IEA releases report on financial services and the benefits they bring to all

The much-maligned financial services industry is a crucial part of everyday life. Contrary to popular misconceptions, its greatest benefits are felt by the less-well-off and middle classes. The economic function of the financial services industry is to reduce transaction costs for saving, for protecting against major risks, providing for an income in old age, acquiring capital to start a business and for making every day transactions. The costs of these things for most people would be prohibitive without the modern financial services industry.

A new report from the Institute of Economic Affairs debunks the commonly held idea that financial services are “socially useless”, and demonstrates that, despite having intangible outputs, the sector is vital to consumers regardless of income. Moreover, the oft-proposed remedy – increased statutory regulation – may heighten rather than mitigate the exposure of taxpayers and households to recessions and speculative bubbles.

The financial services industry is one of the UK’s most productive and the increased regulation of the sector has contributed to the decline in productivity. Half of the UK’s financial services output is exported, thus helping to finance the import of (mainly) manufactured goods.

Key benefits of financial services:

• The financial sector is a pro-poor industry, making possible everyday activities that in the past were only possible for the wealthiest. Financial institutions exist to reduce the cost to businesses of raising capital and the costs to individuals of saving and protecting against risk. Thanks to the existence of financial markets, households can spread risk across a range of institutions and a range of potential borrowers. Reducing the transaction costs of financial activity enables people to spend their time more productively.
• The sector embraces innovation. Financial institutions are continually evolving. For example, peer-to-peer lending networks now enable households to diversify their risk while omitting the intermediary partly or entirely.
• The UK has a huge trade surplus in the financial sector, equivalent to 3 per cent of national income. Even if the financial services output of the economy was socially useless, the fact that much is exported – providing the income to buy other goods and services – significantly reduces the power of that argument.

Debunking criticisms of the sector:

• Inequality. The much-cited literature linking financial growth and adverse economic outcomes is simply too crude to warrant drawing clear policy conclusions. Studies linking financialisation with inequality are similarly ambiguous: the top ten countries for their share of finance in GDP are a mixture of high-, medium- and low-inequality countries. Three of the OECD’s eight most equal countries are in the top ten of countries with the largest financial sector as a proportion of national income.
• High salaries. Compensation in the financial sector, at 6.9 per cent of all compensation, is in line with the sector’s contribution to the economy (7.2 per cent of gross added value).
• Short termism could be tackled by removing the regulations that encourage rapid turnover of shares and short-term metrics in management reporting. Corporate governance codes are overly focused on information provision which may encourage managers to pursue short-term objectives contrary to the interests of shareholders.
• Duping consumers. It is often argued that consumers are harmed through mis-selling, which is the justification behind a large amount of consumer finance regulation. Yet we cannot know in advance whether regulation will improve a market. The perfectly informed regulator is as much of a fiction as the perfectly informed consumer. The FCA’S recent cap on payday loans costs shrank the market by between three and five times more than the regulator expected. Markets are not perfect, but regulation is often a very poor substitute.

Commenting on the report, Professor Philip Booth, Senior Academic Fellow at the Institute of Economic Affairs, said:

“Animosity towards the business of finance is ancient and persistent, but just because its outputs are intangible should not take away from its inherent value. Over-regulation can increase risk in the financial sector as well as reduce competition.

“The Government itself should recognise the unintended consequences of legislation and take a more patient approach. A more stable policy framework would help long-term investment and reduce short-termism.”

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Taking the Mauritius Route: Of Big Businesses & Crony Capitalism

In their meticulously researched book ‘Thin Dividing Line’, Paranjoy Guha Thakurta and Shinzani Jain highlight the role that Mauritius plays in providing tax shelter for ultra rich Indians and the illicit financial flows in the global context.

The Quint

Groupe BPCE announces the signature of an agreement providing for the divestment of 100% of Banque des Mascareignes to Groupe Banque Centrale Populaire and Groupe Sipromad.

The agreement concerns the divestment by BPCE International of Banque des Mascareignes, an establishment based in Mauritius, and its Madagascan subsidiary (Banque des Mascareignes Madagascar), to the Moroccan banking group, Banque Centrale Populaire, and its strategic partner in the region, Sipromad, a diversified Madagascan group and a historic shareholder in the Madagascan subsidiary.

Completion of the divestment remains subject to the usual condition precedents for this type of transaction, and particularly the agreement of the regulatory authorities in Mauritius, Madagascar and Morocco, and should take place by the end of the first half of 2018.

This transaction is part of Groupe BPCE’s strategy of refocusing in priority growth markets and regions.

Press Release

Le gouvernement évoque la création d’un secteur bancaire offshore

L’express du 20 février 1984 annonce que le gouvernement veut se pencher sérieusement sur le dossier de l’offshore banking. A cette époque, c’est Vishnu Lutchmeenaraidoo qui officie au ministère des Finances dans le gouvernement  (MSM-PTr-PMSD) dirigé par sir Anerood Jugnauth. Le sujet avait déjà été évoqué vers la fin des années 70, dit le journal.  La mise à jour du dossier est confiée aux économistes du ministère du Plan et du Développement, dirigé alors par Rundheersing Bheenick. L’objectif premier du développement de l’offshore est alors de «permettre aux jeunes diplômés chômeurs de trouver un travail qui leur convient.» Il est aussi dit que la création du secteur offshore permettra au pays de disposer des dernières technologies de communication. 

