Section 2: Interpretation

2. Interpretation In this Act— “affiliate”, in relation to a financial institution, includes an entity which— (a) is a holding company, subsidiary company or company which is under common control of the financial institution; (b) is a joint venture of the financial institution; (c) is a subsidiary company or joint venture of the holding company of the financial institution; (d) controls the composition of the board of directors or other body governing the financial institution; (e) exercises, in the opinion of the central bank, significant influence on the financial institution in taking financial or policy decisions; or (f) is able to obtain economic benefits from the activities of the financial institution; “approval” means an approval given in writing; “assigned capital”, in relation to a bank incorporated outside Mauritius and having a branch in Mauritius, means capital consisting of funds transferred from abroad and such other funds as the central bank may determine; “auditor” means an auditor referred to in section 39; B3 – 3 [Issue 9] Banking Act “bank” means a company incorporated under the Companies Act, or a branch of a company incorporated abroad, which is licensed under section 7 (5) of the Act to carry on any of the following— (a) banking business; (b) Islamic banking business; (c) private banking business; (d) investment banking business; “banking business”— (a) means— (i) the business of accepting sums of money, in the form of deposits or other funds, whether or not such deposits or funds involve the issue of securities or other obligations howsoever described, withdrawable or repayable on demand or after a fixed period or after notice; and (ii) the use of such deposits or funds, in whole or in part, for— (A) loans, advances or investments, on the own account and at the risk of the person carrying on such business; (B) the business of acquiring, under an agreement with a person, an asset from a supplier for the purpose of letting out the asset to the person, subject to payment of instalments together with an option to retain ownership of the asset at the end of the contractual period; (iii) paying and collecting cheques drawn by or paid in by customers and making other payment instruments available to customers; and (b) includes such services as are incidental and necessary to banking; “banking laws” includes this Act, the Bank of Mauritius Act and any other enactment relating to banking; “banking licence” means a banking licence, an Islamic banking licence or a private banking licence granted under section 7; “Bankruptcy Court” means the Bankruptcy Division of the Supreme Court; “Board” means the Board of Directors of the central bank; “body corporate” means an incorporated body wherever incorporated; “capital base” means capital as specified by the central bank from time to time; “cash dealer” means a body corporate licensed by the central bank to carry on the business of foreign exchange dealer or money changer; [Issue 9] B3 – 4 Revised Laws of Mauritius “central bank” means the Bank of Mauritius established under the Bank of Mauritius Act; “collective investment scheme” has the same meaning as in the Securities Act; “company” has the same meaning as in the Companies Act; “constitution”, in relation to a company, has the same meaning as in the Companies Act; “control”, in relation to a financial institution, means control of any body corporate— (a) in which the financial institution, directly or indirectly or acting th Revised Laws of Mauritius “central bank” means the Bank of Mauritius established under the Bank of Mauritius Act; “collective investment scheme” has the same meaning as in the Securities Act; “company” has the same meaning as in the Companies Act; “constitution”, in relation to a company, has the same meaning as in the Companies Act; “control”, in relation to a financial institution, means control of any body corporate— (a) in which the financial institution, directly or indirectly or acting through one or more persons, owns, controls or has the right to vote 20 per cent or more of the voting securities of the body corporate to elect a majority of its directors; or (b) over which the financial institution, directly or indirectly, exercises a controlling influence, as the central bank may determine; “credit” means any commitment to disburse a sum of money in exchange for a right to repayment of the amount disbursed and outstanding and to payment of interest or other charges on such amount, any extension of the due date of a debt, any guarantee issued, and any commitment to acquire a debt security or other right to payment of a sum of money; “credit information bureau” means any person licensed by the central bank to carry on the business of collecting, consolidating and collating trade, credit and financial information whether fund based on non-fund based on recipients of credit facilities and guarantors for sale to creditors; “credit union” means a credit union defined in the Co-operatives Act the total assets of which, according to the latest audited balance sheet of the credit union, exceed 20 million rupees or such other amount as may be prescribed; “crime” has the same meaning as in the Criminal Code; “debt security” means any negotiable instrument of indebtedness and any other instrument equivalent to