Financial Crime World

Mauritius Takes Significant Steps to Combat Money Laundering and Terrorist Financing

Mauritius has taken a major step forward in strengthening its efforts against money laundering (ML) and terrorist financing (TF), with the implementation of several key measures.

National Risk Assessment (NRA)

The NRA, launched in January 2017 and updated on August 29, 2019, is a comprehensive assessment of the ML and TF risks faced by Mauritius. The report provides valuable guidance to policymakers and financial institutions, enabling them to prioritize efforts and allocate resources effectively.

Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) Unit

As part of its commitment to combating ML and TF, Mauritius has set up a dedicated AML/CFT Unit within the Supervision Department. This unit will oversee the implementation of AML/CFT measures applicable to licensees, including:

  • Banks
  • Non-bank financial institutions
  • Designated non-financial businesses and professions
  • Other regulated entities

Risk-Based Methodology for Supervising ML/TF Risks

Mauritius has also developed a risk-based methodology for supervising ML/TF risks, which will enable supervisors to focus on high-risk areas and ensure that resources are allocated effectively.

Enhanced Cooperation

The country has enhanced cooperation at the domestic, regional, and international levels, fostering collaboration with relevant stakeholders to combat financial crime. This includes:

  • Domestic: Improved coordination between government agencies and regulatory bodies
  • Regional: Increased cooperation with neighboring countries and regional organizations
  • International: Enhanced relationships with global partners and organizations, such as the Financial Action Task Force (FATF)

Training Program and Industry Outreach

The Financial Services Commission (FSC) has launched a training program for staff and industry outreach initiatives to promote awareness and understanding of AML/CFT requirements among licensees.

National Strategy 2019-2022

The National Strategy sets out the country’s approach to tackling ML, TF, and proliferation financing (PF) threats over the next three years. The strategy is built on the findings of the NRA and the gaps identified in the AML/CFT Mutual Evaluation Report (MER).

Core Themes

The eight core themes of the National Strategy aim to strengthen Mauritius’ ability to prevent, detect, and deter ML and TF, as well as proliferation financing. These themes include:

  • Strengthening the AML/CFT legal and regulatory framework
  • Implementing a comprehensive risk-based supervision framework
  • Strengthening the process for detecting and disrupting ML/TF threats
  • Enhancing national coordination and cooperation
  • Consolidating capacity building, training, and awareness raising programs
  • Enhancing transparency of legal persons and arrangements
  • Implementing an effective AML/CFT data collection system in all relevant competent authorities
  • Enhancing regional and international cooperation

Conclusion

These measures demonstrate Mauritius’ commitment to combating financial crime and its efforts to meet international obligations set by the FATF. The country is taking a proactive approach to addressing ML, TF, and proliferation financing threats, and this initiative will help to strengthen its position as a leading financial center in the region.