L'Express

BIS - Sound Practices: implications of fintech developments for banks and bank supervisors

The Basel Committee on Banking Supervision today published its Sound Practices on the implications of fintech developments for banks and bank supervisors. The paper assesses how technology-driven innovation in financial services, or "fintech", may affect the banking industry and the activities of supervisors in the near to medium term.

The paper is based on the analysis of various potential future scenarios and draws on surveys with bank supervisors. Five stylised scenarios describing the potential impact of fintech on banks were identified as part of an industry-wide scenario analysis:

• The better bank: modernisation and digitisation of incumbent players
• The new bank: replacement of incumbents by challenger banks
• The distributed bank: fragmentation of financial services among specialised fintech firms and incumbent banks
• The relegated bank: incumbent banks become commoditised service providers and customer relationships are owned by new intermediaries
• The disintermediated bank: banks have become irrelevant as customers interact directly with individual financial service providers
• The paper focuses on three technological developments (big data, distributed ledger technology and cloud computing) and three fintech business models (innovative payment services, lending platforms and neo-banks).

Against this backdrop, current observations suggest that although the banking industry has undergone multiple innovations in the past, the rapid adoption of enabling technologies and emergence of new business models pose an increasing challenge to incumbent banks in almost all the banking industry scenarios considered.

In addition, the Committee surveyed its members' frameworks and practices in relation to fintech matters, and carried out a public consultation in August 2017.

Building on the supportive feedback, the Committee has further specified the nature and scope of its contribution and has enhanced its 10 key implications and considerations on the following supervisory issues:

1. the overarching need to ensure safety and soundness and high compliance standards without inhibiting beneficial innovation in the banking sector
2. the key risks for banks related to fintech developments, including strategic/profitability risks, operational, cyber- and compliance risks
3. the implications for banks of the use of innovative enabling technologies
4. the implications for banks of the growing use of third parties, via outsourcing and/or partnerships
5. cross-sectoral cooperation between bank supervisors and other relevant authorities
6. international cooperation between bank supervisors
7. adaptation of the supervisory skill set
8. potential opportunities for supervisors to use innovative technologies ("suptech")
9. relevance of existing regulatory frameworks for new innovative business models
10. key features of regulatory initiatives set up to facilitate fintech innovation

Cryptocurrencies: The new frontier

The Financial Services Commission of Mauritius has decided instead to take the bull by the horn. It has decided that it would like to develop a market in these exotic assets and have appointed a committee to set up regulatory structures.

Financial Express

La FINMA publie un guide pratique sur les ICO

Dans le contexte d’une hausse significative des initial coin offerings (ICO) effectués ou prévus en Suisse, la FINMA s’est vue et se voit encore confrontée à de nombreuses questions d’assujettissement. Un ICO permet d’effectuer une levée publique de capitaux sous forme numérique, à des fins entrepreneuriales, sur la base de la technologie de la blockchain. Dans le guide pratique publié aujourd’hui, la FINMA précise en complément de la communication sur la surveillance 04/2017 les modalité selon lesquelles elle traite les demandes d’assujettissement des organisateurs d’ICO, eu égard à une situation juridique sujette à interprétation. La FINMA considère que cette transparence concernant sa méthodologie est importante et appropriée, compte tenu de la dynamique particulière du marché et de la forte demande dans ce domaine.

La prise en compte des particularités de chaque cas est déterminante

Le droit régissant les marchés financiers n’est pas applicable à tous les ICO et l’obligation d’assujettissement n’est pas systématique, car la définition des ICO est extrêmement variable. Les caractéristiques de chaque cas particulier doivent toujours être prises en compte. Ainsi que l’indiquait déjà la communication sur la surveillance 04/2017, le droit général régissant les marchés financiers peut s'appliquer à différents éléments des ICO. Il n’y a, en revanche, pas encore d’exigences réglementaires spécifiques concernant les ICO. Actuellement, il n’y a pas non plus de jurisprudence applicable ni de doctrine juridique uniforme.

Les principes de la FINMA se concentrent sur la fonctionnalité et la transmissibilité des jetons

Dans son évaluation prudentielle des ICO, la FINMA suit une approche qui se focalise sur la fonction économique et le but des jetons, autrement dit des unités basées sur la blockchain qui sont émises par l’organisateur de l’ICO. La classification des jetons et la question de savoir si ces jetons sont négociables ou transmissibles avant même le début de l’ICO sont essentielles. Il n’existe pas actuellement en Suisse ni ailleurs dans le monde de classification universellement reconnue des jetons. D’un point de vue fonctionnel, la FINMA distingue trois types de jetons, des formes mixtes étant également possibles :

• Les jetons de paiement sont assimilables à des « cryptomonnaies » pures, sans être liés à d’autres fonctionnalités ni projets. Dans certains cas, les jetons ne peuvent développer la fonctionnalité nécessaire et leur acceptation comme moyen de paiement qu’au fil du temps.
• Les jetons d’utilité sont des jetons qui doivent donner accès à un usage ou à un service numériques.
• Les jetons d’investissement représentent des valeurs patrimoniales telles que des parts dans des valeurs réelles, des entreprises, des revenus ou un droit à des dividendes ou des intérêts. Sous l’angle de sa fonction économique, le jeton doit être considéré comme une action, une obligation ou un instrument financier dérivé.

