Section 50: Power to issue instructions

50. Power to issue instructions (1) The Bank may, whenever necessary, require the co-operation of, and co-operate with, banks and other financial institutions— (a) to promote and maintain adequate and reasonable banking services for the public; B2 – 25 [Issue 7] Bank of Mauritius Act (b) to ensure high standards of conduct and management throughout the banking and credit system; (c) to regulate the banking and credit system so as to ensure a proper distribution of credit and a sound financial structure; and (d) to further such policies as may be in the national interest and not inconsistent with this Act. (2) The Bank may, for the efficient achievement of the purposes of this Act, by notice in writing to banks or to other financial institutions, issue instructions or guidelines or impose requirements on or relating to the operations and activities of and standards to be maintained by the banks and other financial institutions. (3) Any instructions or guidelines issued or requirements imposed under subsection (2) which shall be applied fairly and impartially but may not necessarily be the same for all banks and other financial institutions, shall take effect on receipt of the notice or at such other time as the Bank may specify, being a date not earlier than the date of the notice. (3A) (a) The Bank may, for the purpose of regulating, developing or maintaining the proper functioning of the money market, foreign exchange market or derivatives market— (i) issue rules, codes, standards, principles or guidelines; and (ii) register or deregister dealers authorised to trade on these markets. (b) No financial institution shall appoint as dealer any person who is not registered as an authorised dealer by the Bank. (3B) — (4) Any person to whom instructions or guidelines are issued or requirements are imposed under subsections (2), (3) and (3A) shall comply with those instructions, guidelines or requirements. (5) Any person who contravenes subsection (4) shall commit an offence and shall, on conviction, be liable to a fine not exceeding 500,000 rupees and to imprisonment for a term not exceeding 5 years. (6) (a) Without prejudice to subsection (5) and notwithstanding the Banking Act and this Act, the Bank may impose an administrative penalty on any financial institution which refrains from complying, or negligently failed to comply, with any instructions or guidelines issued or requirement imposed by the Bank under the banking laws. (b) The Bank shall, when determining the quantum of the administrative penalty to be imposed on the financial institution, consider the gravity of the breach committed by the financial institution and the length of time during which the breach is committed. (c) (i) The Bank may cause to be published, in such form and manner as it may determine, a public notice setting out the administrative penalty which is imposed on a financial institution. [Issue 7] B2 – 26 Revised Laws of Mauritius (ii) The notice under subparagraph (i) shall not contain any information which the Bank considers to be sensitive. (7) An administrative penalty under subsection (6) may be recovered by deduction from any balance of or money owing to the central bank as if it were a civil debt. [S. 50 amended by s. 2 (b) of Act 27 of 2012 w.e.f. 22 December 2012; s. 2 (f) of Act 27 of 2013 w.e.f. 21 December 2013; s. 3 (f) of Act 9 of 2015 w.e.f. 14 May 2015.]