Financial Crime World

Mauritius Strengthens AML/CFT Regime to Meet International Standards

Port Louis, Mauritius - In an effort to adapt to new international standards and enhance the financial sector’s resilience, the government of Mauritius has taken significant steps to strengthen its Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regime.

Background

In 2002, an IMF/World Bank mission conducted a detailed assessment of Mauritius’ AML/CFT regime, identifying weaknesses that needed to be addressed. In response, the government passed the Anti-Money Laundering (Miscellaneous Provisions) Act in 2003, which aimed to remedy these deficiencies.

Key Amendments

The Act made several key amendments to existing legislation, including:

  • The Financial Intelligence and Anti-Money Laundering Act of 2002
  • The Banking Act of 1988
  • The Financial Services Development Act of 2001

These changes allowed for the disclosure of information to the Financial Intelligence Unit (FIU) and eliminated impediments to the transmission of information by supervisory authorities to the FIU.

Expanded Supervisory Mandate

The Act also expanded the supervisory mandate of the:

  • Financial Services Commission (FSC)
  • Bank of Mauritius (BoM)

Requiring them to ensure that their respective licensees complied fully with AML/CFT preventive measures.

National Committee for Anti-Money Laundering and Combating Terrorist Financing

The Act formalized the status of the National Committee for Anti-Money Laundering and Combating Terrorist Financing, which had previously operated on an informal basis.

Banking Act of 2004

In 2004, the government passed a new Banking Act, which implemented recent international developments in prudential supervision of banks. The act adhered to international standards set out by the Basel Committee on Banking Supervision (BCBS) in its 25 Core Principles for Effective Banking Supervision.

Enhanced Consumer Protection

The BoM acquired new powers of regulation and supervision, including:

  • Authority to impose fines for breaches of banking rules and regulations
  • Role in protecting consumers of banking services enhanced with the introduction of an Ombudsman for banking services

International Cooperation

Mauritius has been actively participating in central bank fora at global and regional levels and is a member of the Offshore Group of Banking Supervisors (OGBS). The new legislation builds clear gateways for exchange of information with local institutions engaged in financial supervision and with foreign supervisors.

National Committee’s Role

The National Committee for Anti-Money Laundering and Combating Terrorist Financing has been instrumental in ensuring coordination in law enforcement efforts and policy-making. It formulates the national strategy and advises government on policy and legislative actions.

Recognition by International Organizations

Mauritius’ commitment to AML/CFT compliance has been recognized by international organizations, including:

  • Financial Action Task Force (FATF)
  • Egmont Group

The country’s financial sector is now better equipped to withstand the risks associated with money laundering and terrorist financing, ensuring a more stable and secure environment for its citizens.

Contact:

  • Name: [Name]
  • Email: [email]
  • Phone: [phone number]