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SBM Bank Rejects Appeal From Former CEO Following Major Disciplinary Probe
SBM Bank (Mauritius) Ltd has formalised the departure of its former chief executive and pledged a sweeping overhaul of its compliance frameworks following a criminal conviction for breaching anti-money laundering regulations.
In a robust statement issued on 13 February 2026, the bank’s board of directors, chaired by Rundheersing Bheenick, confirmed it has rejected an appeal by former CEO Prem Mungar.
Despite an appeal overseen by an independent committee led by Senior Counsel Me Nandkishore Ramburn, the board maintained its original decision, insisting that the principles of “natural justice and due process” were strictly observed throughout.
Judicial Blow and Regulatory Failures
The leadership shake-up comes as the institution reels from a guilty verdict delivered by the Intermediate Court.
The bank was found to have violated the Financial Intelligence and Anti-Money Laundering Act (FIAMLA) by accepting a cash transaction that exceeded statutory limits.
Acknowledging the “gravity” of the court’s decision, the board has committed to reinforcing internal controls to ensure strict adherence to regulatory requirements in the future.
Strategic Restructuring
Approximately six months after its reconstitution, the board is moving to fill critical vacancies within senior management.
The bank stated that these appointments are subject to “rigorous fit-and-proper assessments” to guarantee long-term integrity, even if the pace of recruitment is slowed by these stringent checks.
To bolster oversight in an increasingly digital landscape, the bank has appointed new directors with specialised expertise in:
- Information Technology
- Digital Risk Management
- Cyber Security
Ongoing Investigations
The bank is also facing scrutiny regarding historical conduct. Management confirmed it is monitoring ongoing probes by the Financial Crimes Commission.
These investigations involve bank officers and are linked to high-profile cases, including “Reward Money” and Dhyanavartam Ltd—the owner of the now-liquidated Maradiva Villas Resort & Spa.
The board’s latest communique appears aimed at projecting an image of transparency and rigour.
By establishing what it describes as a “safe, sound, and responsible” operational framework, SBM seeks to restore stability and meet the hardening expectations of both regulators and stakeholders.
Source: l’Express
