FS-1.20 Money Lending Licence.

Section 2: “moneylender” means a person, other than a bank or a 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 as an agent.

Section 14A(1)(a): “Subject to subsection (2), no person shall engage in the business of moneylending in Mauritius without a licence granted by the Commission.” Section 14A(1)(c): “No person, other than a company, shall be granted a licence under this section.”

Section 14A(5): “This section shall not apply to a loan made by or provided by any person specified in the Fifth Schedule.” Fifth Schedule includes, among others, a person bona fide carrying on banking or insurance, or any business not having as its primary object the lending of money, in the course of which and for the purposes of which he lends money; bodies expressly empowered by enactment to lend; and “any person lending money through a peer-to-peer lending platform operated by a person licensed by the Commission to operate that platform.”

The FSC moneylending FAQ: a GBC should apply where it is engaged or intends to engage in moneylending in Mauritius; a GBC solely engaged in moneylending outside Mauritius would not be required to seek the licence; a GBC lending money to another GBC is held to be conducting business outside Mauritius with respect to that transaction. That is FSC FAQ guidance, not a substitute for section 14A.

Section 14A(1)(b): section 14 applies to the grant of a moneylender licence as it applies to a licence granted under that section, with such modifications, adaptations and exceptions as may be necessary. Part IV application and grant tests therefore still bite.

Section 16(1): an application must be in such form and manner as FSC Rules specify and accompanied by “(a) a business plan or feasibility study outlining the proposed business activity of the applicant; (b) particulars and information relating to customer due diligence verification of promoters, beneficial owners, controllers and proposed directors …; (c) such fees as may be specified in FSC Rules; and (d) such other information as may be specified in FSC Rules or otherwise required by the Commission”.

Section 18(1): the Commission may issue a licence “authorising the applicant to carry out the business activity specified in the licence on such terms and conditions as may be specified in FSC Rules or as it deems appropriate in the circumstances.” Section 18(2) forbids a grant unless, among other things, the application complies with the law, the applicant has “adequate resources, infrastructure, staff with the appropriate competence, experience and proficiency”, adequate arrangements to supervise everything done under the licence, fit-and-proper controllers and beneficial owners, and “no prejudice would be caused or would ensue to the financial services industry”. Section 18(3): the holder “shall, at all times, continue to satisfy the requirements specified in subsection (2)”.

Section 25: the Commission may, by written notice, vary a licence. It must not restrict the authorised activity or include further conditions unless it has notified the licensee of the proposal and the reasons and given a reasonable opportunity to make representations.

Section 14A(2): every moneylender shall comply with such requirements as the Commission may specify. Section 14A(3): the Commission may, by guidelines, instructions or directives, require every moneylender to comply with such provisions of this Act as it considers appropriate. Section 14A(4): the Commission may inspect operations and affairs, including by a duly qualified person whose costs may be recovered as a civil debt.

Section 14A(6): contravention is an offence, a fine not exceeding one million rupees and imprisonment for a term not exceeding 5 years. Deposit-taking would move the analysis to the Banking Act. FS-1.17 is the platform; FS-2.3 is credit finance.