such instrument of indebtedness, and any negotiable instrument, whether in certificated or book entry form, giving the right to acquire another negotiable debt security by subscription or exchange; “demand liabilities” means the deposits in a bank which shall be repaid on demand; “deposit” means a sum of money paid on terms— (a) that it is to be repaid in full, with or without interest or premium of any kind, and on demand or at a time agreed by or on behalf of the person making the payment and the person receiving it; and B3 – 5 [Issue 9] Banking Act (b) that are not referable to the provision of property, services or the giving of security, whether or not evidenced by any entry in a record of the person receiving the sum, or by any receipt, certificate, note or other document; “deposit taking business” means the business of accepting— (a) deposits of money for the purpose of— (i) financing the specific activities of the non-bank deposit taking institution receiving such deposits, or such other activities as the central bank may approve; and (ii) investment in Government securities, Bank of Mauritius Bills issued under the Bank of Mauritius Act or such other investment as the central bank may approve; or (b) Islamic rules, in consonance with the ethos and value system of Islam deposits for the purposes of financing the activities of the non-bank deposit taking institution receiving such deposits or such other activities as the central bank may approve, the aims and operations of which are, in addition to the conventional good governance and risk management rules, in consonance with the ethos and value system of Islam; “director” has ct or such other investment as the central bank may approve; or (b) Islamic rules, in consonance with the ethos and value system of Islam deposits for the purposes of financing the activities of the non-bank deposit taking institution receiving such deposits or such other activities as the central bank may approve, the aims and operations of which are, in addition to the conventional good governance and risk management rules, in consonance with the ethos and value system of Islam; “director” has the same meaning as in the Companies Act; “external auditor” means an auditor appointed under section 39; “external credit assessment institution” means an institution recognised by the central bank under section 14C for the purpose of carrying on the business of assigning credit ratings on debt instruments and on issuers of debt instruments; “financial institution” means any bank, non-bank deposit taking institution or cash dealer licensed by the central bank; “financial statements” has the same meaning as in the Companies Act; “foreign exchange dealer” means any body corporate licensed as such by the central bank to carry on the business of— (a) buying and selling foreign currency, including spot and forward exchange transactions and wholesale money market dealing; and (b) a money changer; (c) money or value transfer services; “Government securities” has the same meaning as in the Public Debt Management Act; “group financial statements” has the same meaning as in the Companies Act; [Issue 9] B3 – 6 Revised Laws of Mauritius “group of closely related customers” means— (a) 2 or more persons who, unless it is otherwise shown, constitute a single risk because one of them, directly or indirectly, has control over the other or others as defined in the Companies Act; (b) 2 or more persons between whom there is no relationship of control as defined in paragraph (a), but who are to be regarded as constituting a single risk because they are so interconnected that, if one of them were to experience financial problems, the other or all of the others would be likely to encounter repayment difficulties; “independent director” means a director having no relationship with, or interest in, whether past or present, the financial institution or its affiliates, which could or could reasonably be perceived to materially affect the exercise of his judgment in the best interest of the financial institution; “International Accounting Standards” has the same meaning as in the Companies Act; “Islamic banking business” means any financial business, the aims and operations of which are, in addition to the conventional good governance and risk management rules, in consonance with the ethos and value system of Islam; “Islamic deposit” means a sum of money or monies’ worth received by or paid to any person, under which the receipt and repayment shall be in accordance with the terms of an agreement made on any basis, including custody or profit sharing; “licence” means any licence issued under this Act; “Minister” means the Minister to whom responsibility for the subject of finance is assigned; “money changer” means any body corporate licensed as such under this Act to carry on solely the business of— (a) buying and selling of foreign currency notes, coins and travellers’ cheques; (b) replacement of lost or stolen travellers’ cheques; and (c) encashment under credit cards; “moneylender” means a person, other than a bank or non-bank deposit taking institution, whose business ued under this Act; “Minister” means the Minister to whom responsibility for the subject of finance is assigned; “money changer” means any body corporate licensed as such under this Act to carry on