FSC Establishes New Code of Conduct for Operators

Since the first Sunday in April, a new code of conduct for traders in financial services and are under the control of the Financial Services Commission (FSC) is in force.

The goal of FSC is to develop a device capable of effectively combating the crimes of money laundering and suspicious transactions related to terrorist financing.

The first code was initiated in 2003 by the FSC. This version aims to harmonize provisions of various codes that have been issued.

The FSC does not confine itself to regulate the mode operators that operate under its parameters as a regulator of the financial services industry or who are governed by the provisions of the Insurance Act 2005 and the Securities Act of 2005. Are also affected by this new code, license holders other than those engaged in the financial service or who are employed in this sector. These are companies specializing in the management of companies or trusts.

Foreign companies operating branches or subsidiaries in Mauritius can follow the directives of regulatory agencies in their home country. However, just as long as they are in line with the philosophy of the code issued by the FSC or the recommendations of the Financial Action Task Force (FATF), an intergovernmental body whose purpose is to develop strategies capable of combat the risk of money laundering, terrorist financing and proliferation of weapons of mass destruction.

One area where this occurs is the code identification of holders of licenses for operators in the financial services sector of the financial sources of customers who approach them. The code calls on them to make a difference between the source of funds and a source of wealth. Under the new code, the first results from an activity or a customer's financial transaction. The second refers to activities that, taken together, have generated the entire property available to the client.