By Houmairah Saumtally, Manager – Corporate & Fund Administration, ONS FinServ
In this insightful thought leadership, ONS FinServ’s Houmairah Saumtally takes stock of key financial sector developments, both in Mauritius and beyond, since ONS FinServ’s inception in 2022. She explains how the jurisdiction is increasing its global relevance and investor attractiveness with robust regulations and business facilitation measures alike, embracing a digital-first approach and introducing innovative fund structures to bring cutting-edge services to global investors.
The global financial landscape is undergoing a significant realignment, with momentum shifting from traditional hubs like Singapore, Switzerland, and Luxembourg to more agile, business-friendly centres like those in the Gulf Cooperation Council (GCC) – be it the Dubai International Financial Centre (DIFC) or the Abu Dhabi Global Market – and Mauritius.
More excitingly, as cross-border structuring becomes the norm, Mauritius is now frequently integrated into multi-jurisdictional strategies alongside GCC hubs, enhancing its relevance and global footprint.
No wonder that data from the Financial Services Commission (FSC) of Mauritius shows that, as of 31 January 2025, there were over 1,000 global funds operating from the jurisdiction, with a sizeable number of funds hailing from development finance institutions and sovereign wealth funds.
Facing challenges, emerging stronger
The resilience of the jurisdiction is clear from its proven ability to navigate challenges and weather adverse headwinds, such as the FATF grey listing in February 2020. In the face of this significant blow, Mauritius made a remarkable comeback, exiting the FATF grey list in October 2021 by achieving full compliance with all 40 FATF recommendations, reinforcing its reputation as a robust and credible international financial centre.
Moreover, Mauritius was also removed from the European Commission’s list of high-risk third countries with effect from 07 January 2022, following the FATF assessment which commended the hard work and determination of Mauritius to implement AML/CFT reforms. This significantly included the introduction of the pioneering Virtual Asset and Initial Token Offering Services Act (VAITOS) to regulate new technologies. This path-breaking regulation made Mauritius one of the first countries in the Eastern and Southern African region to adopt comprehensive legislation on these exciting digital assets, paving the way for companies to raise capital and investors to fund ventures by leveraging the latest technologies.
On another front, a key challenge facing the jurisdiction was investor uncertainties around the India-Mauritius tax treaty. In January 2025, the Central Board of Direct Taxes (CBDT) in India clarified that investments made under the tax treaty with Mauritius will not be subject to retrospective scrutiny under the Principal Purpose Test (PPT), addressing long-standing concerns about global tax regulation scrutiny and providing stability to investors.
Looking ahead, SEBI’s evolving FPI framework – including clarifications on GAAR, look-through provisions, and beneficial ownership rules – continues to offer Mauritius a recognised and stable route for structuring investments into India.
Pioneering innovative fund structures
Mauritius introduced the Variable Capital Company (VCC) framework in 2022, becoming only the second jurisdiction globally after Singapore to adopt this modern, flexible fund structure.
The VCC accommodates both open- and close-ended sub-funds (SFs) under a single umbrella, and is ideal for both institutional and private capital use. What sets the VCC structure apart is how SFs within a VCC can elect to have separate legal identities from the main VCC. It also allows for greater flexibility to fund managers who can use this structure to create SPVs for specific investment purposes.
Overall, the jurisdiction’s agility, cost-effectiveness, and regulatory clarity have made it an attractive base for discretionary trusts, PCCs, and VCCs alike, especially in the context of private wealth, family offices, and FPI-linked fund structures.
Enhancing its attractiveness, improving its value proposition
When it comes to business facilitation, Mauritius has embraced a digital-first regulatory approach, with the FSC fast-tracking licensing and onboarding, making it one of the more efficient and cost-effective jurisdictions in the global fund landscape.
The FSC also launched an Artificial Intelligence (AI) Powered Due Diligence Platform in February 2023 to fight financial crime, raising the profile of Mauritius at the vanguard of AI adoption in regulatory technology.
Going beyond business facilitation, there is a global trend toward substance, transparency, and governance, and Mauritius is increasingly viewed as a jurisdiction capable of offering this value-added service proposition to investors at both institutional and boutique scale.
Recent changes include requirements for public companies to maintain gender diversity on boards and updated procedures for shareholder meetings. These amendments reflect a broader commitment to corporate governance and social responsibility within the Mauritian business environment.
In addition, the FSC has recently introduced new Disclosure and Reporting Guidelines for ESG Funds, underscoring the island’s commitment to integrating Environmental, Social, and Governance (ESG) principles throughout its financial services ecosystem.
ONS FinServ’s contribution: Working hand in hand with the Mauritius IFC
At ONS FinServ, we have witnessed the evolution of the Mauritian financial services landscape first hand, and are pleased to be part of this thriving ecosystem with robust regulations, a digital-first mindset, and long-standing reputation. Our symbiotic approach to the Mauritius IFC takes the form of adding value to the financial services ecosystem with our cross-jurisdictional perspective, and leveraging its offerings to add value to our investors in turn:
- Embracing innovative offerings: ONS FinServ was the first management company to successfully establish a VCC fund in Mauritius, demonstrating regulatory confidence, technical capability, and first-mover advantage.
- Multi-jurisdictional footprint: Through our presence in Mauritius, DIFC, and international offices, we actively bring global businesses to Mauritius, supporting its position as a leading financial gateway.
- Consistent advocacy: Our team consistently represents and promotes Mauritius on international platforms, contributing to its narrative as a forward-thinking, well-regulated jurisdiction for fund and fiduciary services.
- Capacity Building efforts: We continue to support the ecosystem through education, thought leadership, and execution-driven partnerships, helping clients navigate the evolving landscape with speed, compliance, and clarity.
With our agile and cross-jurisdictional mindset, we look forward to supporting the ongoing evolution of the fund finance market in Mauritius in line with the broader global trends towards innovation, sustainability, and regulatory compliance. We are excited to foster collaborations among fund managers, investors and regulators to help the jurisdiction navigate global complexities and drive positive outcomes for all participants.