Focalisation sur les règles relatives au blanchiment d’argent et au négoce de valeurs mobilières

Lors de son analyse, la FINMA a constaté que les lois régissant les marchés financiers s'appliquent aux ICO le plus souvent dans les domaines de la lutte contre le blanchiment d’argent et du négoce de valeurs mobilières. Les applications qui nécessiteraient un assujettissement à la loi sur les banques ou à la loi sur les placements collectifs sont plus rares.

La loi sur le blanchiment d’argent prévoit pour les intermédiaires financiers des obligations telles que l’identification des ayants droit économiques. Cette loi a pour but de protéger le système financier du blanchiment d’argent ou du financement du terrorisme. Les risques de blanchiment d’argent sont particulièrement élevés dans un système organisé de manière décentralisée sur la base de la blockchain, dans lequel les valeurs patrimoniales peuvent être transmises de façon anonyme.

Les règles du négoce de valeurs mobilières ont pour but de garantir aux acteurs du marché la possibilité de prendre leurs décisions de placement en actions ou en obligations sur la base d’informations minimales fiables. Il s’agit en outre de s’assurer que le négoce peut être réalisé de manière équitable, fiable et avec une formation des prix efficiente.

Sur la base des critères de fonctionnalité et de transmissibilité évoqués, la FINMA parvient à l’évaluation prudentielle suivante des ICO (cf. également le graphique dans le guide pratique, pages 7 et 8) :

• ICO de paiement : la FINMA considère comme clairement soumis aux dispositions en matière de blanchiment d’argent les ICO dont les jetons remplissent la fonction économique de moyen de paiement et sont déjà transmissibles. La FINMA ne traitera cependant pas ces jetons comme des valeurs mobilières.
• ICO d’utilité : les jetons d'utilité ne sont pas considérés comme des valeurs mobilières s'ils confèrent uniquement un droit d’accès à un usage ou à un service numériques et qu'ils sont utilisables dans ce sens à la date d’émission. Dans tous les cas où la fonction économique en tant qu'investissement existe également (ou seule cette fonction existe), la FINMA les traite comme des valeurs mobilières (comme des jetons d'investissement).
• ICO d’investissement : la FINMA considère les jetons d’investissement comme des valeurs mobilières avec les conséquences correspondantes sur leur négoce dans l’optique du droit des marchés financiers. En règle générale, cette approche implique également pour les ICO des obligations correspondantes selon le Code des obligations (par ex. obligations d’établir des prospectus).

Les ICO peuvent également constituer des formes mixtes de ces catégories. Un assujettissement à la loi sur le blanchiment d’argent est par exemple possible lorsqu’un jeton d’utilité est également utilisable de manière généralisée comme moyen de paiement ou doit pouvoir être utilisé comme tel.

La technologie de la blockchain offre un potentiel d’innovation

La FINMA se réserve le droit de publier dans une circulaire l’interprétation des lois régissant les marchés financiers en vigueur concernant les ICO dans des cas concrets, après un approfondissement supplémentaire de sa pratique en matière de surveillance.

La FINMA reconnaît le potentiel d’innovation de la technologie de la blockchain. Elle soutient par conséquent le groupe de travail sur la technologie « blockchain » et les ICOs de la Confédération dédié à ce thème et y participe. La clarté sur les conditions-cadres du droit civil sera une condition déterminante pour l’établissement durable et réussi de cette technologie en Suisse.

Mark Branson, directeur de la FINMA, souligne que « La technologie de la blockchain offre un potentiel d’innovation pour les marchés financiers et bien au-delà. Les projets de blockchain qui fonctionnent de manière comparable aux activités soumises à autorisation ne doivent cependant pas contourner le cadre réglementaire éprouvé. Notre approche équilibrée du traitement des projets et des demandes d'ICO permet aux innovateurs sérieux de trouver leurs marques dans le contexte réglementaire et de lancer leurs projets de manière à respecter les lois existantes, permettant ainsi de protéger les investisseurs et l’intégrité de la place financière. »

Indications pour les investisseurs

La FINMA a déjà attiré l’attention, à plusieurs reprises, sur les risques des ICO pour les investisseurs. Les prix des jetons acquis dans le cadre d’un ICO sont généralement très volatils. De nombreux ICO n’en étant qu’à leurs débuts, il subsiste beaucoup d’incertitudes en lien avec les projets d’ICO à financer et à réaliser. Des incertitudes subsistent par ailleurs dans le droit en vigueur quant à la possibilité de transmettre et de faire valoir, du point de vue du droit civil, des droits annoncés ou susceptibles d’être en relation avec des jetons.

Les clarifications en matière d’ICO se poursuivent

Comme annoncé en septembre 2017, la FINMA procède à des clarifications dans plusieurs cas d’ICO. Si la FINMA dispose d’indices selon lesquels des modèles d’affaires ICO enfreignent le droit de la surveillance, permettent de contourner les lois sur la surveillance ou ont même été mis en place dans une intention frauduleuse, elle engagera des procédures d’enforcement.

Guide pratique ICO

FINMA publishes ICO guidelines

FINMA has seen a sharp increase in the number of initial coin offerings (ICOs) planned or executed in Switzerland and a corresponding increase in the number of enquiries about the applicability of regulation. ICOs are a digital blockchain-based form of public fund-raising for entrepreneurial purposes. Given a legal and regulatory framework with partially unclear applicability, FINMA is today publishing guidelines, which complement its earlier FINMA Guidance 04/2017, setting out how it intends to treat enquiries from ICO organisers. Creating transparency at this time is important given the dynamic market and the high level of demand.

