Financial Crime World

Mauritius Steps Up Compliance with Anti-Terrorist Financing Standards

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Mauritius has made significant strides in combating money laundering, terrorism financing, and proliferation financing by conforming to international best practices. The island nation has been assessed as “Compliant” or “Largely Compliant” with all 40 Financial Action Task Force (FATF) Recommendations, solidifying its position as a reputable jurisdiction.

Background

Mauritius was placed on the FATF Grey List in February 2020 due to concerns over its anti-money laundering and combating financing of terrorism (AML/CFT) regime. The government responded by making a high-level political commitment to strengthen its AML/CFT regime, receiving technical assistance from various international organizations and development partners.

Progress

Mauritius’ progress has been tracked through enhanced Follow-Up Reports (FURs), which have shown steady improvement. The latest FUR in 2022 reported Mauritius as “Largely Compliant” with FATF Recommendations, a significant jump from its initial assessment in 2018.

Exit from the Grey List

Mauritius’ exit from the FATF Grey List in October 2021, ahead of schedule, is a testament to its political determination to sustain AML/CFT reforms. The country has since been removed from the United Kingdom’s and European Union’s lists of high-risk third countries.

Ongoing Efforts

Despite exiting the grey list, Mauritius continues to prioritize anti-money laundering efforts. Recent initiatives include:

  • Completion of a risk assessment exercise on virtual assets and service providers, leading to the enactment of comprehensive legislation on virtual assets and initial token offerings.
  • Conducting its second National Risk Assessment to identify ML/TF risks associated with various sectors.
  • Introduction of an AML/CFT (Miscellaneous Provisions) Bill to address any gaps identified during the assessment.

Capacity Building and Regional Cooperation

Mauritius remains committed to:

  • Capacity building, training, and awareness-raising programs, collaborating with development partners and international institutions.
  • Enhancing regional and international cooperation, sharing its experience and lessons learned in tackling illicit financial flows with other nations.