You recall that FATF had greylisted Mauritius which was placed in the list of jurisdictions under increased monitoring because Mauritius has not made positive and tangible progress on several effectiveness issues, including the lack of
• effective risk-based supervision
• improvement in access to beneficial ownership information-
• capability to conduct ML investigations, including parallel ML investigations
• control and oversight over non-profit organizations on terrorism financing
• improvement in access to beneficial ownership information-
• capability to conduct ML investigations, including parallel ML investigations
• control and oversight over non-profit organizations on terrorism financing
The SEBI, India’s securities market regulator, had thus classified Mauritius in an inferior category because Mauritius is not an FATF member, which disadvantaged Mauritius vis à vis its competitors. Only the offshore funds coming from jurisdictions that are Financial Action Task Force(FATF) compliant were allowed to obtain a category I license.
But now, because of the substantial impact of Covid-19 on the Indian economy, a need has been felt for temporary relaxations with respect to compliance requirements for Foreign Portfolio Investors. SEBI has amended the rules allowing the funds coming from those countries which are non-FATF compliant to obtain FPI preferential category I foreign portfolio investor (FPI) license. All the countries, including Mauritius which are non-FATF compliant will be benefiting from this amendment.
Now what these bluffers are telling us is that we were able to benefit from this amendment only after the PM talked to Modi. We know to what extent they will go to show their servility to the PM. We saw that during the NA’s debate on Government Programme 2020-24 but they should not go to the extent “de nous prendre pour des cons,” which we are not !!!