solely the business of— (a) buying and selling of foreign currency notes, coins and travellers’ cheques; (b) replacement of lost or stolen travellers’ cheques; and (c) encashment under credit cards; “moneylender” means a person, other than a bank or non-bank deposit taking institution, whose business is that of moneylending or who provides, advertises or holds himself out in any way as providing that business, whether or not he possesses or owns property or money derived from sources other than the lending of money, and whether or not he carries on the business as a principal or an agent; B3 – 7 [Issue 9] Banking Act “money or value transfer service” means a financial service that accepts cash, cheques, other monetary instruments or other stores of value in one location and pays a corresponding sum in cash or other form to a beneficiary in another location, by means of a communication, message, transfer or through a clearing network to which the money or value transfer or service belongs, and where the transaction performed by such service may involve one or more intermediaries and a third party final payment; “non-bank deposit taking institution” means an institution other than a bank which is authorised by the central bank to conduct deposit taking business; “notice” means notice given in writing; “place of business”, in relation to a bank, includes its head or main office, a branch, an agency, a representative office, a mobile branch, an office established and maintained for a limited period and any other place used by the bank for the dispensing or acceptance of money on account or for the conduct of other banking business; “private banking business” means the business of offering banking and financial services and products to high-net-worth customers, including but not limited to an all-inclusive money-management relationship; “related party”, in relation to a financial institution, means— (a) a person who has significant interest in the financial institution or the financial institution has significant interest in the person; (b) a director or senior officer of the financial institution or of a body corporate that controls the financial institution; (c) the spouse, a child, the parent or ascendant or descendant of a natural person referred to in paragraphs (a) and (b); (d) an entity that is controlled by a person described in paragraphs (a) to (c); or (e) a person or class of persons who is designated by the central bank as a related party because of its past or present interest in or relationship with the financial institution being such that it might be reasonably expected to affect the exercise of best judgment of the financial institution in respect of a transaction; “Reserve Account” means the account specified in section 21; “senior officer”, in respect of a financial institution, means— (a) the chief executive officer, deputy chief executive officer, chief operating officer, chief financial officer, Secretary, treasurer, chief internal auditor or manager of a significant business unit of the financial institution; or (b) a person with similar position and responsibilities as a person referred to in paragraph (a); [Issue 9] B3 – 8 Revised Laws of Mauritius “significant interest” means owning, directly or indirectly or otherwise ha ”, in respect of a financial institution, means— (a) the chief executive officer, deputy chief executive officer, chief operating officer, chief financial officer, Secretary, treasurer, chief internal auditor or manager of a significant business unit of the financial institution; or (b) a person with similar position and responsibilities as a person referred to in paragraph (a); [Issue 9] B3 – 8 Revised Laws of Mauritius “significant interest” means owning, directly or indirectly or otherwise having a beneficial interest amounting to, 10 per cent or more of the capital or of the voting rights of a financial institution or, directly or indirectly, exercising a significant influence over the management of the financial institution, as the central bank may determine; “specialised financial institution” means an institution holding a specialised financial institution licence; “specialised financial institution licence” means a licence issued under section 11B (4); “stated capital” has the same meaning as in the Companies Act; “subsidiary” has the same meaning as in the Companies Act; “time liabilities” means all deposits, including savings deposits, which are not payable on demand; “unsecured advance” or “unsecured credit” means— (a) any advance or credit, as the case may be, made without security; or (b) in relation to any advance or credit made with security— (i) any part thereof which at any time exceeds the market value of the assets constituting the security; or (ii) where the central bank is satisfied that there is no established market value, the unsecured value as determined on the basis of a valuation proposed by the interested party and approved by the central bank. [S. 2 amended by s. 4 (a) of Act 17 of 2007 w.e.f. 22 August 2007; s. 2 (a) of Act 18 of 2008 w.e.f. 19 July 2008; s. 3 (a) of Act 14 of 2009 w.e.f 30 July 2009; s. 3 (a) of Act 10 of 2010 w.e.f. 24 December 2010; s. 3 (a) of Act 27 of 2013 w.e.f. 21 December 2013; s. 4 (a) of Act 9 of 2015 w.e.f. 14 May 2015; s. 3 (a) of Act 18 of 2016 w.e.f. 7 September 2016.]