Rajiv Servansingh: The Great Panama Hypocrisy

The greatest features of the immediate post World War II world economic history had been the great “decolonization” movement and the “swinging 60s” which marked the beginning of almost thirty years of constant economic growth in the most developed countries. This was then followed by the frenzied globalization of the world economy driven by developments in communication and travel technologies and the neo-liberal credo of free market ideology.

Excerpts:

“Offshore financial centres have an important role to play in the present and future global economic paradigm. Small islands and developing countries which use their resources to position themselves as providers of legitimate and transparent (subject to international norms) services to a community of increasingly demanding but willing clients should be left to carry out their business without undue pressure...” 

“The OECD club of rich nations would do well to look into their own backyard before raising a hue and cry and accusing all “offshore financial centres” of being the den of crooks. The underlying Euro-centred sense of high moral grounds and resulting preconceptions and suspicion towards these entities (read the OXFAM papers) deserves to be censured without reserve. As The Guardian wrote recently even while commenting on the Mossack Fonseca affair, ‘Using offshore structures is entirely legal. There are many legitimate reasons for doing so...’”

Mauritius Times 

Offshore in central London: the curious case of 29 Harley Street

On a central London street renowned for high-class healthcare sits a property that houses 2,159 companies. Why has this prestigious address been used so many times as a centre for elaborate international fraud?

Hotel Flowers of Paradise Entrecôte Wagyu à volonté

Mauritius Revenue Authority: Draft CRS Guidance Notes

Implementation of CRS Guidance Notes

IFC Review - The Panama Papers: Determining the Future of Financial Services

Mark Brantley, Deputy Premier of Nevis, and Professor Gilbert NMO Morris consider the fallout from the Panama Papers and examine the role they will play in determining the future of financial services.

IFC Review - The Case for Offshore

In the wake of the media frenzy over the illegal leak of private information in Panama, Richard Hay dispels the myths perpetrated by detractors and the media regarding the offshore financial industry.

IFC Review - Panama Leaks: Through the Offshore Looking Glass

Anthony Travers considers the impact of the Panama leaks on offshore financial centres and attacks the hypocrisy of onshore centres in their rush to demonise offshore centres.

IFC Review - Panama Leaks: Exposing Private Information Serves an Ideological Agenda

Daniel Mitchell and Brian Garst examine how in the midst of the controversy over the Panama Leaks the legality of how the private information was obtained and is being used has been overlooked.

FSC Mauritius launches the operation of the Online Data Capture System (ODCS)

Communiqué

Circular Letter CL180416 - Filing Of Audited Financial Statements or Annual Report through the Online Data Capture System

Submission Form

Nicholas Shaxson: Five myths about tax havens

News broke this month of an unprecedented data leak: Some 11.5 million documents containing detailed, confidential information about more than 200,000 offshore companies involved with Mossack Fonseca, a Panamanian law firm, had fallen into the hands of the International Consortium of Investigative Journalists via an anonymous informant. Collectively known as the Panama Papers , the files revealed just how widespread the abuse of offshore tax havens is among the world’s elite politicians and business people. Still, myths persist about the supposed benefits of offshore tax havens, both for the countries that stash wealth there and for the havens themselves. Here are a few:

FSC Mauritius issues Public Notice - NinetyEast

US Department of State Country Report on Human Rights Practices for 2015: Mauritius

Mauritius is a multiparty democracy governed by a prime minister, a council of ministers, and a national assembly. International and local observers judged elections in December 2014 to be generally free and fair. Civilian authorities maintained effective control over the security forces.

The most important reported human rights problems were security force abuse of suspects and detainees, and violence and discrimination against women.

Other reported human rights problems included arbitrary arrests, corruption, abuse and sexual exploitation of children, human trafficking, discrimination and abuse based on sexual orientation or gender identity, discrimination against persons with HIV/AIDS, restrictions on labor rights, antiunion discrimination, and child labor.

The government took steps to prosecute and punish officials who committed abuses, whether in the security services or elsewhere in the government; but enforcement was inconsistent, and sometimes politically motivated, resulting in the appearance of impunity. 

Mauritius 2015 Human Rights Report

After the Panama papers: Who next?

The travails of Mossack Fonseca, the Panamanian law firm from which a trove of documents about offshore firms it had helped create was recently leaked, intensified on April 12th, when prosecutors raided its head office. But as the firm defends itself, campaigners for financial transparency are already looking for other Mossacks and other Panamas.

Unlocking Mossack Fonseca: The key’s in Sin City

With numerous governments already announcing probes into the “Panama papers” and others preparing to do so, Mossack Fonseca, the law firm from which the hoard of documents about offshore companies was leaked, will be receiving lots of inquiries in the coming months. Until now, getting information on clients of law firms in Panama has been about as common as ice-skating on the Canal. But sleuths may soon find it a lot easier, thanks to a court ruling in, of all places, Las Vegas.

Harvard Business Review: Revolutionizing Customer Service

Getting customer interactions right has never been more important, especially since social media has given unhappy customers a louder voice. Many companies want to raise their level of service, but the question is, How?

About the Research: “Engineering a Service Revolution: How to Establish a Strong Service Culture Fast,” by Jochen Wirtz and Ron Kaufman (working paper)

In defence of ‘tax havens’: offshore banking is not the same as dodgy dealing

Offshore investors are not just the uber rich highlighted by the Panama Papers. Many are hardworking people looking for better returns and more flexibility

Why Iceland Swapping Out Its Prime Minister Won't Change Anything

Sigmundur David Gunnlaugsson has resigned in the wake of the Panama Papers scandal, but does it matter?