Each case must be decided on its individual merits

Financial market law and regulation are not applicable to all ICOs. Depending on the manner in which ICOs are designed, they may not in all cases be subject to regulatory requirements. Circumstances must be considered on a case-by-case basis. As set out in FINMA Guidance 04/2017, there are several areas in which ICOs are potentially impacted by financial market regulation. At present, there is no ICO-specific regulation, nor is there relevant case law or consistent legal doctrine.

FINMA's principles focus on the function and transferability of tokens

In assessing ICOs, FINMA will focus on the economic function and purpose of the tokens (i.e. the blockchain-based units) issued by the ICO organiser. The key factors are the underlying purpose of the tokens and whether they are already tradeable or transferable. At present, there is no generally recognised terminology for the classification of tokens either in Switzerland or internationally. FINMA categorises tokens into three types, but hybrid forms are possible:

• Payment tokens are synonymous with cryptocurrencies and have no further functions or links to other development projects. Tokens may in some cases only develop the necessary functionality and become accepted as a means of payment over a period of time.
• Utility tokens are tokens which are intended to provide digital access to an application or service.
• Asset tokens represent assets such as participations in real physical underlyings, companies, or earnings streams, or an entitlement to dividends or interest payments. In terms of their economic function, the tokens are analogous to equities, bonds or derivatives.

Focus on anti-money laundering and securities regulation

FINMA's analysis indicates that money laundering and securities regulation are the most relevant to ICOs. Projects which would fall under the Banking Act (governing deposit-taking) or the Collective Investment Schemes Act (governing investment fund products) are not typical.

The Anti-Money Laundering Act contains requirements for financial intermediaries including, for example, the need to establish the identity of beneficial owners. The law aims to protect the financial system against the risks of money laundering and the financing of terrorism. Money laundering risks are especially high in a decentralised blockchain-based system, in which assets can be transferred anonymously and without any regulated intermediaries.

Securities regulation is intended to ensure that market participants can base their decisions about investments on a reliable minimum set of information. Moreover, trading should be fair, reliable and offer efficient price formation.

On the basis of the above-mentioned criteria (function and transferability), FINMA will handle ICO enquiries as follows (see also the diagram in the Guidelines, page 8):

• Payment ICOs: For ICOs where the token is intended to function as a means of payment and can already be transferred, FINMA will require compliance with anti-money laundering regulations. FINMA will not, however, treat such tokens as securities.
• Utility ICOs: These tokens do not qualify as securities only if their sole purpose is to confer digital access rights to an application or service and if the utility token can already be used in this way at the point of issue. If a utility token functions solely or partially as an investment in economic terms, FINMA will treat such tokens as securities (i.e. in the same way as asset tokens).
• Asset ICOs: FINMA regards asset tokens as securities, which means that there are securities law requirements for trading in such tokens, as well as civil law requirements under the Swiss Code of Obligations (e.g. prospectus requirements).

ICOs can also exist in hybrid forms of the above categories. For example, anti-money laundering regulation would apply to utility tokens that can also be widely used as a means of payment or are intended to be used as such.

Blockchain technology has innovative potential

Following further consolidation of this supervisory practice, FINMA may in future decide to publish its interpretation in the form of a circular.

FINMA recognises the innovative potential of blockchain technology and therefore supports the federal government's Blockchain/ICO Working Group in which it is participating. Clarity about the underlying civil law framework will be a decisive factor in establishing this technology sustainably and successfully in Switzerland.

FINMA CEO, Mark Branson comments: "The application of blockchain technology has innovative potential within and far beyond the financial markets. However, blockchain-based projects conducted analogously to regulated activities cannot simply circumvent the tried and tested regulatory framework. Our balanced approach to handling ICO projects and enquiries allows legitimate innovators to navigate the regulatory landscape and so launch their projects in a way consistent with our laws protecting investors and the integrity of the financial system."

Information for investors

FINMA has several times drawn attention to the risks that ICOs can pose for investors. Tokens acquired in the context of an ICO are likely to be subject to high price volatility. Since many ICO projects are at an early stage of development, they are subject to numerous uncertainties. Furthermore, it is uncertain under current civil law whether contracts executed via blockchain technology are legally binding.

Investigations into ICOs will continue

As announced in September 2017, FINMA is conducting investigations into a number of cases involving ICOs. If FINMA becomes aware that ICO business models have breached supervisory law, were intended to circumvent regulation, or were fraudulent in their intent, it will launch enforcement proceedings. 

ICO Guidelines

India - Authority for Advance Rulings (AAR): ‘AB’ Mauritius

In extraordinary and exceptional circumstances, as noticed in the case of ‘AB’ Mauritius, AAR will interfere with the benefits available to an applicant, under a DTAC between two sovereign states.

AAR Ruling

BBC: The Great British Money Laundering Service

New transparency rules designed to reveal the true owners of British companies are being flouted. Billions of pounds of dirty money is alleged to have passed through opaque UK companies in recent years.

How does this square with UK's international reputation for financial probity? A British company at a British address carries an air of legitimacy. But, in reality, some corporate vehicles are being used to fill the pockets of corrupt politicians and deprive people living in poverty of much-needed public funds.

In this edition of File on 4, Tim Whewell investigates the scams designed to circumvent new regulations and untangles the global networks behind the Great British Money Laundering Service.

