Regulatory Alerts2022-05-12
Guideline on Related Party Transactions
The Bank of Mauritius issued this revised guideline to establish governance frameworks, regulatory limits, and monitoring requirements for related party transactions by banks and non-bank deposit-taking institutions. It mandates board-approved policies, classifies exposures into three categories with aggregate caps of 60% and 150% of Tier 1 capital, and requires transactions to be conducted at market terms unless exempted or structured as staff loans. Financial institutions must maintain updated information systems, disclose interests per the Banking Act 2004, submit quarterly reports to the regulator, and achieve full compliance by 30 September 2022.
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