Financial Crime World

Financial Integrity Under Scrutiny: Mauritius Takes Steps to Implement FATF Recommendations

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Mauritius has been taking steps to strengthen its legal framework and regulatory regime in response to calls from the Financial Action Task Force (FATF) to effectively combat money laundering, terrorist financing, and proliferation financing.

Mauritius has a comprehensive legal framework in place to combat money laundering, terrorist financing, and proliferation financing. The key pieces of legislation include:

  • 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

The Financial Intelligence and Anti-Money Laundering Act defines money laundering as an offence that involves engaging in a transaction with property that is derived or realized from any crime. The act also criminalizes:

  • Failure to take reasonable measures to prevent money laundering and terrorist financing
  • Conspiracy to commit the offence of money laundering

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, prohibiting transactions exceeding 500,000 rupees, except for certain exempt transactions. These exempt transactions include:

  • Transactions between financial institutions, banks, and customers that are commensurate with lawful activities

Implementation and Enforcement

The Mauritian authorities have taken steps to implement and enforce these measures, including:

  • Establishment of a Financial Intelligence Unit
  • Issuance of guidelines, directives, or instructions to financial institutions
  • Imposition of severe penalties for non-compliance, including fines and imprisonment

Conclusion

In conclusion, Mauritius has taken significant steps to strengthen its legal framework and regulatory regime to combat money laundering, terrorist financing, and proliferation financing. The country’s efforts are aimed at ensuring the integrity of its financial system and complying with the FATF Recommendations.