Financial Crime World

Financial System Integrity: Mauritius Takes Steps to Combat Money Laundering and Terrorist Financing

Mauritius has taken significant steps to strengthen its financial system’s integrity by implementing measures to prevent money laundering, terrorist financing, and the financing of proliferation. The country has committed to adhering to the Financial Action Task Force (FATF) Recommendations, a global standard for combating these threats.

Legislative Framework

Mauritius has established a robust legislative framework to combat money laundering and terrorist financing. The Financial Intelligence and Anti-Money Laundering Act 2002 (as amended), along with its regulations, sets out the offenses of money laundering, reporting of suspicious transactions, and preventive measures for financial institutions.

Key Provisions

Money Laundering Definition

The Act defines money laundering as any transaction involving property that is derived or realized from crime, including:

  • Concealing or disguising its true nature, source, location, disposition, movement, or ownership.
  • Conspiracy to commit money laundering offenses.

Limitations on Payment in Cash and Exempt Transactions

To prevent the laundering of proceeds of crime, Mauritius has imposed a limitation on payment in cash. Transactions exceeding 500,000 rupees are prohibited, except for exempt transactions between:

  • Banks
  • Financial institutions
  • Customers

Exemptions include:

  • Transactions between the Bank of Mauritius and other persons.
  • Deposits into or withdrawals from customer accounts.

Penalties for Non-Compliance

Non-compliance with these measures can result in severe penalties, including:

  • Fines not exceeding one million rupees
  • Imprisonment

The Prevention of Corruption Act 2002 also empowers an Independent Commission Against Corruption to investigate money laundering offenses.

Conclusion

Mauritius’s efforts to strengthen its financial system’s integrity demonstrate the country’s commitment to tackling money laundering, terrorist financing, and the financing of proliferation. By implementing these measures, Mauritius is working towards a safer and more secure financial environment for its citizens and international partners.