In 2007, The Banking Act in Mauritius was rectified to supply for Islamic banking activities and the Bank issued the first Islamic banking license in October 2009 to supply for the nearly 18 % of the 1.2 million Mauritian Muslim population. Establishing a sustainable Islamic retail banking model that is productive to service just over 200,000 Muslims in the Indian Ocean island is a big duty and one that would have been entirely impracticable if it were not for the Bank of Mauritius’s plans to introduce short term liquidity instruments, according to Mr. Rundheersing Bheenick, who is the embattled governor of the Bank of Mauritius.
Islamic Banking today is one of the quickest growing sections in the financial arena worlwide, growing at an guessed rate of 15 to 20 % each year. There are presently more than 300 Islamic Financial Institutions (IFIs) worldwide, performing in nearly 55 countries.
Mauritius supplies a contributive atmosphere for the provision of Islamic finance. It is already a mature and well adjusted IFC with 15 years of experience in the provision of conventional Banking and Financial services. Mauritius fully supports international initiatives (FATF, Basel, IOSCO, IAIS) focused on keeping the legal power away from being used for money laundering (legitimizing) and terrorist financing.
Mauritius is already well impregnated with the Islamic culture and Islamic Banking and finance is not an unfamiliar concept, with a population of 15% Muslims. In fact, Mauritius has had a Waqf Act since 1941. Further lawmaking has been presented to admit more advanced product within the financial Services prospect. Suitable Banking legislation has been rectified to allow for the advancement of Alternative Financial Services like Islamic Financial Services which is a quick growing activity with large export capacity.