FS-2.9 Payment Intermediary Services Licence falls under Section 14 of the Financial Services Act 2007  (FSA)

Payment intermediary Services (‘PIS’) is related to the processing and execution of payment transactions whereby the consents of merchants/buyers are required for finalising the execution of the payment transactions.

The FSC has been issuing licences for different types of PIS including:

> escrow payment service providers
> mobile payment service providers
> e-wallet service providers, amongst others

Holders of a PIS licence issued by the FSC shall conduct business exclusively outside Mauritius. They are typically supported by acquiring and issuing banks in their intermediary roles.

Both a domestic and global business company incorporated under the Companies Act of Mauritius may apply for the PIS licence.

Minimum Stated Unimpaired Capital

There is a requirement to maintain a minimum stated unimpaired capital for a PIS License set at MUR 2,000,000 (equivalent of approx. USD 60,000).

Licensing Fees

Payment Intermediary Services Licence USD 1,000 (Processing) & USD 1,900 (Annual Fee)

Requirement regarding management and control of a Payment Intermediary Services entity

> The Board shall consist of at least 2 resident Directors; and
> The Board shall establish sub-committees in line with corporate governance principles and infrastructure.

Officers/Functionaries of the Company

Officers are defined under Section 2 of the FSA and include Directors, Compliance Officer, Money Laundering Reporting Officer and Deputy Money Laundering Reporting Officer and Company Secretary. Necessary approvals are sought under Section 24 of the FSA.

The FSC ensures, prior to licensing any NBFI’s that the applicant meets the “fit and proper” criteria.

In considering whether a person is fit and proper, the FSC may, have regard to the following criteria:

> relevant education, qualifications and experience;
> ability to perform the relevant functions properly, efficiently, honestly and fairly; and
> reputation, character, financial integrity and reliability.

The Anti-Money Laundering Officer (MLRO) & Deputy MLRO must meet the requirements of the competency standards issued by the Commission

Application for a Payment Intermediary Services (PIS) license

Any person who is willing to conduct PIS is required to submit an application to the FSC which shall be accompanied by the following information/documents:

> A business plan or feasibility study outlining the proposed business activity;
> Details about the payment platform/gateway/server (including PCI DSS Certificate);
> Particulars of promoters, beneficial owners, controllers, directors and officers;
> Manuals with respect to internal controls, risk management and AML/CFT procedures;
> Such fees as may be specified in Financial Services (Consolidated Licensing and Fees) Rules 2008; and
> Such other information as may be specified in FSC Rules or otherwise required by the Commission to determine the application.

Ongoing obligations to be fulfilled by a holder of a Payment Intermediary Service Licence

The holder of a PIS licence should adhere to sound business principles including:

> Maintaining at all times a minimum stated unimpaired capital of at least MUR 2 million;
> Establishing and maintaining a sound corporate governance framework in line with the National Code of Corporate Governance in Mauritius and Internal Control systems and procedures;
> Protecting clients’ best interests at all times by acting honestly, fairly and with due care, skill and diligence;
> Preventing conflicts of interests;
> Adhering to anti-money laundering and financing of terrorism legislations;
> Subscribing to appropriate Professional Indemnity Insurance (PII) policies;
> Submission of Audited Financial Statements within 6 months of its balance sheet date; and
> Any other requirements as the FSC may require.