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Financial System Integrity: Mauritius Takes Steps to Combat Money Laundering

In its efforts to ensure the integrity of the global financial system, the Financial Action Task Force (FATF) has called upon all countries to effectively implement measures to combat money laundering, terrorist financing, and the financing of proliferation. To this end, the Mauritian government has put in place a robust legal framework to prevent and detect such illegal activities.

Key Legislation

The main pieces of legislation relating to money laundering in Mauritius are:

  • The Financial Intelligence and Anti-Money Laundering Act 2002 (as amended)
  • The Financial Intelligence and Anti-Money Laundering Regulations 2018 (as amended)
  • The Financial Intelligence and Anti-Money Laundering (Registration of Reporting Persons) Regulations 2019
  • Part VIIIA of the Banking Act 2004
  • The Prevention of Corruption Act 2002

These laws provide for the establishment of a financial intelligence unit, the offences of money laundering, reporting of suspicious transactions, and set out preventive measures to be adopted by financial institutions.

Money Laundering Offences

Under the FIAMLA, money laundering is defined as an offence involving the proceeds of crime. The law prohibits engaging in transactions that involve property derived from criminal activities, receiving or possessing such property, concealing or disguising its true nature, and failing to take measures to prevent use by a person to commit or facilitate the commission of a money laundering offence.

Conspiracy to Commit Money Laundering

The law also criminalizes conspiracy to commit money laundering, which is defined as agreeing with one or more other persons to commit an offence specified in section 3(1) and (2).

Limitation on Payment in Cash and Exempt Transactions

Section 5 of the FIAMLA imposes a limitation on payment in cash, prohibiting transactions in excess of 500,000 rupees unless exempt. The law also provides for exempt transactions between financial institutions and their customers, subject to certain conditions.

Conclusion

In conclusion, Mauritius has taken significant steps to ensure the integrity of its financial system by implementing robust legislation to prevent and detect money laundering, terrorist financing, and the financing of proliferation.