VENDREDI 07 JANVIER 2022 BIZWEEK ÉDITION 376 The Financial Services Commission (FSC) The FSC is the integrated regulator in Mauritius for the financial services sector other than banking, and global business. It has, for the year 2021, conducted 40 on-site inspections on Management Companies/Corporate Trustees to assess their AML/CFT compliance. The on-site inspections focused mainly on the following : Enterprise risk assessment and its application to clients ; AML/CFT policies and procedures ; IT systems, software and transaction, Politically Exposed Person (PEP) and Targeted Financial Sanctions (TFS) screening tools ; Record keeping ; Customer due diligence including beneficial ownership ; Enhanced due diligence including PEPs ; Targeted financial sanctions and asset freezing ; Suspicious transaction reporting process, Suspicious Transaction Reports (STRs) and internal disclosures ; Compliance Officer, Money Laundering Reporting Officers (MLRO), Board of Directors and Senior Management Oversight ; AML/CFT training of Compliance Officer, MLRO, Board Directors and employees ; and Effectiveness of the Internal Audit regarding AML/CFT. In addition to the above, 3 on-site inspections were carried out on companies involved in Global Headquarters Administration/Global Legal Advisory Services. Based on the findings of the on-site inspections, 4 Trust or Company Service Providers (TCSPs) were referred to Enforcement Directorate. On-site inspections of Insurers and Insurance Intermediaries The FSC has, for the year 2021, conducted 13 on-site inspections for 8 insurers and 5 insurance intermediaries. The objectives of the inspection were to : Ascertain compliance with relevant laws and regulations ; Determine whether dealings with policyholders and public are fair and transparent ; and Ensure adherence to anti-money laundering laws and regulations. On-site inspections of Investment Funds and their Intermediaries The FSC has, for the year 2021, conducted 234 on-site inspections for investment funds and their intermediaries related to both domestic companies and holders of Global Business Licence as per the table below : The objectives of the on-site inspections ACTA PUBLICA FINANCIAL SERVICES COMMISSION Regulatory actions and on-site inspections : 2021 under review The Financial Services Commission (FSC) has been admitted as a member of ANNA on 02 December 2021 and is henceforth recognised as the sole NNA for Mauritius for proper oversight on the issue of International Securities Identification Numbers (ISIN). Earlier on, it launched the Regulatory Framework on Crowdfunding on 25 November 2021. Regarding its licensees, the Commission conducted 40 on-site inspections on Management Companies/Corporate Trustees, 13 on-site inspections for 8 insurers and 5 insurance intermediaries, 234 on-site inspections for investment funds and their intermediaries and over 30 AML/CFT focused on-site inspections were to check the adherence of licensees to the Financial Intelligence and Anti-Money Laundering Act 2002 and the Financial Intelligence and Anti-Money Laundering Regulations 2018. - IIMMI Number of on-site inspections Collective Investment Schemes/Closed-end Funds 169 CIS Managers 60 Custodian (CIS and Non-CIS) 0 Distribution of Financial Products 2 Asset Management 3 Regulatory actions taken in 2021 The FSC is committed to a fair, proportionate and consistent application of its enforcement powers to protect consumers of financial services and to take appropriate action against non-compliant licensees whenever necessary. The following actions were taken in 2021 : 2 licences were suspended ; 5 licences were revoked ; 1 approval to act as Captive Insurance Agent was revoked ; 1 authorisation to act as Collective Investment Scheme was withdrawn ; Administrative penalties by way of settlement were imposed against 3 licensees ; Administrative penalties were imposed against 8 licensees and one officer respectively by the Enforcement Committee ; 6 private warnings were issued against 1 licensee and 5 officers respectively ; and 1 officer was disqualified. AML/CFT focused On-site Inspections of Financial Services Intermediaries The FSC, through its Capital Markets Unit, has as at 30 November 2021, conducted over 30 AML/CFT focused on-site inspections in line with the Risk-Based Supervision plan for the second cycle of 2021/2022 and pursuant to Section 43 of the FSA. The on-site inspections were focused on risks identified both at the national level through the National Risk Assessment as wellas at the sectorial and entity levels. The on-site inspections conducted on the premises of entities licensed under the Securities Act and FSA were focused mainly on the following parameters : Enterprise risk assessment and its application to clients ; AML/CFT policies and procedures ; IT systems, software and transaction, PEP and TFS screening tools ; Record keeping ; CDD including beneficial ownership ; Enhanced Due Diligence including PEPs ; Targeted financial sanctions and freezing of assets ; Suspicious transaction reporting process, STRs and internal disclosures ; Compliance Officer, MLRO, Board of Directors and Senior Management Oversight ; AML/CFT training of Compliance Officer, MLRO, Board Directors and employees ; and Effectiveness of the Internal Audit regarding AML/CFT. 6 |