CaféBabel - Lanceurs d'alerte : Rudolf Elmer, l'Inside Man (1/2)

David contre Goliath 2.0. C'est peu ou prou l'histoire d'un ancien banquier suisse, Rudolf Elmer, qui poursuit un combat acharné contre le secret bancaire, l'évasion fiscale, la justice zurichoise et «les médias complices». À quelque jours du «leak du siècle» et des Panama Papers, cette histoire aux allures de thriller était diffusée à Bruxelles, sur grand-écran, grâce au réalisateur David Leloup, qui a suivi la vie mouvementée d'Elmer pendant 7 ans. Le titre du documentaire? A Leak in Paradise : l'homme qui voulait détruire le secret bancaire.

Accenture: The ethics and conduct risk challenge for US banks

UK banks have been pushed to define bank conduct and to develop new approaches to conduct risk and regulation. Regulators have expanded their focus from narrow corporate governance issues to an emphasis on making sure customers are treated fairly. As US banks undertake a similar journey, they can be guided by the experience of their UK counterparts.

In this effort, an emphasis on customer-centricity and cultural change can help avoid legal and regulatory risk while creating value for customers and shareholders. US banks can learn from what UK banks have done, both to make regulatory and compliance-related activities more effective and more efficient and to help establish a stronger competitive position.

John Perkins: Confessions Of A Panama Papers Hit Man

As an Economic Hit Man (EHM) in the 1970s I spent a great deal of time in Panama. I hate to admit it, but I helped forge the system that has now been exposed in the Panama Papers. It is a system of legalized crimes. How else can we describe it?

Above all, the Panama Papers should encourage each and every one of us to understand that we have a responsibility to ourselves and future generations to reverse this terribly destructive course we’ve permitted our leaders to take. The New Confessions of an Economic Hit Man provides strategies and lists that every individual can employ to transform the Death Economy into a Life Economy. The short version is that we can all use social media to force corporations to transform the Death Economy into a Life Economy.

Engineering a Service Revolution: How to Establish a Strong Service Culture Fast

Traditional approaches to service improvement often don’t work. They are fragmented, incremental, and based on faulty assumptions about the true nature of service. Companies try these approaches again and again, and while they may enjoy temporary surges of improvement, people run out of steam and the improvement dies. Instead, many companies would benefit from a more dramatic service revolution that quickly rebuilds their culture around the vision of taking action to create new or greater value for others. 

Working Paper #20160304-1

An article based on this research titled “Revolutionizing Customer Service” published in Harvard Business Review, April 2016

Gokulsing Chambers: Legal Risk Management Training Program

Legal Risk Management Training Program in association with Virtuose a leading training institute in Mauritius specialising in high level workshops, conferences and networking events.

This MQA approved program aims to educate businesses of all types to manage their legal risks. 

UK: Companies to be liable for employees who facilitate tax cheating

The UK will bring forward plans to introduce a criminal offence for corporations who fail to stop their staff facilitating tax evasion, the Prime Minister will announce today in a statement to the Commons, ahead of next month’s summit to tackle corruption in all its forms.

For the first time, companies will be held criminally liable if they fail to stop their employees from facilitating tax evasion. At the March 2015 Budget the Chancellor said the government would be delivering on its pledge to introduce the measure in this Parliament. Today the Prime Minister is confirming that the offence will be introduced in legislation this year.

The move is part of the government’s efforts to clamp down on corruption in all walks of life. The government has already confirmed plans to create a cross-agency taskforce to investigate all evidence of illegality that has emerged from the so-called ‘Panama Papers’.

Prime Minister David Cameron said:

This government has done more than any other to take action against corruption in all its forms, but we will go further. 

That is why we will legislate this year to hold companies who fail to stop their employees facilitating tax evasion criminally liable.

On 12 May, the Prime Minister will host the London Anti-Corruption Summit aimed at stepping up global action to expose, punish and drive out corruption in all walks of life.

The summit will seek to galvanise a global response to tackle corruption. As well as agreeing a package of actions to tackle corruption across the board, it will deal with issues including corporate secrecy, government transparency, the enforcement of international anti-corruption laws, and the strengthening of international institutions.

It will be the first summit of its kind, bringing together world leaders, business and civil society to agree a package of practical steps to:

• expose corruption so there is nowhere to hide;
• punish the perpetrators and support those affected by corruption;
• drive out the culture of corruption wherever it exists

The new criminal offence will build on the government’s existing record in tackling tax evasion, and corruption more broadly. Since 2010, the government has:

• led the way on tackling tax evasion and tax avoidance, bringing in more than £2 billion from offshore tax evaders;
• been the first member of the G20 to establish a public central registry of company beneficial ownership information which will go live in June 2016, and pushed its G7 and G20 partners to do the same;
• introduced some of the world’s strictest legislation on bribery through the Bribery Act 2010, making it a criminal offence for a company to fail to prevent a bribe being paid,
• co-chaired a UN panel that put tackling corruption at the heart of the new UN Development Goals and transformed the way the international community fights poverty

Oxfam: Majority of World Bank’s private investments go to companies that have a presence in tax havens

Fifty-one of the 68 companies that were lent money by the World Bank’s private lending arm in 2015 to finance investments in sub-Saharan Africa use tax havens, Oxfam revealed today.

