GIS – 20 November 2018: A four-day regional workshop on Risk-Based Supervision for Securities/Pensions Supervisors, organised by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) in collaboration with the Financial Services Commission (FSC), opened yesterday at Holiday Inn in Plaine Magnien.
Around 50 delegates of the ESAAMLG Secretariat including resource persons from the Centre for Financial Regulation and Inclusion are attending the workshop. The Minister of Financial Services and Good Governance, Mr Dharmendar Sesungkur and other personalities were present on the occasion.
In his address, Minister Sesungkur underlined that the concept of risk-based supervision, which is the main focus of the workshop, is receiving considerable attention in the light of the multitude of risks confronting financial systems around the world. He pointed out that the process of regional integration calls for greater harmonisation of supervisory practice in Africa and thus, commended the FSC for organising the workshop at the most opportune time and place.
The Minister observed that the pace and dynamism with which the financial sector is evolving requires corresponding changes in the formulation and implementation of policies and the need of skilled people to effectively implement and evaluate these policies.
According to him Supervisors have a crucial role to play in the struggle to maintain the stability of financial systems. The strength of any financial institution, he underpinned, lies in its robust and prudential framework as well as in the effectiveness, capacity and skills of its Supervisor. The future-ready supervisor, he indicated, will need to be well-acquainted with technological advances as the market moves into more digitalisation and complex instruments. To this regard, capacity-building is a very useful tool to deal with the new and ongoing challenges in the sector, he said.
The Risk Based Supervision Framework, he underscored, enables supervisors to challenge the regulation of businesses and helps to providing a better service to customers by an enhanced understanding of the risks to which the sector, the country and the people are exposed. Risk-based supervision, he underlined, can be truly effective only when both the regulator and the industry come together as partners in this exercise.
Speaking about money laundering and terrorism financing risks, the Minister highlighted that Government’s commitment to combat money laundering and terrorism financing is unwavering and unequivocal. He indicated that over the years, Mauritius has built up a strong reputation as an International Financial Centre of integrity and excellence, and has established processes and institutions to implement a robust framework against money laundering and terrorist financing.
Risk-based supervision is a comprehensive framework that examines the weaknesses in corporate governance, risk management techniques and internal controls. It is a new approach to ensuring the financial health of economies with the advent of growing diversities and complexities of the insurance world, the wave of product innovation with complex plethora of risks, and interdependence of insurance business across borders.