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Mauritius Enhances Anti-Money Laundering and Combating the Financing of Terrorism Framework
Port Louis, Mauritius - In a bid to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) framework, Mauritius has amended several key laws and regulations.
Enhanced Follow-Up Procedures
According to a recent report by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), Mauritius was placed under enhanced follow-up procedures following a mutual evaluation. As a result, the country is required to submit bi-annual reports on its progress in implementing the recommended actions contained in the Mutual Evaluation Report (MER).
New Laws and Regulations
To meet the Financial Action Task Force (FATF) requirements, Mauritius has enacted several new laws and regulations, including the Anti-Money Laundering and Combating the Financing of Terrorism and Proliferation Act 2019. This legislation aims to address threats to international peace and security by amending various enactments, including the Companies Act, Banking Act, and Financial Services Act.
Repeal of Part 2 of the First Schedule
The new law has also repealed Part 2 of the First Schedule of the Financial Intelligence and Anti-Money Laundering Act (FIAMLA), which previously listed countries where overseas financial intelligence units are constituted. Instead, it now requires members of relevant professions or occupations to comply with applicable provisions of FIAMLA and related rules, regulations, and guidelines when undertaking certain transactions.
Ratification of AML/CFT Conventions
Mauritius has also ratified several AML/CFT conventions, including the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (Vienna Convention), the United Nations Convention against Transnational Organised Crime (Palermo Convention), and the International Convention for the Suppression of the Financing of Terrorism.
Risk-Based Approach
To effectively manage money laundering/terrorist financing risks, casino and gaming house operators must adopt a risk-based approach. This involves regular assessments of risks, identification of red flags and typologies, and implementation of proportionate controls and monitoring measures.
Key Elements
- Regular assessments of risks
- Identification of red flags and typologies
- Implementation of proportionate controls and monitoring measures
Risk Categories
The four risk pillars within the gambling and gaming industry are:
- Country or geographic risk
- Customer risk
- Transaction risk
- Products and service risk
By applying these risk categories to customers and situations, operators can devise AML/CFT policies and procedures that accurately reflect their assessments. This will enable them to subject customers to proportionate controls and monitoring measures, reducing the risk of money laundering and terrorist financing.
Conclusion
Overall, Mauritius’ efforts to enhance its AML/CFT framework demonstrate its commitment to combating financial crimes and protecting the integrity of the financial system.