FBC Holdings clears KYC hurdle in Mauritius

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PHILLIMON MHLANGA

FBC Holdings this week revealed that the financial services group has finally fulfilled most conditions for it to set up an offshore reinsurance unit in Mauritius as part of efforts to circumvent domestic foreign currency problems.

Recently, Business Times reported that FBC Holdings had deferred plans to set up the unit due to strict conditions attached.

FBC Holdings group spokesperson, Priscillah Sadoma, this week told this publication that the listed financial services provider has finally provided all the information requested by the regulator in Mauritius, an island nation in the Indian Ocean.

These conditions, included the rigorous know your customers (KYC) requirements.

Sadomba was optimistic FBC would now be able to be granted a licence to operate in Mauritius.

“We are expecting the licence any time now as we have provided all the information requested by the regulator in Mauritius,” Sadomba said.

“The delay was due to the rigorous KYC requirements which took more time than we had anticipated at the time of lodging our application.”

FBC Holdings’ initial plan was to operationalise the proposed unit in Mauritius before the end of June this year.

But, the group faced difficulties in clearing tough conditions set by the regulator in Mauritius.

The establishment of the reinsurance unit in Mauritius, FBC Holdings CEO John Mushayavanhu said, was meant to skirt foreign currency problems in the country. Acute foreign currency shortages have ravaged Zimbabwe’s economy.

FBC Holdings already has shortterm and re-insurance operations in Zambia, Malawi, Kenya, Uganda and Sudan. The group’s insurance units are FBC Reinsurance and FBC Insurance Company (formerly Eagle Insurance Company Limited).

In its financial results for the six months to June 30 2018, FBC reported a strong set of results, particularly for the bank.

Interest income went up by 18,7 percent during the period under review to $38,70 million from $32,60 million recorded in the corresponding period in the prior year.