BOM - Bank Of Mauritius

Who is BoM?

The Bank of Mauritius (BoM) is the central bank of the Republic of Mauritius, established in 1967 under the Bank of Mauritius Act. BoM is responsible for managing monetary policy, maintaining national financial stability, issuing the national currency (the Mauritius Rupee), and managing the country’s foreign exchange reserves. The bank acts as the supervisory authority for credit institutions and the banking system in Mauritius, ensuring compliance with risk management and anti-money laundering (AML) regulations. BoM is governed by a Governor and a Board of Directors, operating independently but under the oversight of the Government of Mauritius.

How does BoM regulate forex brokers?

• Before 2001: BoM not only regulated banks but also supervised and licensed entities related to foreign exchange, including foreign exchange dealers, money changers, and non-bank deposit-taking institutions. BoM adhered to the Basel Concordat 1988 standards on customer due diligence and information confidentiality.
• After 2001: Regulatory responsibilities were separated:
• BoM regulates banks (including foreign exchange activities conducted by banks).
• The Financial Services Commission (FSC) regulates all non-bank financial institutions, including forex brokerage firms.

BoM supervises financial institutions operating in Mauritius, including banks, forex dealers, and non-bank organizations. The key regulations include:
1. Licensing: Forex-related institutions must obtain a license to operate legally in Mauritius.
2. Risk management and compliance: Institutions are required to maintain effective risk management measures and comply with AML/CFT regulations.
3. Reporting and supervision: Institutions must submit periodic financial reports and remain open to regulatory inspections by BoM.

How to verify if a broker is licensed by BoM?

BoM only licenses banks and foreign exchange institutions that operate under banks, not independent forex brokers. Therefore, BoM license verification applies to banks.
• For banks: Visit the official BoM website:
 https://www.bom.mu
to check the list of licensed banks and foreign exchange institutions.
• For non-bank forex brokers: They fall under the jurisdiction of FSC, not BoM. Verification can be done at:
https://www.fscmauritius.org

How to resolve disputes with a BoM-regulated broker?

• For banks (licensed by BoM): Since 2004, BoM has established the Ombudsman for Banking Services, an independent body that handles complaints from customers regarding banking services.
• For non-bank forex brokers: These fall under FSC’s jurisdiction. Complaints should be submitted to FSC following its procedures.