Mauritius Introduces Stringent AML and KYC Requirements for Financial Institutions
Port Louis, Mauritius - The Mauritian government has introduced new regulations to strengthen the country’s fight against money laundering and terrorist financing. As part of these measures, financial institutions are now required to implement robust Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures to verify the identity of their customers.
Document Verification
According to the new regulations, financial institutions must verify the identity of their customers using a range of documents, including:
- Passports
- Driving licenses
- National identity cards
The verification process involves checking for security features such as:
- Holograms
- Tapered edges
- Doctored elements
- Form inconsistencies
- Document expiration
- MRZ (Machine Readable Zone)
- Reflected colors
- Microprinting
Timing of Verification
Identity verification is not a one-time process, but rather an ongoing requirement that must be applied in multiple instances, including:
- Onboarding new customers
- Processing transactions
Financial institutions are required to apply AML and KYC procedures based on the level of risk associated with each customer.
Politically Exposed Persons (PEPs) and Enhanced Due Diligence
As part of the enhanced due diligence requirements, financial institutions must determine if their customers are:
- Politically Exposed Persons (PEPs)
- Hold public office
- Exhibit a higher-risk profile
Shufti Pro’s AML Screening service provides a solution for this requirement, screening an individual’s selected ID attributes against watchlists of global regulatory authorities and domestic databases.
Reliance on External Services
Mauritian regulations allow financial institutions to seek the services of third-party providers to apply measures of due diligence. However, they must:
- Collect all due diligence information from these third-party providers without undue delay
- Remain liable for maintaining compliance with AML and KYC obligations
Record Retention
Financial institutions are required to retain data for not less than seven years as part of their AML and KYC obligations for due diligence. They are also liable to collect necessary information from third-party providers without undue delay.
The new regulations aim to enhance the country’s reputation as a financial hub while ensuring that its financial institutions are compliant with international standards against money laundering and terrorist financing.