Financial Crime World

Mauritius’ AML/CTF Supervisor Highlights Best Practices for Compliance

The Financial Intelligence Unit (FIU), Mauritius’ anti-money laundering and combating the financing of terrorism (AML/CFT) supervisor, has outlined key best practices for Reporting Entities to ensure compliance with the Financial Intelligence and Anti-Money Laundering Act (FIAMLA) regulations.

Who are Reporting Entities?

According to the FIU, Reporting Entities include:

  • Professional accountants
  • Law firms
  • Attorneys
  • Notaries
  • Dealers in jewelry
  • Real estate agents
  • Company service providers
  • Banks
  • Financial institutions
  • Cash dealers
  • And others

These entities are required to:

  • Conduct customer due diligence before and during business relationships or transactions
  • Identify beneficial owners and politically exposed persons (PEPs)
  • Keep records of customer transactions
  • Identify money laundering and terrorist financing risks
  • Submit regulatory reports
  • Register with the FIU

Reporting Suspicious Transactions

The FIU emphasizes that Reporting Entities must report suspicious transactions to the unit. This includes submitting Suspicious Transaction Reports (STRs) within five working days of becoming aware of a suspicious transaction. Notably, cash transactions exceeding Rs 500,000 are not allowed and must be reported as suspicious if they occur.

Simplified Customer Due Diligence

In cases where lower risks have been identified by Reporting Entities, Simplified Customer Due Diligence (SDD) may be applied if the low risk is consistent with the national risk assessment of the relevant supervisory authority or regulatory body. However, Reporting Entities must ensure that their AML/CFT measures are effective and proportionate to the risks they pose.

Best Practices for Compliance

The FIU’s guidelines underscore the importance of:

  • Robust customer due diligence
  • Risk assessments
  • Reporting obligations

By following these best practices, entities can help prevent money laundering and terrorist financing while also ensuring compliance with local regulations.