Section 43: Special examinations

43. Special examinations (1) Where, in relation to any financial institution, a special examination appears to be necessary or expedient in order to determine whether the financial institution is in a sound financial condition and whether the banking laws or any enactment relating to anti-money laundering or prevention of terrorism or guidelines and instructions issued by the central bank, as the case may be, are being complied with, the central bank may appoint one or more of its officers or such other duly qualified person to conduct a special examination in respect of the affairs of the financial institution and of its affiliates and overseas branches and affiliates, if any. (2) Where the central bank has reason to believe that any person who, either as a principal or as an agent, carries on, advertises or holds himself out in any way as carrying on banking business, deposit taking business, business of foreign exchange dealer or money changer or accepting deposits from the public, without a licence or written authorisation from the central bank, it— (a) shall require the person to produce for examination its books, accounts, records and financial statements and such other information and certified copies of all relevant documents as it may require to ascertain whether the person is carrying on that business; (b) may cause a notice in writing to be issued, calling upon any person who is suspected to be involved in engaging in activities under the banking laws without holding the appropriate licence, to attend the central bank for the purpose of being examined orally in relation to any matter which may assist in its investigation and calling upon the person to produce any book, document or information in his possession within the period specified in the notice; and [Issue 6] B3 – 34 Revised Laws of Mauritius (c) may issue a warning alert to caution the public that the person specified in the alert may be engaging in activities under the banking laws without holding the appropriate licence issued by the central bank. (3) Where the central bank appoints a duly qualified person to conduct a special examination in respect of the affairs of a financial institution and of its affiliates and overseas branches or affiliates, if any, the costs incurred in connection therewith may be recovered, in whole or in part, by the central bank by deduction from any balance of, or money owing to, the financial institution, as if it were a civil debt. (4) The central bank may, when exercising a power under subsection (2) (a), request such assistance as may be necessary from the Commissioner of Police. [S. 43 amended by s. 3 (l) of Act 27 of 2013 w.e.f. 21 December 2013.]