Mauritius: Bramer Bank loses licence after large scam

Apr 08, 2015

The finance minister assured that depositors "will not lose a penny."

The Central Bank of Mauritius has withdrawn with immediate effect the licence of Bramer Banking Corporation Ltd (BBCL) on April 2 after the discovery of a vast scam.

"A Ponzi system was discovered in the Bramer Banking Corp Ltd", said the Mauritian Prime Minister Anerood Jugnauth.

"We had to act quickly because we are in the presence of a Ponzi scheme about 25 billion rupees (€637 million)," he added, quoted by the Ecofin agency.

The Ponzi scheme is a fraudulent financial structure which consists in remunerating customer investments by funds provided by new entrants.

Mauritius's minister of finance Vishnu Lutchmeenaraidoo said that the situation is "unprecedented", and that the priority is to protect the interests of those who have deposited money in this bank.

"The government wants to reassure the 30,000 people who have accounts at the Bramer Bank, they will not lose a penny," he insisted, quoted by L'Express de Maurice.

The Minister also informed customers of the Bramer Bank that negotiations are underway to find other solutions.ADNFCR-2976-ID-801782684-ADNFCR