauritius has signed a Double Taxation Avoidance agreement (DTA) with the government of Ghana.

The countries have also set up a Ghana-Mauritius Permanent Joint Commission on Bilateral Cooperation, as part of measures to facilitate trade between the two countries.

As well, Ghana and Mauritius have agreed to collaborate on an Investment promotion and protection agreement to better channel investment into each other's country, possibly via Special Investment Zones.

Foreign Affairs and Regional Integration Minister, Hon Shirley Ayorkor Botchwey, signed the agreement on behalf of Ghana, while Hon Seetanah Lutchmeenaraidoo, Minister for Foreign Affairs, Regional Integration and International Trade signed on behalf of Mauritius.

The DTA is subject to ratification by Ghana's Parliament.

The agreements were signed on Saturday March 11, 2017 at Port Louis, Mauritius in the lead up to the celebration of the Indian Ocean nation's 49th Independence anniversary, which falls on March 12.

Speaking at a joint press conference after the signing ceremony, Ghana's Vice President, Alhaji Dr Bawumia, who is the Special Guest for the Celebrations, explained that the agreements form part of Ghana's quest for greater cooperation with the rest of the world, especially Africa, in order to boost trade.

"We have seen the manifestation of the first fruits of this Joint Permanent Commission with the signing of the historic double taxation agreement between Ghana and Mauritius, and we believe that this will provide a platform to give confidence to investors both in Ghana and Mauritius to undertake investments in our respective countries and not be taxed twice by our respective governments. We believe this is just the beginning of our cooperation," Vice President Bawumia indicated.

Dr Bawumia emphasized the need for greater intra-African trade to better improve the lives of Africans.

"Our government believes very strongly there has to be more trade within the African continent and among countries of the South. There has to be more investment, and more cooperation. We are happy to note that this type of cooperation that we seek is being manifested, especially recently in our relationship with Mauritius, in the area of trying to set up Ghana as an International Financial Services Centre in the West African Sub region," Dr Bawumia indicated.

Prime Minister of Mauritius, H. E. Anerood Jugnauth, announced that a number of framework agreements have also been reviewed, including the setting up of a Technology Park at Dawa in the Greater Accra region, and investments in the energy and tourism sectors.

"We have also agreed to pursue consultations on two project proposals submitted by Mauritius, namely, the setting up of a solar energy power generation, and a tourism and hospitality project providing for the construction of a coastal resort in Ghana."

"Cooperation between the Public Utility Regulatory Commission and Mauritius was also discussed" Prime Minister Anerood Jugnauth disclosed.

The Ghanaian delegation included Hon Ursula Owusu-Ekuful, Minister for Communication, Hon Mohammed Awal, Minister for Business Development, Mr Reginald Grant, Chief Executive Officer of the Ghana Investment Promotion Centre, and other senior government officials.

10 March 2017

Affaire Alvaro Sobrinho: Quel est le rôle de la Management Company?

Comment les noms de certaines personnes, qui prétendent n’avoir aucun lien avec les sociétés de l’homme d’affaires Alvaro Sobrinho et n’avoir jamais été sollicitées, ont-ils atterri dans les dossiers de ces sociétés? Et pourtant, c’est le cas, que ce soit en tant que cabinet de conseils légaux ou directeur sur l’Investment Committee d’Alvaro Sobrinho (AS) African Asset Management Ltd. Serait-ce la faute à la Management Company? Quels sont alors son rôle et ses responsabilités? Éclairage

09 March 2017

Bank of Mauritius: Public Notice

Following reports in the media regarding the refusal of a banking licence by the Bank of Mauritius (Bank) to an entity related to Mr Alvaro Sobrinho, the public is hereby informed that no such entity ever made any application for a banking licence. Accordingly, the issue of refusal of an application by the Bank for a banking licence to that entity does not arise.

As regards media reports on the issue of Investment Banking licence, the Bank wishes to apprise the public that the Ministry of Financial Services, Good Governance and Institutional Reforms made a proposal to introduce a new category of licence, namely Investment Adviser – Corporate Finance under Section 30 of the Securities Act. As the list of activities of an Investment Adviser – Corporate Finance and those of an Investment Bank would overlap and could lead to regulatory arbitrage, the Bank agreed that Investment Banking Licensing be transferred to the Financial Services Commission, provided that such activity does not entail deposit taking.

It is to be further noted that Rule 6(2) of the Financial Services (Investment Banking) Rules 2016, specifically provides that, ‘No person holding an Investment Banking Licence shall conduct Banking Business as defined in the Banking Act unless that person holds a banking licence issued by the Bank of Mauritius under the Banking Act’.

08 March 2017

LexisNexis® Guide to FATCA & CRS Compliance: Background and Current Status of FATCA

The Foreign Account Tax Compliance Act, referred to as FATCA, does not operate in a global tax vacuum. It is nearly impossible to comprehend fully its impact unless its highly technical procedural provisions are viewed in context. This introductory chapter will provide certain background information necessary to understand FATCA, its offspring like the OECD's CRS, and the impact of these initiatives.

06 March 2017

deVere Group receives investment banking licence

deVere Group, one of the world’s largest independent financial advisory organisations, has today announced it has received an investment banking licence.

deVere’s Investment bank is licensed and regulated by the  Financial Services Commission of Mauritius.  It is expected to be fully operational within a matter of weeks.

The investment banking licence comes just six weeks after deVere launched its own private bank, deVere Group Bank St Lucia, the first private bank to be owned by an independently-owned financial advisory firm.

deVere Group’s founder and CEO, Nigel Green, comments: “We’re thrilled to confirm that deVere now has its own investment banking licence.

Following an exhaustive fact-finding mission to find the most suitable jurisdiction for us to enter into the investment banking sector, we had Mauritius at the top of our wish list. Mauritius has a robust international reputation, which is based on good governance, pro-business policies, legal expertise and an educated, English and French-speaking population.

He continues: “After 14 years of having the market-leading position within the international advisory sector, and continuing to do so with an ambitious growth strategy this year and next, I believe we are best-placed to know the needs and wants of expat and international investor clients.  

This investment banking licence will, of course, allow us to further meet these evolving needs and wants by enabling us to develop and provide new, specialist and innovative financial products and services to help our clients achieve their long-term financial goals.  

Like our recently announced private bank, deVere Investments will become an integral part of our global business and will, naturally, have a laser-like focus on delivering an unrivalled, results-driven service for our clients.

Nigel Green concludes: “Receiving our investment banking licence is another landmark moment in deVere’s ongoing success story.  Many would be satisfied with the world-class international advisory organisation and the private bank, but at deVere we constantly seek to develop and grow our business inline with client demand.

When we launched the private bank in January I said that it ‘further demonstrates our status as a leader in the global financial community.’  The investment banking licence, I believe, cements it.