How Mauritian lender SBM toppled top Kenyan banks in a year

How does one bank enter a market with 0.4 per cent market share and take only one year to grow into a top-tier bank with 95 branches and assets, only second to Kenya Commercial Bank (KCB)?

The Standard

FSC Mauritius issues Circular Letter with respect to Tax Holidays

This Circular Letter applies to the following licensees:

1. Global Headquarters Administration;
2. Global Treasury Activities;
3. Overseas Family Office (Single);
4.  Overseas Family Office (Multiple);
5. Investment Banking;
6. Global Legal Advisory Services; and
7. Captive Insurance.

Ocorian to acquire ABAX, a market leading provider of global business services in Mauritius.

Ocorian, a global provider of specialist financial services, announced today that it has entered into a definitive agreement to purchase ABAX, an integrated advisory, corporate and business services provider based in Mauritius.

The acquisition will significantly extend Ocorian’s service range and delivery capability into Africa, Asia and the Middle East and swell its international team to 700+ staff – including additional representation in Côte d'Ivoire, Dubai, Mauritius, Singapore and South Africa.

In turn, ABAX clients will now be able to access a much wider range of specialist alternative investment, corporate and private client services, across both onshore and offshore locations in Europe and North America, including: Channel Islands (Jersey and Guernsey), Cayman Islands, Ireland, Luxembourg, Netherlands, Singapore, UK and the USA. 

Expected to close before the end of March 2018, the transaction realises the next stage of an ambitious international growth strategy for Ocorian, following the management buyout and successful rebrand of Bedell Trust in 2016. All 275 staff currently employed by ABAX will join Ocorian.

Commenting on the acquisition Nick Cawley, CEO of Ocorian, said:

“This transaction reflects the sustained expansion and diversification of Ocorian's newly defined business and our commitment to growth in leading jurisdictions. It will further strengthen our position as a leading global financial services provider and give enhanced range and scope across both Africa and Asia.”

Richard Arlove, CEO of ABAX added:

“Our priority for this transaction was to find a partner that would truly help us to realise our growth ambitions of being a leading provider of integrated advisory, corporate and business services for Africa while consolidating our offering for Asia. This transaction allows us to create further value for clients through synergies with an increased number of international jurisdictions, particularly within Europe and North America.”

Mauritius: Regulatory Committee on Fintech and Innovation-driven Financial Services to be set up

A Regulatory Committee on Fintech and Innovation-driven Financial Services will be set up to assist in paving the way for appropriate regulatory frameworks for encouraging and supporting the development of Fintech in Mauritius.

The Committee which will comprise, inter alia, Lord Meghnad Desai and Lord St John of Bletso of the House of Lords, will assess the current regulatory set up with respect to Fintech and Innovation-driven Financial Services Regulations in Mauritius and make recommendations on the need to introduce new sets of regulations for Fintech and lnnovation.

It will also identify priority areas within the regulatory space of Fintech activities and advise on the drafting of regulations and guidelines by segment of activities, and how Mauritius needs to adapt itself for the benefit of its financial sector.

Mauritius: A gateway into Africa

Are you thinking of investing in Africa? Are you looking for a destination to park your cash? Consider Mauritius as your gateway into Africa. A panel of experts discuss this country as an emerging International Financial Centre for Africa and more.

Africa Energy Forum to be hosted in Mauritius for 20th anniversary celebrations

The annual Africa Energy Forum will celebrate its 20th birthday by inviting the international energy community to Mauritius for the four day conference and private exhibition. Two hotels will be reserved for the duration of the conference with the AEF Village to be purposely built on the grounds of a football pitch in the South West of the island.

The decision to move the Forum to Mauritius from its usual location in Europe came about to celebrate the achievements of the AEF community on ‘home turf.’  Strategically located in the Indian Ocean, Mauritius is ideally located for doing business in Africa, as well as being internationally recognised for its governance framework, ease of doing business and investor-friendly environment.

The theme for this year’s Forum is ‘Reflections on the last 20 years.’ Key figures who have shaped Africa’s energy sector will be invited back to share their knowledge, experiences and future forecasts with attendees.

The World Bank and University of California, Berkeley will collaborate with organisers EnergyNet to record an action plan during the conference with objectives for the next 20 years, to lay the foundations for future generations of energy users in Africa.

Agenda highlights include the Ministerial Opening Ceremony with the overarching theme ‘Building a Coherent Strategy for the Next 20 Years,’ country focus sessions exploring the unique energy environments of countries across the continent, Africa’s Gas to Power Future – An Update on Current Projects, and an in depth look at the success rate of initiatives and tools developed by the likes of Power Africa, KfW & IFC over the last 2 decades.

Awards of Recognition are to be presented to individuals who have made a significant contribution to the sector over the 20 years in the ‘Africa Energy Forum Hall of Fame.’

AEF welcomed almost 2,000 participants to Denmark in 2017 from 77 countries – 33 of those being African. A number of deals took place including announcements from USTDA, World Bank and InfraCo Africa.

Outrigger Mauritius Beach Resort launches rustic garden-to-table dining experience

The Outrigger Mauritius Beach Resort Executive Chef Geert-Jan Vaartjes has revealed an innovative Saturday evening garden-to-table dining experience at the resort, located in the south of the island.

Guests arrive around 6 p.m. at The Plantation Club colonial-style restaurant on the resort grounds. After they enjoy a welcome cocktail, the resort’s gardener shows them the vegetable garden while explaining the various herbs. Taking advice from the gardener, guests pick an assortment as ingredients for their dinner.

