Section 11: Revocation and surrender of banking licence

11. Revocation and surrender of banking licence (1) Subject to this section, the central bank may revoke a banking licence issued under this Act where the bank— (a) fails to commence business within a period of 12 months from the date the licence is issued; (b) is carrying on business in a manner which is contrary or detrimental to the interests of its depositors or the public; (c) has insufficient assets to cover its liabilities to its depositors or the public; (d) fails to comply with any directive or instruction issued by the central bank under the banking laws; (e) contravenes any provision of the banking laws; (f) is convicted by a Court in Mauritius, Court of the Commonwealth or Court of such other country as may be prescribed, of an offence under any enactment relating to anti-money laundering or prevention of terrorism or the use or laundering in any manner, of proceeds or funding of terrorist activities or other illegal activities or is the affiliate or subsidiary or parent company of a financial institution which is so convicted, provided the conviction is a final conviction; [Issue 9] B3 – 14 Revised Laws of Mauritius (g) ceases to carry on banking business; (h) goes into receivership or liquidation, is wound up or otherwise dissolved; or (i) in the case of a branch of a bank incorporated abroad, the bank loses its banking licence in the jurisdiction where its head office is located. (2) Subject to subsection (3), where the central bank decides to revoke a banking licence, it shall serve on the bank a notice of its decision to do so, specifying a date, which shall be not less than 30 days of the date of the notice, on which the revocation shall take effect. continued on page B3 – 15 B3 – 14 (1) [Issue 9] Revised Laws of Mauritius (3) The central bank may, where subsection (1) (h) applies, revoke the banking licence forthwith without being required to serve the notice under subsection (2). (4) The bank may, within 14 days of service of a notice under subsection (2), make representations to the central bank. (5) The central bank shall, after considering any representations made under subsection (4), take a final decision on the revocation and shall notify the bank in writing of its decision. (6) Where the banking licence of a company is revoked, the banking laws shall continue to apply to the banking business of that company, to such extent as the central bank may direct. (7) A bank may, with the prior permission of the central bank and subject to such conditions as the central bank may specify, surrender its licence at any time. (8) The central bank may, before or after the revocation or surrender of a banking licence, make such inquiry and give such directions as it may determine, so as to ensure that the interests of depositors and of the public are preserved. (9) Where a banking licence is revoked or surrendered under this section, the central bank shall give public notice thereof in the Gazette and in at least 3 daily newspapers in wide circulation in Mauritius.