National Payment Systems Act 2018 (Act 17 of 2018)

The National Payment Systems Act 2018 (Act 17 of 2018), which came into operation on 31 January 2019, is the principal statute establishing the legal and regulatory framework for the regulation, oversight and supervision of payment systems in Mauritius. It conferred on the Bank of Mauritius (BoM) express statutory powers over payment systems, payment service providers and electronic money, replacing a previously fragmented approach and supporting the growth of digital payments in the jurisdiction. Scope and applicability: the Act applies to operators of payment systems, payment service providers and issuers of electronic money operating in or from Mauritius. It empowers the BoM to authorise and license participants, to designate payment systems, to oversee clearing and settlement, and to make regulations, guidelines and directives. The Act distinguishes the operation of payment systems (authorisation) from the provision of payment services and the issuance of e-money (licensing). Core obligations: participants must obtain the requisite authorisation or licence from the BoM and satisfy ongoing requirements as to minimum capital, fit-and-proper management, governance, risk management, technology and security, and AML/CFT compliance. Issuers of electronic money must safeguard customer funds, holding them in a trust account, segregated from the issuer's own funds, with reconciliation and traceability, and an e-money licensee may not provide credit out of those funds. The Act provides for settlement finality and the irrevocability of payment instructions, protecting completed settlements from being unwound on a participant's insolvency. Supervision and enforcement: the BoM oversees and inspects participants, may issue directives and impose conditions, and may suspend or revoke an authorisation or licence for breach. Operating a payment system or providing payment services without authorisation is an offence. The Act is supplemented by the National Payment Systems (Authorisation and Licensing) Regulations 2021, which detail the categories of payment service provider, application procedures, capital thresholds and reporting obligations. Together they form the BoM-administered backbone of Mauritius's payments and e-money regime.

1. 1Establishes the Bank of Mauritius as regulator, overseer and supervisor of payment systems, payment service providers and e-money
2. 2Distinguishes authorisation (operating payment systems) from licensing (payment services and e-money issuance)
3. 3Requires minimum capital, fit-and-proper management, governance, risk-management, security and AML/CFT compliance
4. 4E-money issuers must safeguard customer funds in a segregated trust account with reconciliation; no credit from e-money funds
5. 5Provides for settlement finality and irrevocability of payment instructions, protected against insolvency
6. 6Empowers BoM to make regulations, issue directives, inspect, and suspend or revoke authorisations/licences; unlicensed operation is an offence