The guests then sit back on the simple wooden tables outdoors and enjoy impromptu Mauritian creole light bites, as Chef goes to work using traditional utensils such as old-style cauldrons, pans (called tawa) and wooden ladles. The meal is prepared on a wood fire.

“There is no fixed menu,” says Vaartjes. “But chances are we will create a vibrant creole garden salad for starters and then a chicken or fish curry main course. It depends on our guests’ curiosity, passion and culinary interests. Rest assured, it will be delicious because it’s from the heart – and the garden.”

Around the allotment beside The Plantation Club Vaartjes says that freshly picked vegetables and herbs such as lady fingers, beetroot and sorrel are his favorites. The rustic dinner will be served with faratha flat bread and local condiments such as coconut chutney, dried shrimp chutney, chillies and local achaar (pickles).

As it’s Mauritius, to accompany the experience, guests will be served barbecued banana marinated in local rum.

Drinks are served in a copper mug in the outdoor garden setting with log furniture. Old style lamps are used for light as the twilight thickens. To add to the atmosphere, the hosts are dressed in local creole and Sega attire. A singer-guitar player entertains guests throughout.

The garden-to-table experience at The Plantation Club costs 1,800 MUR (US$52) per person and 900 MUR (US$26) for children under 12.

Creole Jazz Brunch – Now on Sundays

The famous Creole Jazz Brunch at the Outrigger will now take place on the first Sunday of every month. Sumptuous Creole and international flavors are available at the colonial-style Plantation Club for MUR2,400 (US$69) per person from 11:30 a.m. to 4 p.m. For an extra MUR500 (US$14) guests can add free-flow selected wines and local draft beer – or add MUR1,100 (US$32) for free-flow Champagne, wine and beer.

Visitors can make the most of the resort’s facilities during the Sunday brunch visit. Adult visitors can use the resort’s beach, pool and other complimentary facilities until 7 p.m. and children (3-12) have access to the Coral Kids Club. For the brunch and the hotel facilities, infants are free, children 4-12 pay half; and there is a 30% discount for teenagers.

Thinking Out of the Box: Bentos to Go

The chefs at the Outrigger have a new innovation: Bento lunch boxes for guests to take away on day trips, to the beach, to enjoy on their balcony, or as private dining in their rooms.

There are four Bento options: Asian, Mediterranean, Garden, or Plantation Club (seafood). Prices range MUR1050-1450 (US$30-42).

I Scream Ice Cream

The Outrigger has also launched its Ice Candy Shop featuring premium ice creams, sorbets and lollipops. The flavours include Gin & Tonic sorbet and beer-based ice cream for adults. There’s also pistachio-wasabi, passion fruit, salted caramel and Toblerone ice cream, and much more, for all ages. The Ice Candy Shop is next to the Edgewater restaurant and is open from 11:30 a.m. to 6 p.m. daily.

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Kroll: Businesses Report All-Time High Levels Of Fraud, Cyber, And Security Incidents During 2017

Fraud, cyber, and security risks are at an all-time high, according to senior corporate executives surveyed worldwide for the 2017/18 Kroll Annual Global Fraud & Risk Report.

The proportion of executives reporting that their companies fell victim to at least one instance of fraud over the past 12 months increased to 84%, from 82% in the previous survey. Levels of reported fraud have steadily risen every year since 2012, when the reported occurrence was just 61%.

An even greater percentage of executives surveyed (86%) said their companies had experienced a cyber incident or information theft, loss, or attack over the past 12 months, slightly up from 85% in 2016.  Seven in 10 respondents (70%) reported the occurrence of at least one security incident during the past year, compared to 68% in the previous survey.

The Kroll Report reveals that respondents are experiencing a heightened sense of vulnerability to fraud, cyber, and security risks, with information-related risks now being the area of greatest concern. As criminals and other threat actors continue to find new ways to monetize confidential data, including personal data, data assets are becoming increasingly valuable and attractive targets.   

Confidential information subject to increasing threats

For the first time in the Kroll Report's 10-year history, information theft, loss, or attack was the most prevalent type of fraud experienced, cited by 29% of respondents, up 5 percentage points from the previous year. This edged out theft of physical assets or stock, long the most common type of organizational loss, which this year was the second most frequently cited incident (27%).

Cyber attacks represent one of the most persistent threats to confidential information. In fact, the reported level of occurrence for every type of cyber incident included in the survey increased in the last 12 months.

In the year when major viruses such as WannaCry and Petya hit across the world, nearly four in 10 (36%) executives surveyed said their companies had been impacted by a virus or worm attack, an increase of 3 percentage points year-over-year. One in three (33%) said they had suffered an email-based phishing attack (up 7 percentage points from the last report), 27% had suffered a data breach, and 25% were affected by data deletion. Beyond digital threats, information was highly susceptible to loss through other means: 29% of executives surveyed said equipment with sensitive data was stolen, while 27% said equipment was "lost."

Physical theft or loss of intellectual property (IP) was by far the most prevalent type of security incident. Of those executives whose company experienced a security incident this past year, 41% said their organizations fell victim to IP theft or loss.