Oxfam’s analysis focused on International Finance Corporations (IFC) investments in Sub-Saharan Africa.  It shows that together these 51 companies, whose use of tax havens has no apparent link with their core business, received 84 percent of IFC investments in that region in 2015. It also reveals that the IFC has more than doubled its investments in companies that use tax havens in just 5 years - from $1.20 billion in 2010 to $ 2.87 billion in 2015. 

The findings come ahead of the IMF-World Bank Spring meetings in Washington DC on 13-15 April and in the wake of the Panama Papers scandal which revealed how powerful individuals and companies are using tax havens to hide wealth and dodge taxes.

In Oxfam’s study, the most popular haven for IFC’s corporate clients was Mauritius; 40% of IFC’s clients investing in Sub-Saharan Africa have links there. Mauritius is known to facilitate “round-tripping”. This is where a company shifts money offshore before returning it disguised as foreign direct investment, which attracts tax breaks and other financial incentives.

Sub-Saharan Africa is the poorest region in the world. It desperately needs corporate tax revenues to invest in public services and infrastructure. The region lacks money to provide enough skilled birth attendants, clean water or mosquito nets, for example, resulting in high rates of child mortality; one child in 12 dies before their fifth birthday.

”It doesn’t make sense for the World Bank Group to spend money encouraging companies to invest in “development”  while turning a blind eye to the fact that these companies could be cheating poor countries out of tax revenues that are needed to fight poverty and inequality,” said Oxfam’s tax policy advisor, Susana Ruiz.  

“The World Bank Group should not risk funding companies that are dodging taxes in Sub-Saharan Africa and across the globe. It must put safeguards in place to ensure that its clients can prove they are paying their fair share of tax.”

The IFC invested more than $86 billion of public money in developing countries between 2010 and 2015; 18.6% of it spent in Sub-Saharan Africa. The IFC has a significant focus on financial markets, infrastructure, agribusiness and forestry, among other sectors.     

While the IFC arguably leads the private sector with its disclosure, environmental and social standards, the public still has no access to information about where over half of the institution’s financing ends up, because it is done through opaque financial intermediaries. It also continues to face major challenges in measuring its overall development impact, and ensuring that the projects it funds do not harm local communities. This latest Oxfam research shows that the organisation has a long way to go in ensuring that its clients are responsible tax payers, too.

Oxfam is calling for the IFC to develop new standards to ensure it only invests in companies that have responsible corporate tax practices. For example companies should be transparent about their economic activities so it’s clear if they are paying their fair share of tax where they do business. 

The World Bank and IMF must work with all governments to further reform the international tax system and help to stop tax dodging by wealthy individuals and corporations. This should include action to end the era of tax havens.

Oxfam: The IFC and Tax Havens

Inequality is rising around the world. Fighting inequality must be an integrated priority for everyone in development, to promote and achieve sustainable development.

Oxfam analysis reveals that 51 of the 68 companies that were lent money by the World Bank’s private lending arm in 2015 to finance investments in sub-Saharan Africa use tax havens. Together these companies, whose use of tax havens has no apparent link to their core business, received 84 percent of the International Finance Corporation’s investments in the region last year.

As the World Bank and IMF prepare for their Spring Meeting in Washington 13–15 April, and in the wake of the Panama Papers scandal which reveals how powerful individuals and companies are using tax havens to hide wealth and dodge taxes, Oxfam is calling on the World Bank Group to put safeguards in place to ensure that its clients can prove they are paying their fair share of tax.

UK launches cross-government taskforce on the ‘Panama Papers’

The Prime Minister, David Cameron, has announced a new taskforce to deal with the so-called Panama Papers.

The taskforce will be jointly led by HMRC and the National Crime Agency and draws on investigators, compliance specialists and analysts from HMRC, the National Crime Agency, the Serious Fraud Office and the Financial Conduct Authority.

The Prime Minister has committed to provide resources to ensure that the files are fully investigated, once shared with HMRC, including initial new funding of up to £10 million to support the taskforce’s work.

Between them, these agencies have some of the most sophisticated technology, experts and resources to tackle money laundering and tax evasion anywhere in the world.

The taskforce will report its progress to the Chancellor and Home Secretary later this year.

Prime Minister David Cameron said:

The UK has been at the forefront of international action to tackle the global scourge of aggressive tax avoidance and evasion, and international corruption more broadly. 

There is clearly further to go and this taskforce will bring together the best of British expertise to deal with any wrongdoing relating to the Panama Papers. 

This world-class operation will report to the Chancellor and the Home Secretary on their strategy for taking action later this year, when we will update Parliament.

Financial Secretary to the Treasury David Gauke said:

Everyone should pay their fair share of tax, just as the honest majority already does.

No government has done more to make sure we crack down on tax evasion and aggressive avoidance, both here in the UK and internationally.

But as the Panama papers show, tax evasion is part of a wider set of international criminality activity together with money laundering, illicit finance and evading sanctions.

The new taskforce announced today will further tighten the screw on those who think they can get away with dodging tax that’s due in this country. It will also further enhance our ability to tackle financial crimes across the board, leaving no stone unturned.

Our message is clear: there are no safe havens.

HMRC experts, who have tracked down £2 billion from offshore tax dodgers since 2010, are already investigating 700 current leads they have with a link to Panama.

This new taskforce will make sure the full arsenal of UK financial compliance is deployed, combining their skills to maximum effect.

The Chancellor is working with other major countries to speed up progress towards sharing beneficial ownership information, so that enforcement agencies can share information on who really owns companies. This would allow for more effective investigation of financial wrongdoing.

