Mauritius Enforces Action Against Banks for Breaches of Anti-Money Laundering and Combating the Financing of Terrorism Obligations

The Financial Intelligence Unit (FIU) in Mauritius has taken decisive action against banks in the country, imposing administrative sanctions and penalties for breaches of anti-money laundering and combating the financing of terrorism (AML/CFT) obligations.

Enforcement Actions

According to Section 19N of the FIAMLA, the FIU can impose a range of administrative sanctions, including:

• Public Censure: Imposed when a serious breach has occurred and awareness needs to be raised about regulatory standards and deter others from engaging in similar activities.
• Private Warning: Issued for breaches that do not warrant more severe sanctions.
• Administrative Penalties: Monetary fines proportional, effective, and dissuasive, ensuring fairness and proportionality based on the nature of the breach and mitigating circumstances.

Enforcement Directions

The FIU has issued enforcement directions to reporting persons, requiring them to:

• Update policies and procedures
• Draw up an action plan to address deficiencies found during inspections

Compounding Offences

In addition, the FIU has compounded offences committed under the FIAMLA and the UN Sanctions Act, allowing reporting persons to pay a fine instead of facing prosecution.

Commitment to Compliance

The FIU’s enforcement actions demonstrate its commitment to ensuring compliance with AML/CFT obligations in Mauritius and deterring non-compliant behavior. The agency will continue to monitor reporting persons’ compliance and take appropriate action where necessary.

By enforcing these sanctions, the FIU aims to promote a culture of compliance among financial institutions and protect the integrity of the Mauritian financial system.