Financial Crime World

Mauritius Undertakes National Risk Assessment to Combat Money Laundering and Terrorist Financing

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Introduction

The Government of Mauritius has successfully conducted a national risk assessment (NRA) exercise to devise an effective risk-based anti-money laundering (AML) and combating the financing of terrorism (CFT) framework. The NRA was undertaken in collaboration with the Financial Action Task Force (FATF), a global standard-setting body for AML/CFT.

Objectives

The NRA aimed to:

  • Identify, assess, and prioritize money laundering and terrorist financing risks associated with various sectors, including financial institutions, designated non-financial businesses and professions (DNFBPs), and non-profit organizations.
  • Evaluate the country’s legal and regulatory framework, as well as its supervisory and enforcement mechanisms.

Findings

The NRA identified several key areas for improvement, including:

  • Strengthening the country’s AML/CFT legal and regulatory framework
  • Implementing a comprehensive risk-based supervision framework
  • Enhancing national coordination and cooperation among relevant authorities

Next Steps

The findings of the NRA will inform the development of an updated AML/CFT strategy for Mauritius, which will focus on eight core themes:

  • Strengthening the AML/CFT legal and regulatory framework
  • Implementing a comprehensive risk-based supervision framework
  • Enhancing transparency of legal persons and arrangements
  • Other key areas identified in the NRA

Commitment to Global Standards

Mauritius has committed to implementing the FATF’s 40 Recommendations, which provide a global standard for combating money laundering, terrorist financing, and proliferation of weapons of mass destruction. The country is also a member of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), which aims to promote regional cooperation in AML/CFT efforts.

Conclusion

The success of the NRA exercise demonstrates Mauritius’ commitment to maintaining a robust AML/CFT framework, which is essential for protecting the integrity of its financial system and preventing the misuse of its economy by criminals.