The UK will publish its own register of company beneficial ownership from June 2016, making it clear who the real owners of companies are, the first major country to have such a list in place and the information it contains will be free for anyone to access.

These latest actions build on strong action the government has taken since 2010 to revolutionise tax transparency and tackle tax avoidance and evasion.

In this Parliament alone the government will legislate for over 25 measures to make sure people do not get out of taxes due, together raising £16 billion by 2021.

OPÉRATION « PANAMA PAPERS » : 30 Mauriciens et 97 sociétés clients de Mossack Fonseca

L'opération Panama Papers, nom de code utilisé dans l'édition de lundi dernier du quotidien français Le Monde, avec la fuite de plus de 11,5 millions de documents confidentiels du cabinet d'avocats d'affaires Mossack Fonseca, du Panama, a atteint les rivages de Maurice. 

The Economist: The Panama papers - A torrential leak

There is much in the 2.6 terabytes of data that is yet to be noticed or revealed. The ICIJ has been drip-feeding stories daily after publishing the initial batch. More revelations were expected after The Economist went to press. And there is plenty more beyond Mossack that might be leaked: the firm has only 5-10% of the global market for shell companies. No wonder that, as one adviser to the wealthy puts it, “We’re now telling clients they have to assume anything they do offshore will become public, and they’ll have to be able to justify it when it does.

The Economist: Leak of the century - The lesson of the Panama papers

Three years ago a watchdog published a series of reports on tax havens based on leaks of confidential documents. Some nervous clients of Mossack Fonseca, a law firm in Panama that specialises in setting up offshore companies, asked if their secrets were safe. The law firm told them not to fret; its data centre was “state of the art” and its encryption algorithm was “world class”. Whoops. This week the same watchdog, the International Consortium of Investigative Journalists (ICIJ), published the first stories based on a trove of leaked data on Mossack Fonseca’s clients

Financial Times: Has the sun set on offshore tax shelters?

The revelations in the Panama Papers have shone a light into the world of offshore tax havens and world leaders have been under scrutiny for their links to these schemes. Does this mark the end of offshore tax shelters? Financial Times commentators discuss.

Dirty little secrets: Inside the ‘Wikileaks of the ultra-rich and ultra-powerful’

A new trove bigger than Wikileaks exposes the hidden underworld of drug dealers, sex traffickers, and tax cheats. Fusion takes you inside.

Anil Gujadhur: The Panama Papers

We cannot afford to be cavalier about driving away investors if we really want to consolidate Mauritius’ international financial business. It is ‘our job’ to build up trust about our jurisdiction, not that of our international competitors

Panama, which lies between North and South America, is famed for its canal which provides shipping links connecting the Pacific and the Atlantic Ocean. For those who know, it is also an important international offshore centre.

This week it was at the centre of global news following the leaking of some 11.5 million documents belonging to a Panama-based law firm, Mossack Fonseka, first to German newspaper, Süeddeutsche Zeitung, and then, through it, to a host of investigative journalists, including the BBC. The BBC aired on Monday this week the news that the leaked documents revealed how the rich and powerful hide their accumulated wealth in an offshore jurisdiction such as Panama.

Excerpts:

“One doesn’t have to condone malpractices wherever they emanate from. Malpractices are malpractices, no less. But it would be naïve to assume that thefts of all sorts started only when offshores were first set up on the European continent and in the US… Likewise, secrecy has not been invented by offshore business activity. Besides, financial institutions in places like Mauritius are not ‘secretive’; they are required to respect the ‘confidentiality’ of customers’ dealings with them in accordance with law which is applicable not only in Mauritius but in all decent banking systems all over the world…”

“Powerful countries such as Switzerland, the UK and Singapore get away from being blamed in as strong terms as less well-off countries like Mauritius in such cases. The powerful ones place themselves as more “respected” jurisdictions than the rest by virtue of the fact that they can deploy very sophisticated techniques to shelter themselves in a club apart of stricter jurisdictions as regards strict adherence to rules in the conduct of their international financial businesses. Lesser economies like Mauritius usually get targeted and tarnished in public…”

Mauritius Times 

Jean-Claude de l’Estrac ‘Le gouvernement est comme un Ponzi politique… ...qui annonce pour demain les dividendes prévus pour hier’

• ‘Le climat politique actuel ne contribue aucunement à créer les conditions d’une croissance forte’
• ‘Les incertitudes politiques freinent l’élan du secteur privé, le fonctionnement bicéphale Jugnauth-Jugnauth alimentent les contradictions. Le ballet de ministres à l’ICAC achève de détruire le crédit d’une équipe censée venue faire de la politique autrement’

Ayant voté pour l’alternance, les citoyens ordinaires s’attendaient à un changement radical dans le monde politique. Force est de constater que la déception est apparente sur tous les visages au point de ne plus remarquer ce qui fait honneur à la nation au niveau régional ou international. De plus en plus, chacun se tourne vers les innombrables maux qui rongent la société et se pose des questions sur l’avenir des jeunes. Dans quelle mesure y aura-t-il un renouveau sur les plans politique et socio-économique dans les mois à venir ? Jean Claude de l’Estrac nous en parle…

Extraits:

« Quoi qu’il arrive, je vois ce gouvernement tout à fait capable de tenir jusqu’à la fin de son mandat et résister à une opposition divisée et en panne de crédibilité. Mais son principal ennemi c’est lui-même, une implosion n’est pas à écarter. Une implosion : cela a lieu quand une organisation s’effondre en raison de ses problèmes internes. Nous y sommes presque. Pour après, je vois une recomposition des alliances, mais peut-être ai-je trop vu… »

« Le premier «miracle» c’était le plein emploi dans un pays qui possédait une main d’œuvre abondante et pas chère, disposée à travailler en usine pour quatre sous. Aujourd’hui, il n’y a pas de main d’œuvre disponible, quand il y en a, elle ne veut pas travailler, et elle est chère en plus. Si vous faites une croissance forte dans ces conditions, alors là, ce sera effectivement miraculeux !… »

Mauritius Times

The Rich Bastard's Guide to Choosing Which Tax Haven Is Right For You

Like us, you probably read the Panama Papers with a growing sense of disbelief.

