Letter to BS: Verification of investment inflow to prevent illegal funding

This refers to your article “India-focused funds under Mauritius lens” (April 17). The verification of the sources of funds originating from foreign economies (also read portfolio investors) and flowing into a national system is as important as monitoring their external movement from the country of origin. Further the authenticity of the fund movement within a country will additionally ensure continuous monitoring of the funds trail not only within the country of origin but also globally. Illegal investments have social repercussions like terrorism and smuggling. 

A background comparison in the inflow of investment has thus to be made by Mauritius along the lines of know your customer norms currently prevailing in India. This will help it prevent illegal funding by ensuring greater fund supervision in interactions with the foreign regulators. A stringent verification of investment inflow will, as a consequence. also enhance the reputation of Mauritius, and shed its image as a tax haven, providing better confidence to the international community.

C Gopinath Nair, Kochi

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