Top three types of incidents reported by survey respondents (by category)
	Fraud	Cyber	Security
1.	Information theft, loss, or attack (29%)	Virus/worm attack (36%)	Physical theft or loss of intellectual property (41%)
2.	Theft of physical assets or stock (27%)	Email-based phishing attack (33%)	Environmental risk (including damage caused by natural disasters such as hurricanes, tornadoes, floods, earthquakes, etc.) (28%)
3.	Management conflict of interest (26%)	Data breach resulting in loss of customer or employee data, IP/trade secrets/R&D (27%)	Workplace violence (23%)

Jason Smolanoff, Senior Managing Director and Global Cyber Security Practice Leader for Kroll, explained: "In a digitized world with growing levels of data creation, collection, and reliance for businesses, information assets have become increasingly valuable and exposed to threats. Exacerbating the challenge of safeguarding data is that criminals and other threat actors are continually developing new ways to monetize confidential information, including personal data.

"People instinctively think about data being targeted by cyber attacks, but not all threats to information are confined to the digital realm. There is a convergence between physical and digital threats, with issues arising from equipment with sensitive data being stolen or lost, for example, or employees with access to highly sensitive information accidentally or intentionally causing a breach."

Costly and wide-ranging repercussions

In addition to reporting extremely high incidence levels, respondents indicated that the repercussions of fraud, cyber, and security events were costly and wide-ranging, affecting employees, customers, as well as the organization's reputation and bottom line.

Employee privacy, safety, or morale was negatively affected by incidents according to 82% of respondents whose companies had experienced fraud, 81% of those that reported a cyber incident, and 80% of executives whose companies endured a security event.

Approximately three quarters of respondents stated that customers had been negatively impacted by all three risk factors – 76% by a fraud incident, 74% by a cyber incident, and 74% by a security incident. Almost two-thirds said that the impacted company's reputation had suffered due to a fraud (65%), cyber (67%), or security (66%) incident.

Businesses suffered significant economic damage from fraud, with nearly one in four respondents (23%) reporting losses of 7% or more of company revenues, an extremely worrisome increase from the prior year when only 3% of respondents reported this magnitude of financial impact.

Executives feeling increasingly vulnerable to risks

The Kroll Report further reveals mounting concerns among surveyed executives about their companies' potential exposure to fraud, cyber, and security risks.

In particular, information-related risks overwhelmingly represent the top worries for respondents across every risk category – fraud, cyber, and security.  Almost six in 10 (57%) respondents believe their companies are highly or somewhat vulnerable to information theft, loss, or attack, up 6 percentage points from the previous survey.

With reported cyber incidents at an all-time high and perpetrators seeming to develop new methods of attack virtually every day, at least half of all executives surveyed are apprehensive about every type of cyber incident identified in the survey – with almost two-thirds (62%) especially wary of a virus or worm attack.

The proportion of respondents who said they feel highly or somewhat vulnerable to physical security threats also grew over the last year. In particular, 63% of respondents stated their companies could be particularly prone to physical theft or loss of IP, the greatest single concern.

Culprits inside and outside

Insiders and ex-employees continue to pose the greatest threat to companies around the world. Respondents revealed that fraud, cyber, and security incidents are often inside jobs perpetrated by members of management or current, former, or temporary/freelance employees.

Of those reporting a fraud incident, 81% cited one or more insiders as perpetrators; likewise, 58% of respondents who reported a cyber incident and 71% of those who experienced a security incident primarily identified insiders as the perpetrators.

Junior employees were the most commonly named perpetrators of fraud incidents (39%) and former employees were cited most frequently for security incidents (37%). However, for respondents who had experienced a cyber incident in the last 12 months, a random cyber-criminal or threat actor was the single most commonly named perpetrator (34%).

Imperative to mitigate risks

Nearly all anti-fraud measures mentioned in the survey were widely adopted by over 70% of respondents, with information controls the most widely implemented anti-fraud measure at 78%.

Reflecting the high levels of vulnerability reported by respondents to cyber intrusions, the top three cyber risk mitigation measures that executives expect their companies to implement in the next 12 months all address the problem of intrusions: i.e., intrusion detection systems that are device-based (57%), endpoint threat monitoring tools (55%), and intrusion detection systems that are network-based (54%).

Cyber security is also rapidly becoming a board governance mandate as the anticipated likelihood of an incident grows, compounded by increasing regulatory pressures and the costly reputational risks associated with data privacy and data loss events. 46% of respondents currently involve the board of directors in the formulation of cyber security policies and procedures, but another 40% plan to do so in the next 12 months.

A large proportion of respondents have adopted security risk mitigation measures, but given the high incidence and feelings of vulnerability around theft/loss of IP, it was surprising to see that only 66% of respondents have a plan for securing intellectual property. However, almost a quarter (24%) of respondents plan to implement these measures over the next 12 months.

Kroll CEO David Fontaine commented: "Senior executives are becoming acutely aware that threats to their organizations can arise at any time and originate from any place.  Insiders and ex-employees continue to pose a significant threat and have, together with external criminals and threat actors, more tools at their disposal than ever before with which to target and exploit companies.

"In the face of these mounting threats, organizations seeking to manage and mitigate the possibility of loss must take a holistic approach to enterprise risk management and implement diverse and layered measures that can enhance their ability to anticipate, detect, and respond to threats rooted not only in human error or intentional misconduct, but also in technological or  internal control gaps."

deVere Group launches cryptocurrencies app due to soaring global demand

A cryptocurrency app is to be launched by one of the world’s largest independent financial services organisations due to “soaring global demand” and in defiance of financial traditionalists.

deVere Crypto is the deVere Group’s second major fintech [financial technology] offering in less than 12 months.  It will be available in a matter of weeks.

deVere Group’s founder and CEO, Nigel Green, comments: “2017 saw the true dawn of the financial technology era.  Fintech is already fundamentally changing the way we access, manage and use money - and the changes are coming quicker than ever before due to improving technologies and growing demand.  