WTF? How did all these wealthy bastards get away with paying no tax while we're still coughing up extra cash on every purchase. What's the trick?

Well take heart. If the big boys can do it, you can too, little guy. It's actually much easier than you think to muscle in on some of that sweet no tax action.

How? Start by reading our handy consumer guide to which tax haven is best for you.

Bank of Mauritius: Guideline on Credit Impairment Measurement and Income Recognition

Consistent with the requirements of International Accounting Standards and International Financial Reporting Standards, this Guideline sets out the conceptual framework for credit impairment measurement and income recognition as it applies to financial institutions in Mauritius.

The Guideline outlines prudential processes to identify weaknesses in credits granted, outlining benchmarks for identifying and providing for anticipated credit losses in a timely fashion.

The objective of this Guideline is to bring about a balance between the application of international accounting norms and prudential norms respecting credit impairment measurement and income recognition with a view to ensuring that financial institutions have adequate processes for determining allowance for credit losses, in a timely manner, and the carrying amounts of credit portfolio recoverable values.

The Guideline is not intended to deal with each and every provision of the current accounting standard pertaining to impairment and uncollectibility of financial assets, that is IAS 39 “Financial Instruments: Recognition and Measurement” or any subsequent International Financial Reporting Standard, in replacement of IAS 39. Financial institutions are advised to refer directly to the Standard for complete treatment of the subject. However, financial institutions are henceforth required to take on board the prudential norm on credit classification and credit impairment measurement in the preparation of their financial statements as described under section 8.

World Bank: Mauritius, Mozambique, and Seychelles Partner to Boost Trade and Regional Integration

The World Bank Board of Executive Directors approved today a total of US$29.9 million for Mauritius, Mozambique and Seychelles to support their efforts to collaborate and create regional reforms that will improve the trading environment within Africa. Today’s funding comprises a US$10 million International Development Association (IDA) credit to Mozambique  and two International Bank for Reconstruction and Development (IBRD) loans of US$14.9 million and US$5 million to Mauritius and Seychelles, respectively.

“The above countries recognize the perverse effects of barriers to trade, and they’ve agreed to collaborate in the implementation of reforms aimed at removing those barriers,” said Mark Lundell, World Bank Country Director for Mozambique, Mauritius and Seychelles. “This initiative is built on an increasing body of knowledge on the barriers that continue to restrict trade in goods and services in Africa and the economic benefits of deeper economic integration between African countries.”

The project will support the Accelerated Program for Economic Integration (APEI) that will help to improve the policy environment for trade in APEI countries. The program will focus on removing barriers to trade, promoting trade in services, and boosting resources to facilitate trade.  

“This innovative project supports the countries in jointly removing barriers to trade which impact heavily on poor people,” said Anabel Gonzalez, Senior Director for World Bank Group Trade and Competitiveness Global Practice. “The more rapid economic integration that this partnership between Mozambique, Mauritius, and Seychelles seeks to achieve will open up new regional markets, improve competitiveness and create jobs.”

Reducing non-tariff barriers that stifle regional markets in food products will increase incentives for production and increase food security in the region. Opening up regional trade in services in areas such as transport is expected to increase competition and drive down transport prices. Increased risk management at borders, and stronger coordination among border agencies will reduce dwell time, and hence costs at borders. Improved access to trade information through trade portals will reduce the scope for rent seeking and corruption related to trade which impinge particularly heavily on small traders, many of whom are women. Finally, reducing the costs to import inputs and export final goods will make companies more productive and competitive. It will increase market size for operators, allowing companies to benefit from economies of scale, and generate new opportunities for investment.

The APEI is an initiative of five countries and the financing approved today is part of a two-series to support the initiative. This first operation supports Mozambique, Mauritius and Seychelles while the second will go on to include Malawi and Zambia as well.  The initiative is expected to facilitate trade across the region and has the potential to facilitate the emergence of regional supply chains in the continent.

“This initiative supports African countries’ growing realization of the need to improve regional trade, which remains extremely fragmented in the continent,” reminded Ahmadou M. Ndiaye, World Bank Director for Regional Integration. “For example, completing border compliance procedures takes an exporter in the region 108 hours and $542 on average, compared with a global average of 64 hours and $389. This reminds us of the need to press ahead with trade reforms as supported by our own World Bank regional strategy for Africa.”

Mauritius: Vessels or boats above 12 metres overall to be fitted with Automatic Identification System

All vessels or boats above 12 metres of length overall and licensed to fish will soon have to be fitted with an Automatic Identification System (AIS) for better monitoring and sea patrol of vessels. The AIS is an automatic tracking system used on boats and vessels for identifying and locating vessels by communicating data electronically to a station through satellites.

In this context, the Minister of Ocean Economy, Marine Resources, Fisheries, Shipping and Outer Islands will promulgate the Fisheries and Marine Resources (Automatic Identification System) Regulations which will be effective as from 1 August 2016.

