Three major banks in Mauritius, HSBC, MCB, and SBM, are facing criminal charges for allegedly violating the Financial Intelligence and Anti-Money Laundering Act (FIAMLA). The case dates back twenty years.
Magistrate Kevin Rangasamy of the Financial Crimes Division has ruled that the banks must stand trial. The banks are accused of accepting cash deposits exceeding Rs 350,000 from a French national residing in Mauritius named Stéphane Gérard Briand.
The charges include Limitation of Payment in Cash, with two charges against HSBC, eight against MCB, and six against SBM. The banks plead not guilty.
HSBC initially requested a halt to the trial, claiming the indictment dates back to 2014 and lacked necessary documents for defense. However, the magistrate found no evidence of crucial witnesses being unavailable.
The prosecution argued against benefitting from destroyed documents if information was not disclosed during the investigation. The banks claimed document destruction in compliance with the Banking Act 2004, but the magistrate found this did not mandate destruction after seven years.
The prosecution must prove the charges under the FIAMLA. There are concerns about missing evidence and delaying tactics by the banks. The Independent Commission Against Corruption began investigating in 2010 following a complaint, with the case reaching court in 2015.
Delays were attributed to the complexity of the investigation and waiting for a key legal decision from the Privy Council. The banks argued for a Permanent Stay of Proceedings, citing irreparable harm from the delay, but the magistrate disagreed.
Magistrate Rangasamy emphasised the importance of a fair trial, dismissing claims of abuse of process. The establishment of the Financial Crimes Division aimed to expedite cases like these.
It is crucial for the prosecution to present all evidence and for the defense to have a chance to prepare adequately. The case highlights the intersection of banking regulations and criminal proceedings, with significant implications for the banking sector in Mauritius.
The trial process will shed light on alleged financial misconduct and how banks handle illicit transactions. The outcome will have repercussions for financial institutions and their compliance with anti-money laundering laws. It is a high-profile case drawing attention to financial crimes and regulatory enforcement in the region.
Source: Le Mauricien
