Financial Crime World

Mauritius Introduces Financial Sanctions Checklist to Combat International Threats

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The United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019 has come into effect in Mauritius, providing a legal framework for the government to implement targeted sanctions against individuals and entities listed by the UN Security Council.

Objectives of the Act

The act aims to combat threats to international peace and security, including:

  • Terrorism
  • Financing of terrorism
  • Proliferation of weapons of mass destruction

Regimes Established under the Act

The act establishes two regimes:

UN Regime

  • Financial prohibitions against listed individuals’ or entities’ funds or assets come into operation immediately
  • No need for a freezing order to be applied by the Secretary of Home Affairs

Domestic Regime

  • Need for a freezing order to be applied by the Secretary of Home Affairs
  • Only comes into effect after a person is listed under this regime

Financial Intelligence Unit (FIU) and Consolidated List

The FIU has published an explanatory note on the implementation of UN sanctions measures and given public notice of the Consolidated List. The list includes parties against whom targeted sanctions have been imposed, including those suspected of terrorism or financing terrorism.

Reporting Obligations

Reporting persons, such as financial institutions, lawyers, and real estate agents, are required to:

  • Regularly consult the consolidated list
  • Take immediate action with respect to any changes brought thereto
  • Report any matches with listed parties
  • Submit suspicious information to the FIU

Obligations on Reporting Persons

Reporting persons must also:

Reporting Obligations

  • Verify whether a listed party’s details match their customer’s particulars
  • Identify funds or assets owned by the customer
  • Make a report to the National Sanctions Secretariat and their AML/CT supervisor

Internal Controls

  • Implement internal controls and procedures to ensure effective compliance with the act

Consequences of Non-Compliance

Failure to comply with the act is an offence.

Resources for Reporting Persons

The FIU has produced a video presentation explaining the main provisions of the act, which can be downloaded from its website.

Conclusion

The implementation of financial sanctions in Mauritius aims to prevent the proliferation of weapons of mass destruction, combat terrorism and financing of terrorism, and uphold international peace and security. The government urges all reporting persons to familiarize themselves with the requirements of the act and comply with its provisions to avoid any legal consequences.