“Nothing has captured the imagination in this new fintech age quite like cryptocurrencies, specifically Bitcoin.  No-one was really talking about it back in 2016.  But those who invested in Bitcoin before the beginning of last year have enjoyed an impressive price increase.

“History will teach us that 2017 was the year that digital currencies came into the mainstream.”

He continues: “To meet this soaring global demand, we’re launching deVere Crypto, a pioneering cryptocurrency app, available for Apple and Android.  It allows users to store, transfer and exchange five major cryptocurrencies. These include Bitcoin and Ethereum.

“A team of some of the world’s leading blockchain – the revolutionary technology that underpins Bitcoin - and other fintech experts have created this new app which, I believe, is going to set a new standard in the thriving cryptocurrency sector.”

Mr Green goes on to add: “Our digital world needs digital currencies.  It makes sense.”

He says: “The world has changed in three significant ways that support the rise of cryptocurrencies.

“First, technological advancement. We are adopting more and more technology into our lives.  And the rate at which we’re doing so is increasing. It’s not just digitalisation or existing technology. From self-driving cars to intelligent robots, advanced new technologies will impact every part of our lives. Our financial lives will be no exception. Tech is now in our DNA.

“Second, political shifts. There is an appetite, a huge and growing one, for currencies that are not controlled by central banks and governments.  Supporters believe that these digital currencies are part of the antidote to what they see as the ills caused by the traditional system.

“And third, globalisation.  Whether some populist politicians like it or not, globalisation is happening and it’s here to stay.  We’re all becoming increasingly interdependent and internationally-minded, and this, when harnessed properly, is an immensely positive force for trade, commerce and prosperity across the world.”

The deVere CEO concludes: “Traditionalists who declare cryptocurrencies ‘a fad’ are akin to King Canute trying to command the tides of the sea to go back.

“deVere Crypto is designed to meet the growing need and want to store and transfer cryptocurrencies. It’s meeting the evident demand.”

Investigatiôns : Confrontations - A vendre : Ile Maurice

Située à 9 000 kilomètres de la métropole et à 30 minutes de vol de La Réunion, l’île Maurice a tout d'un paradis tropical. Elle attire 1 300 000 touristes par an, soit autant que sa population. Mais les écarts entre les plus riches et les plus pauvres se creusent à toute vitesse. Jusqu'à quand les Mauriciens accepteront-ils que leur île soit vendue au plus offrant? Investigatiôns a enquêté.

L'île Maurice fait tout pour séduire les Occidentaux, surtout s'ils ont la poche pleine. Depuis dix ans, elle séduit les investisseurs étrangers grâce à une santé économique insolente : 3,5 % de croissance et un PIB par habitant parmi les plus élevés d'Afrique. Une stabilité politique et sociale qui fait figure d’exception dans cette zone géographique. Une véritable performance pour ce pays indépendant depuis 1968 seulement. Une bonne énergie favorisée par une fiscalité aussi clémente que le climat (pas de taxes foncières et d'habitation). Paradis fiscal et eldorado pour les entrepreneurs, l’île Maurice devient l'enfer pour ceux qui ont raté le train de cette mondialisation à marche forcée. Les programmes immobiliers pour étrangers fortunés fleurissent partout dans le pays, tandis que les Mauriciens s’inquiètent pour l’avenir de leur île, dont l’âme est peu à peu bradée sur l’autel du libéralisme.

France Ô diffusé le mercredi 10 janvier 2018 à 20h55

Nespresso: Step Into The Mythical Origins Of Coffee

The African continent birthed most of the legends about the discovery of this magical plant. Just as the coffee cherry cradles two beans, so tradition on the source of coffee presents two myths. We went back to the regions where coffee was first grown and selected beans that brought to life the sources where everything started.

Arabica Ethiopia Harrar

Imagine the expanses of western Ethiopia where Kaladi , a young goatherd, lay down to nap in the shade while his goats bounded freely about. When he woke up, he found them hopping up and down, up and down, around a plant bearing red cherries. After tasting the fruit, he himself felt unusually wonderful and started hopping and dancing with the goats. A monk, noticing what was happening, grew suspicious of the cherries and threw them into the fire. When the heady aromas wafted up, the monk removed the cherries, crushed them, and, from the beans, prepared a drink that captured his heart there and then.

Discover a blend with notes of ripe fruit, flowers, and grains. A mild, medium roast espresso blend, with  a velvety body.

Robusta Uganda

Imagine yourself in the distant past of Buganda, better known to us today as Uganda, where the valuable Robusta beans were an inseparable part of a ceremony that would take place on the banks of Lake Victoria. Under the starry sky, two families  gathered around the bonfire, and split a single Robusta coffee cherry down the middle. One representative of each family would then bite into one of the beans of the fruit. United through this ceremony by bonds of loyalty and friendship, the two families now started to dance around the fire, their shadows long against the surrounding mountains.

Introducing our extra-strong espresso, surprising in its sweetness, given the Robusta contents. A powerful blend, intense with cocoa notes.