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# [MAURITIUS] International Finance Centre: Mandatory ESG, modernised VCCs and 2027 FATF deadline
- URL: https://businessoi.media/en/maurice-centre-financier-international-esg-obligatoire-vcc-modernises-et-cap-sur-le-fatf-2027-en/
- Published: 2026-07-27T02:47:12.000Z
- Updated: 2026-07-27T02:47:12.000Z
- Description: The 2026-27 budget puts Mauritius' IFC on three priorities: preparing for the 2027 FATF review, modernising VCCs and mandating ESG. The financial sector grew +5% in 2025 and targets continued expansion.
- Author: Emmanuel TAOCHY
- Tags: Maurice, finance, Économie, Revue matinale, #en

The 2026-27 budget places Mauritius' International Finance Centre (IFC) on three priority tracks: preparing for the 2027 FATF mutual evaluation, modernising Variable Capital Companies (VCCs), and making ESG reporting mandatory. The financial services sector, which grew **+5%** in 2025, is presented as the engine of a transition toward a high-value economy.

## FATF 2027: preparation on multiple fronts

The Financial Action Task Force (FATF) mutual evaluation scheduled for 2027 dominates the regulatory agenda. The 2026-27 budget provides for a strengthened Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) framework, with enhanced oversight by the Financial Reporting Council (FRC). Mauritius was removed from the FATF «grey list» in 2022 — a decisive step for its international credibility. The 2027 review is the first major confirmation test.

For fund managers, family offices and investment structures based in Mauritius, the rigour of the AML/CFT framework is directly linked to access to European and Asian markets. Any downgrade in the FATF evaluation would have immediate knock-on effects on investment flows.

## VCC Act: simplifying investment structure conversion

The Variable Capital Companies Act amendment now allows the **conversion of Protected Cell Companies (PCCs) into VCCs**. This simplifies the process for asset managers wishing to migrate to the VCC structure — more flexible, more modern, and better recognised internationally — without having to liquidate and reconstitute their vehicles. A technical reform, but a strategic one: VCCs have become a central commercial argument for the Mauritian IFC since their introduction.

## Mandatory ESG: Mauritius shifts up a gear

The Financial Reporting Act now integrates **mandatory ESG reporting requirements** (Environment, Social, Governance) for a range of entities. ESG metric tracking and disclosure move from voluntary to regulatory. This aligns with the global trend of tightening non-financial transparency requirements, and responds to the growing expectations of European institutional investors for whom ESG has become an unavoidable allocation criterion.

On the digital front, the budget also supports **Open Banking** and the digital assets ecosystem, reinforcing Mauritius' fintech competitiveness. The International Financial Organisations Act is also modernised, alongside recognition of MINDEX Limited and MINDEX Clearing Limited as official market infrastructure.

## A growing sector, real geopolitical stakes

Mauritius' financial services sector now represents a significant share of the island's GDP. Its **+5% growth** in 2025 outperforms the broader economy. The government expects continued expansion driven by regulatory modernisation and digital transformation.

## Why this matters

For companies and investors in the region who use Mauritius as a structuring platform for investments into Africa, Asia or European markets, FATF compliance and ESG are not abstract constraints — they are access certificates to global markets. Mauritius is consolidating its status as the Indian Ocean's reference IFC.