Financial Crime World

Mauritius Moves to Protect Integrity of Financial System

In an effort to combat money laundering, terrorist financing, and the financing of proliferation, the Financial Action Task Force (FATF) has called upon all countries to effectively implement measures in their national systems. Mauritius is no exception.

Strengthening Anti-Money Laundering and Combating the Financing of Terrorism Regime

The country’s legal framework has been amended to strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) regime. The Financial Intelligence and Anti-Money Laundering Act 2002 (as amended), along with other relevant legislation, provides a robust framework for preventing money laundering and terrorist financing.

Key Legislation

The main pieces of legislation relating to money laundering in Mauritius are:

  • Financial Intelligence and Anti-Money Laundering Act 2002 (as amended)
  • Financial Intelligence and Anti-Money Laundering Regulations 2018 (as amended)
  • Financial Intelligence and Anti-Money Laundering (Registration of Reporting Persons) Regulations 2019
  • Part VIIIA of the Banking Act 2004
  • Prevention of Corruption Act 2002

Money Laundering Offences

Money laundering offences in Mauritius relate to the proceeds of crime generally. The Financial Intelligence and Anti-Money Laundering Act defines money laundering as an offence under Part II of the Act, which includes transactions involving property derived or realized from any crime.

Limitation on Payment in Cash and Exempt Transactions

Section 5 of the Financial Intelligence and Anti-Money Laundering Act imposes a limitation on payment in cash, with transactions exceeding 500,000 rupees prohibited altogether, except for exempt transactions. These exempt transactions include:

  • Transactions between banks, financial institutions, and customers, where the transaction does not exceed an amount commensurate with lawful activities
  • Established customer of the bank or financial institution

Consequences of Non-Compliance

Non-compliance with these regulations can result in serious consequences, including:

  • Fines
  • Imprisonment
  • The Bank may also issue guidelines, directives, or instructions to financial institutions to prevent money laundering and terrorist financing, failure to comply with which is punishable by law.

Conclusion

The Mauritian government’s efforts to strengthen its AML/CFT regime are a significant step towards protecting the integrity of the financial system and combating threats such as money laundering, terrorist financing, and the financing of proliferation.