The following four categories of vessels are concerned and are being dealt with by different authorities. The categories are: 

• Vessels above 24 metres: Shipping Division of the Ministry of Ocean Economy, Marine Resources, Fisheries, Shipping and Outer Islands
• Pleasure Crafts: Ministry of Tourism and External communications and Tourism Authority
• Fishing vessels registered with the Fisheries Division of the Ministry of Ocean Economy, Marine Resources, Fisheries, Shipping and Outer Islands
• Foreign Vessels coming to Mauritius. 

As far as registered foreign fishing vessels are concerned, owners of these vessels will be informed that fitment of AIS on their vessels will be one of the conditions to fish in our waters. There will be an amendment to the Fishing license and an implementation period will be granted for fitment of same.

A new condition for installation of AIS system will be included in all new licenses issued to foreign vessels allowed to fish in our waters, to be implemented with immediate effect.

The system will be designed with a fool-proof system to prevent vessels from switching off their AIS on board. The National Coast Guard (NCG) will monitor movement of vessels though the coastal radar surveillance system and the NCG will be empowered to impose penalty on vessels in contravention to this condition. Penalty clause will be included when amending respective regulations.

Legislations falling under the purview of respective departments and ministries are being amended to cater for all the above requirements and make fitment of AIS mandatory as applicable.

Enhancing safety at sea

The Shipborne Automatic Identification System (AIS) as specified by International Maritime Organisation, is a ship and shore based broadcast system, operating in the VHF maritime band. It is capable of sending and receiving ship information such as identity, position, course, speed, ship particulars and cargo information to and from other ships, suitably equipped aircraft and shore. Fitment of AIS transponder is mandatory for vessels above 300 tons and very few vessels to which this requirement is not applicable have installed AIS transponder on a voluntary basis.

Each AIS station consists of one VHF transmitter, two VHF receivers, one VHF DSC receiver, a standard marine electronic communications link and sensor systems. Timing and positional information is derived from an integral Global Navigation Satellite System (GNSS) receiver.

 The benefits of the AIS are:

• All movements inward and outward of the lagoon can be actively and positively monitored by Coastal Surveillance Radar System and ships/boats on patrol.
• Movement to and from prohibited areas such as marine reserves and security sensitive areas namely marine roadstead, anchorages and Liquefied Petroleum Gas terminals can be policed.
• Better identification and distress attention in requirement of search and rescue.
• Early detection of ‘unidentified’ craft.
• Better monitoring of pleasure craft and tourist boats operating inshore

L’étrange traitement des Panama Papers par la presse…étrange similitude avec la presse mauricienne

Est-ce du journalisme ou un choix de cibles à abattre à partir de critères que nous ne connaissons pas ?…Par Ernest S. Hemingwe…

L’affaire des Panama Papers est traitée par certains journalistes comme une occasion de s’adonner à la haine des plus riche…

Plus le temps et les révélations des Panama Papers avancent, plus je me sens mal à l’aise avec cette histoire.

Minority Voice

Panama Papers: Ces paradis fiscaux de l'océan Indien qui attirent les sociétés offshore

A travers "Panama papers", 109 médias dans 76 pays, coordonnées par le Consortium international des journalistes d'investigation (ICIJ), ont eu accès à une masse d'informations inédites et révèlent au compte goutte le nom de personnalités ou d'institution qui ont recours à l'évasion fiscale. Coup de projecteur sur les trois paradis fiscaux de l'océan Indien : Maurice, les Seychelles et les Maldives.

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Bedell Trust announce management buyout

Bedell Trust, the leading award-winning provider of corporate and fiduciary services has announced today a management buyout (MBO) of its business for an undisclosed sum.  The MBO is backed by Inflexion, a leading independent private equity firm, which has over 15 years' experience of partnering with major businesses, including a number in the financial sector.  The completion of the deal is subject to regulatory approvals.

Bedell Trust management will retain full operational control of the business.

The deal will result in additional funding which will enable Bedell Trust to accelerate its significant growth plans and to continue to pursue market opportunities as they occur. Last September Bedell Trust acquired a majority stake in Singapore Trust Company (STC) as part of its strategic growth plan. The company will focus and expand its services offering and continue to invest heavily in its people, teams, infrastructure and evolving technology with the support and backing from Inflexion, whilst remaining committed to delivering the highest levels of client service.

Currently employing over 200 people, with a lower staff turnover than the majority of its competitors, Bedell Trust is well placed to build and develop its business lines across all of its international locations over the next five years.  Chief Executive Officer Nick Cawley, together with Michael Richardson as Executive Chairman, will continue to lead Bedell Trust through this exciting development alongside the existing management team, ensuring that clients continue to receive the outstanding levels of service that the company has a strong reputation for.

Bedell Trust Chief Executive Officer, Nick Cawley commented:

"Bedell Trust has doubled in size over the last five years and given our strategic aspirations and pipeline of opportunities we feel it is the right time to drive our growth through this partnership with Inflexion.  We believe that the team at Inflexion is uniquely placed as the most experienced and knowledgeable mid-market private equity firm in the financial services sector and we are excited about working with them to help us realise our aspirations and to continue to deliver strong growth."

