Mr Deputy Speaker, Sir, with regard to part (a) of the question, I am informed by the Financial Services Commission that the commission has conducted, during the period 2021 to date, a total of 1,753 on-site inspections relating to anti-money laundering and combatting the financing of terrorism, prudential and conduct matters, out of which, 39 are related to on-site prudential inspections.

58 Moreover, 1,354 off-site or desk prudential inspection comprising mainly review of audited financial statements, capital adequacy and actuarial evaluation reports were carried out. With regard to part (b) of the question, I am informed by the FSC that 36 on-site conduct inspections have been carried out triggered by complaints and whistleblowing. The remaining 1,678 on-site inspections conducted by the FSC were principally focused on AML/CFT. My colleagues may wish to recall that in February 2020, Mauritius was placed on the FATF Grey List as a result of strategic deficiencies with regard to its AML/CFT Framework. The FATF identified Mauritius should continue to work on its action plan to address its strategic deficiencies, including the effective implementation of a risk-based supervision plan for the FSC. Subsequently, the Financial Services Commission updated its AML/CFT risk-based supervision framework, which is being used to assess risk and compliance and rate licensees accordingly. Based on their respective risk rating, licensees are identified for AML/CFT focus inspections to be conducted for each yearly cycle, that is, from March to February. Mr Deputy Speaker, Sir, for the year 2025-2026, the FSC has planned 323 on-site inspections to keep the AML/CFT risk understanding of its financial institutions up to date. Thank you.

It would seem that in the past few years, there has been a high concentration on AML/CFT inspections as opposed to prudential inspections. This may be the cause of a rise in the number of complaints to the Ombudsperson for Financial Services. Would the hon. Minister consider the possibility of looking into the matter so that remedial actions are taken with a view to preserve this sector in Mauritius?

I totally agree with the hon. Member, Mr Deputy Speaker, Sir. We are reviewing the strategic way FSC has been functioning. There has been a lot of focus on AML/ CFT due to being put on the Grey List. But we need to have a harmony and balance in all our operations. Thank you.

Yes, hon. Juman!

Thank you, Mr Deputy Speaker, Sir. Hon. Minister, I do not know whether you are aware, a non-technical staff is actually heading the Licensing Department at the FSC. A non-technical staff, a former HR, is heading the Licensing Department at the FSC. Are you aware of it?

59

I will look into the matter. I do not get into the operational matters of the regulatory body.

(Interruptions)

Sit down, hon. Juman!

You must understand that it is a regulator, and the Minister does not interfere in a regulator’s functioning as such. We do not have the power to interfere in the regulator’s functioning as per the law.

Okay! The hon. Third Member for Montagne Blanche and Grand River South East! BEL AIR, NEW MARKET FAIR – STALLS ALLOCATION – PROCEDURES