Financial Crime World

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Mauritius Cracks Down on Money Laundering, Terrorist Financing with Robust Legislative Framework

In a bid to combat money laundering and terrorist financing, Mauritius has implemented a comprehensive legislative framework that adheres to international initiatives.

At the heart of the country’s efforts is the Financial Intelligence and Anti-Money Laundering Act 2002 (FIAMLA), which sets out the legal framework for combating money laundering and terrorist financing. This legislation is complemented by other key acts:

  • Prevention of Corruption Act 2002
  • Prevention of Terrorism Act 2002
  • Convention for the Suppression of the Financing of Terrorism Act 2003

Guidelines and Handbooks

To further strengthen its anti-money laundering and counter-terrorist financing (AML/CFT) framework, Mauritius has issued a range of guidelines and handbooks:

  • AML-CFT Handbook, which provides guidance on the application of AML/CFT measures by financial institutions

International Cooperation

Mauritius has established mechanisms for exchanging information with public sector agencies, international organizations, foreign supervisory institutions, and law enforcement agencies. The country has signed several memoranda of understanding (MOUs) with regulatory bodies:

  • Memorandum of Understanding between the Financial Services Commission (FSC) and the Financial Intelligence Unit (FIU), outlining cooperation in preventing money laundering and terrorist financing
  • MOUs with foreign supervisory bodies to facilitate mutual assistance and the exchange of information

Mutual Assistance

The FSC forwards any information on potential money laundering offenses or suspicious transactions to the FIU, as required by Section 22 of the FIAMLA. Foreign authorities can request assistance from Mauritius’ Attorney General in relation to serious offenses under the Mutual Assistance in Criminal and Related Matters Act 2003.

FSAP Assessment

Mauritius has voluntarily undergone Financial Sector Assessment Programme (FSAP) exercises conducted by the International Monetary Fund-World Bank:

  • 2003: Evaluation of the country’s financial sector’s strengths, weaknesses, and vulnerabilities to macroeconomic shocks
  • 2007: Review of the country’s AML/CFT framework

Continuous Improvement

The FSC continually reviews its AML/CFT regulatory framework to meet new standards set out by international organizations, such as:

  • International Organisation of Securities Commission (IOSCO)
  • International Association of Insurance Supervisors (IAIS)

Mauritius is an active member of the:

  • Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG)
  • Financial Action Task Force (FATF), committed to implementing FATF recommendations regionally.

Investor Protection

Investors in Mauritius can rest assured that the FSC ensures proper dissemination of investor alerts and warnings from international bodies, such as IOSCO and other regulatory bodies. These alerts typically refer to entities that are not authorized to provide investment services from the relevant jurisdiction.

By adhering to these international standards and best practices, Mauritius has established a robust framework for combating money laundering and terrorist financing, providing a secure and trustworthy environment for investors.