Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT)

Overview of Non-Compliance Risks

Conduct Not in Best Economic Interests or Damaging Reputation

• Conduct that is not in the best economic interests of Mauritius.
• Conduct that damages the reputation of Mauritius.

These types of non-compliance risks can have severe consequences for financial institutions operating in Mauritius. The Financial Services Commission (FSC) will take into account the Handbook’s guidelines when assessing the level of compliance with the FIAMLA and FIAML Regulations 2018.

Lack of Fitness and Propriety

• A lack of fitness and propriety among employees or directors can compromise an institution’s ability to prevent money laundering and terrorist financing.
• This includes, but is not limited to, inadequate training, poor risk management practices, and a failure to identify suspicious transactions.

Global Standards for Anti-Money Laundering/Combating Financing of Terrorism (AML/CFT)

The Financial Action Task Force (FATF) Recommendations are recognized as global standards in respect of AML/CFT. The FATF’s guidance is crucial for financial institutions worldwide, as it provides a framework for implementing effective measures to prevent money laundering and terrorist financing.

Compliance Culture

Board and Senior Management Responsibilities

• To ensure that an institution’s systems and controls are appropriately designed and implemented.
• To effectively operate these systems and controls to reduce the risk of being used in connection with money laundering/terrorist financing (ML/TF).

By prioritizing a strong compliance culture, institutions can protect their reputation, maintain customer trust, and contribute to the global effort to combat financial crimes.