Mauritius Takes Significant Steps to Combat Money Laundering and Terrorist Financing

The government of Mauritius has taken major steps to strengthen its financial regulatory framework by implementing several amendments to its laws and regulations aimed at combating money laundering (ML) and terrorist financing (TF).

Strengthening Regulations in the Real Estate Sector

The Real Estate Agent Authority Act has been amended to require real estate agents to register with the Financial Intelligence Unit (FIU) within five working days of registration. This move is designed to prevent ML and TF activities in the real estate sector.

Enhanced Sanctions Regime

The United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019 has been amended to empower the National Sanctions Secretariat to better conduct its duties. The amendment requires any person who holds or controls assets of a designated party or listed party to notify the secretariat immediately.

Improved Asset Recovery

The Prevention of Corruption Act 2002 has been amended to extend the validity period of attachment orders from 60 days to six months, making it easier for authorities to recover stolen assets. Furthermore, the Independent Commission Against Corruption (ICAC) has been empowered to sell recovered assets and transfer the proceeds to an account managed by ICAC.

Enhanced Transparency in the Non-Profit Sector

The amendments also introduce a legal requirement for charitable organizations to assess the beneficial ownership of their beneficiaries and donors, and to maintain records of all fund movements over a seven-year period. This move is designed to prevent ML and TF activities in the non-profit sector.

Increased Reporting Requirements for Company Service Providers

Company service providers are now required to report suspicious transactions to the FIU within five working days of becoming aware of them.

International Recognition

The Financial Action Task Force (FATF) has praised Mauritius for making significant progress in implementing its action plan to combat ML and TF. The country was recently removed from the FATF’s list of jurisdictions that require close monitoring, demonstrating its commitment to meeting international standards.

Experts’ Insights

Mauritius’ efforts have been recognized as a step in the right direction by experts, who note that the country still needs to focus on improving its effectiveness in combating ML and TF.