Florencia Kassai, Partner at Inflexion said: 

"Bedell Trust has a fantastic reputation for quality and great client service. We are delighted to have the opportunity to partner with Bedell Trust's management team to help them continue to build a top-quality administration business supported by strong organic growth, complemented by strategic acquisitions. This partnership is based on the shared vision of building a business for the long-term, as rooted in Bedell Trust's DNA. Leveraging on Inflexion’s sector expertise, capital and ambition to accelerate its expansion, we see Bedell Trust emerging as the leading player in the trust and fund administration sector in the Channel Islands."

Seychelles: Financial Services Authority Press Release - Panama Papers.

The Financial Services Authority Seychelles (“FSA”) is aware of the “Panama Papers” revelations whereby it appears that certain information and documents of Mossack Fonseca, a Panama based law firm, were leaked to the German newspaper Süddeutsche Zeitung, and reported by the International Consortium of Investigative Journalists amongst other media outlets. In view that Mossack Fonseca & Co (Seychelles) Ltd is a company licensed and regulated by the FSA and forms part of the Mossack Fonseca Group, the FSA is concerned vis-à-vis the content of these publications, especially in view of the potential damage that these may cause to the reputation of the Seychelles.

Global Financial Centres Index 19

London, New York, Singapore and Hong Kong remain the four leading global financial centres. On a scale of 1,000 points, a lead of fewer than 20 points indicates relative parity. London remains just ahead of New York, climbing four points in the ratings to lead New York by eight points. New York (2nd) is now 37 points ahead of Singapore (3rd). Singapore is two points ahead of Hong Kong (4th).  

GFCI 19 provides profiles, rating and rankings for 86 financial centres, drawing on two separate sources of data - instrumental factors (external indices) and responses to an online survey. 105 factors have been used in GFCI 19. GFCI 19 uses 24,495 financial centre assessments completed by 2,520 financial services professionals. In addition to the 86 centres covered by the index, 16 'associate centres' are being researched and will join the index when they receive sufficient assessments.

London remains just ahead of New York to retain the number one position. Both cities gained four points in the ratings and London remains eight points ahead of New York. The GFCI is on a scale of 1,000 points and a lead of eight is fairly insignificant. We continue to believe that the two centres are complimentary rather than purely competitive. A number of respondents to our questionnaire have commented that the uncertainty surrounding the possible exit of the UK from the EU is having a negative impact on London’s competitiveness at present. 

London, New York, Singapore and Hong Kong remain the four leading global financial centres. Singapore has overtaken Hong Kong to become the third ranked centre by just two points. Tokyo, in fifth place, is 72 points behind London. The top financial centres of the world are all well developed, sophisticated and cosmopolitan cities in their own right. Successful people are attracted to successful cities and it is perhaps no surprise that these centres are ranked so high by financial services professionals.  

Western European centres remain mired in uncertainty. The leading centres in Europe are London, Zurich, Geneva, Luxembourg and Frankfurt. Of the 29 centres in this region, 12 centres rose in the ratings and 17 centres fell.  Rome, Madrid and Brussels, three centres closely associated with the Eurozone crisis have shown signs of recovery.  

Seven of the top ten Asia/Pacific centres see a fall in their ratings. Singapore, Tokyo and Beijing rose slightly in GFCI 19. Of the top ten centres in this region, Seoul and Sydney showed the largest falls. 

North American centres fortunes in GFCI 19 are mixed. Of the financial centres in the USA, New York, Washington DC and Los Angeles rose in the ratings. The three leading Canadian centres fell in the ratings after strong rises in the past year. Toronto remains the leading Canadian centre with Montreal in second and Vancouver in third. 

Latin America and the Caribbean suffer. All centres in this region, with the single exception of Mexico City fall sharply in GFCI 19. The offshore centres in the Caribbean (in common with the British Crown Dependencies listed under Western Europe) all suffered declines along with the Brazilian centres Sao Paulo and Rio de Janeiro.

Centres in the Middle East and Africa also fell in GFCI 19. Having made gains in GFCI 18 all centres in this region, except Casablanca, fell in the ratings. Dubai remains the leading centre in the region, followed by Tel Aviv and Abu Dhabi. Casablanca rose 11 places and is now fourth in the region.

The Economist explains: What are the Panama papers and why do they matter?

Benjamin Franklin had not heard of Mossack Fonseca when he observed “nothing can be said to be certain, except death and taxes,” and the Panama-based law firm might have changed his mind. Mossack is at the centre of a huge tax and money-laundering scandal, now coming to light thanks to the so-called “Panama papers”. What exactly are these papers and why do they matter?

The Economist

Mossack Fonseca Statement Regarding Recent Media Coverage

Recent media reports have portrayed an inaccurate view of the services that we provide and, despite our efforts to correct the record, misrepresented the nature of our work and its role in global financial markets.

These reports rely on supposition and stereotypes, and play on the public’s lack of familiarity with the work of firms like ours.

Statement Regarding Recent Media Coverage

Beach Shack Seafood Festival from the 4th to the 13th of March 2016

IFC Review: Disclosure Initiatives for Tax Purposes in Offshore Regimes – The New Double Standard

We have witnessed emboldened new initiatives geared towards compelling offshore financial centres to enter into radical arrangements that aim at full disclosure of information and the desecration of financial privacy. Offshore financial regimes have been challenged for some time now, given their successful role in equalising global revenues, often, though not exclusively, through efficient, innovative tax competitive regimes. However, the current transparency imperative is perhaps the greatest blow, especially the emerging concept of tax transparency, particularly when applied to the transnational sphere. The path to tax transparency has been through a concerted and continuous international effort to erode (some may say annihilate), the principle of financial confidentiality.

