BOM Publishes Guidelines for Private Banking and Digital Banks
The Bank of Mauritius (BoM) has been removed from the list of high-risk countries under the UK Money Laundering and Terrorist Financing (Amendment) (No. 3) (high-risk countries) Regulations 2021. BoM also issued the revised guideline on private banking and a new guideline for digital banks. The guideline on private banking sets out the regulatory and supervisory framework applicable to banks conducting private banking business while the guideline on digital banks sets out the regulatory and supervisory framework for operating a digital bank in Mauritius. Both the guidelines come into effect from December 06, 2021.
The guideline for digital banks specifies additional requirements to, or exemptions from the legal, regulatory, and supervisory framework applicable to traditional banks and the terms and conditions under which BoM shall consider these exemptions under section 7(7E) of the Banking Act 2004. Digital banking business is defined in the Banking Act 2004 as "banking business carried on exclusively through digital means or electronically." The guideline shall apply to banks licensed under section 7(5) of the Banking Act 2004 to carry on exclusively digital banking business (digital bank) and private banking business or Islamic banking business solely through digital means or through electronic delivery channels under section 52(1) of the Banking Act 2004 (digital private bank or digital Islamic bank). The guideline stipulates that a restricted digital bank shall comply with banking laws, the Guideline on Fit and Proper Person Criteria, the Guideline on Related Party Transactions, the Guideline on Corporate Governance, the Guideline on Credit Concentration Risk, Guideline on Credit Risk Management, Guidelines on Outsourcing by Financial Institutions, Guideline on Liquidity Risk Management, Guideline on Maintenance of Accounting and Other Records and Internal Control Systems, the Guideline on the Computation of Debt-to-Income Ratio for Residential Property Loans, Guidelines for Calculation and Reporting of Foreign Exchange Exposures of Banks, the minimum capital requirements prescribed in this Guideline, and the prudential limits set out under this section. The guideline also sets out the requirements pertaining to Anti-Money Laundering and Combating the Financing of Terrorism and Proliferation (AML/CFT).
Furthermore, the guideline for digital banks stipulates that a digital bank shall comply with all the statutory reporting requirements and submit the regulatory returns and any other reporting requirements as communicated by BoM. During the restricted phase, a restricted digital bank shall also submit, to BoM, half-yearly progress updates on the implementation of its business plan. A digital bank shall also ensure compliance with the relevant data protection laws and regulations. However, a restricted digital bank shall, upon request, be exempted from the requirement to submit regulatory returns that may not be applicable to its business model.
Related Links
- Media Release on High-Risk List
- Notice on Guidelines
- Guideline on Private Banking
- Guideline for Digital Banks
Effective Date: December 06, 2021
Keywords: Middle East and Africa, Mauritius, Banking, Private Banking, Digital Banking, Regulatory Capital, Reporting, Basel, AML/CFT, BOM
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
EBA Issues Requirements on Pillar 3 Disclosures for IRRBBRelated Articles
EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
EBA Publishes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
EC Publishes Results on Review of Web Accessibility Directive
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
NGFS Report Explores Quantification of Climate Risk Differentials
The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations
MAS Consults on Adjustment Spreads for Conversion of SOR Contracts
The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.