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Financial Sector Compliance: AML/CFT Handbook

The Financial Services Commission (FSC) has published a comprehensive handbook aimed at guiding financial institutions in Mauritius to implement effective Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) measures.

Effective Implementation

The handbook emphasizes that each financial institution must consider its own particular circumstances when implementing AML/CFT controls, taking into account factors such as size, nature, and complexity. The FSC encourages a risk-based approach, recognizing that not all financial institutions are created equal.

Failure to Comply

The FSC warns that failure to comply with the Financial Intelligence and Anti-Money Laundering Act (FIAMLA) and FIAML Regulations 2018 may result in regulatory action, including revocation of a license. The handbook highlights the importance of establishing an open and positive approach to compliance among all employees.

Compliance Culture

The FSC emphasizes that effective AML/CFT policies and procedures can only be delivered through partnership with the industry. Financial institutions are expected to ensure that they establish a culture of compliance, with the board and senior management taking responsibility for designing and implementing systems and controls.

Key Measures

Conducting risk assessments
Determining true customer identity and beneficial ownership
Monitoring transactions and relationships
Comparing expected activity against actual activity
Applying increased vigilance to high-risk transactions and relationships

The Human Element

The handbook also highlights the importance of the human element in AML/CFT control. It warns that a hierarchical approach within a business can hinder effective controls, emphasizing the need for employees at all levels to understand, follow, and enforce policies and procedures.

Conclusion

The FSC’s AML/CFT Handbook provides a comprehensive guide for financial institutions in Mauritius to implement effective measures against money laundering and terrorist financing. By adopting a risk-based approach and recognizing the importance of the human element, financial institutions can reduce their exposure to these risks and maintain public trust.

“FSC Warns Financial Institutions of AML/CFT Compliance Risks”
“Mauritius Moves to Enhance Financial Sector Transparency”
“Financial Intelligence Unit (FIU) to Play Key Role in AML/CFT Efforts”

Contact Us

For more information on the FSC’s AML/CFT Handbook or to inquire about compliance issues, please contact our editorial team at [insert contact information].