Professor Rose-Marie Belle Antoine examines disclosure initiatives for tax purposes in IFCs and calls for proportionality, balance and fairness in approaching these new tax transparency initiatives

Mrinal Roy: The Mess Is Getting Messier

Is the country in free-fall? Too many things seem to be falling apart and going asunder. Why is there this sickening feeling that the stewardship of the affairs of the country and the policy responses to resolve the many problems faced by the country, particular sectors and the people seems incoherent and muddled up?

The events of the past week have jolted the nation. It has once again brought to light that the constant rhetoric on good governance repeated like a leitmotiv on nearly every official occasion is not matched by deeds. The innocent are arrested on terrorist charges by the police before these are struck off in court two months later. Was it too much to expect an official apology for this gaffe and the profound anguish caused? Is it not also time to amend the law to cast in stone the sacrosanct principle of présomption d'innocence and to put an end to the arbitrary use of arrest and custody as instruments of humiliation?

Excerpts:

“Any politician professing to serve the country must be imbued with the highest values and code of ethics. They must show sound judgement at all times and ensure that their conduct and probity are unimpeachable. Why is it that such simple and sacrosanct rules of conduct, which are part of their contract of trust with the people, are so often breached by politicians and leaders? Are the altruism and selfless sense of service to the nation of yore, so potently evidenced during the fight for our rights and the freedom of the country, no longer part of today’s political ethos?”

“The three smart city projects of Mon Tresor, Cap Tamarin and Moka which have so far obtained their letter of intent from government (as well as some in the pipeline) are thus a mixed bag of commercial, residential, office, industrial, educational, medical or leisure hubs developed in most cases by sugar groups on thousands of acres of their sugar cane land assets. The financial gearing of these projects is anchored on their commercial component and their high-end residential estates which target foreign buyers. From information made public, these projects will entail some Rs 20 billion of investment over the next years till 2020 and beyond and are expected to generate some 3800 jobs in all. Is it not too little for such high investments outlays and potentially highly profitable ventures?”

Mauritius Times

FSC Mauritius issues Explanatory Notes to the Guidelines for Advertising and Marketing of Financial Products

FSC Mauritius issues Explanatory Notes to the Guidelines for Advertising and Marketing of Financial Products.

• Communiqué » Read More
• Guidelines for Advertising and Marketing of Financial Products (as amended 01 April 2016) » Read More
• Explanatory Notes to Guidelines for Advertising and Marketing of Financial Products » Read More

Mauritius: FSC issues Public Notices – Disqualification of Officers

• FSC issues Public Notice – Disqualification of Officer – Ms. Zeynub Soobratty
• FSC issues Public Notice – Disqualification of Officer – Mr. Arvind Babajee
• FSC issues Public Notice – Disqualification of Officer – Mr. Leonhard Pichler
• FSC issues Public Notice – Disqualification of Officer – Mr. Jorg Gunther Neumann

Mauritius - National Assembly: The Build Operate Transfer Projects Bill voted

The Government will adhere to the best international practices and guidelines and it is in this context that both the IMF and the World Bank were consulted in finalising the Build Operate Transfer Projects Bill and their technical assistance were sought. The Build Operate Transfer (BOT) Framework will be applicable only to projects where the undertaking including the assets to be created will be transferred to Government at the end of the BOT period.

This statement was made in the National Assembly on 29 March 2016 by the Prime Minister, Sir Anerood Jugnauth, in his summing-up speech on the Build Operate Transfer Projects Bill Procedures and guidelines will be issued by the Procurement Policy Office to facilitate operation of this Bill by the Contracting Authority and other stakeholders.

The Prime Minister highlighted the crucial importance of greater investment in economic and social development. He added that during recent years, total investment in the country has been declining, particularly private investment and that it is clear that we need to create the right environment to attract private investments. 

He further pointed out that public investment is unduly constrained by the public debt level and to accelerate the growth momentum and employment creation, we will have to remove barriers to investment in public infrastructure. This explains the urgency for introducing the BOT Projects Bill, he added.

The Prime Minister underscored that Government is coming with this piece of legislation to ensure that local and international investors show interests in BOT Projects and participate fully in the building of expensive modern public infrastructure. By adopting a pragmatic approach, this legislation will be effective and result oriented. He expressed confidence that it will bring in the expected results.

Sir Anerood Jugnauth concluded by stating that the law has been formulated to make sure that all existing procedures and safeguards with respect to transparency and accountability are followed and even reinforced. He highlighted the following examples:

• First, it is mandatory to obtain the prior approval of the Central Procurement Board before any Request for Proposal relating to a BOT project can be issued;
• Second, the Request for Proposal must be publicly advertised;
• Third, all bids received will have to be opened in public;
• Fourth, the bids will have to be evaluated by the Central Procurement Board in accordance to its established rules and procedures;
• Fifth, the Central Procurement Board will make recommendations to the Contracting Authority on the best course of action, including the imperative of ensuring value for money; and
• Sixth, a copy of all BOT agreements will be tabled before the National Assembly.

Under this new legislation, it will be mandatory for Ministries to table copies of BOT Agreements in the National Assembly.

The Build Operate Transfer Projects Bill provides for a legal framework for the execution of public sector projects to be undertaken under Build Operate Transfer (BOT) agreements.

These agreements will make provision to grant rights to a private party to, among others, build, set up, own, operate, rent, lease and transfer the undertaking to the contracting authority after a defined period of time.

The Bill also provides for the setting up of a BOT Projects Unit within the Procurement Policy Office, and for BOT agreements to be laid before the National Assembly.