Financial Crime World

Mauritius Committed to Combating Anti-Terrorist Financing, Money Laundering

Mauritius has demonstrated its commitment to implementing anti-terrorist financing (ATF) regulations to combat money laundering and terrorist financing. The country’s financial sector regulators have stepped up their enforcement efforts, imposing penalties on institutions that fail to implement adequate controls.

Collaboration among Regulators

The Financial Services Commission (FSC), Bank of Mauritius (BOM), and other relevant authorities such as the Financial Intelligence Unit (FIU) and Independent Commission Against Corruption (ICAC) are working together to combat corruption through investigation, prevention, and education. The goal is to make financial institutions understand that anti-money laundering (AML)/combating financing of terrorism (CFT) compliance is a top priority.

International Conventions and Treaties

Mauritius has ratified several international conventions, protocols, and treaties, including:

  • United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances
  • Palermo Convention
  • International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation issued by the Financial Action Task Force

AML/CFT Handbook

To assist financial institutions in complying with national measures, the FSC released an AML/ CFT Handbook in January 2020. The handbook aims to help financial institutions under its purview comply with the requirements of the Financial Intelligence and Anti-Money Laundering Act (FIAMLA) and FIAML Regulations 2018.

Supervision and Enforcement

The FSC has implemented onsite/offsite supervision to ensure compliance:

  • Onsite supervision involves supervisory visits and inspections at licensees’ places of operation
  • Offsite supervision involves examination of statutory returns and audited financial statements
  • The regulator has initiated a risk-based supervisory cycle that resulted in an increase in the number of AML/CFT onsite inspections

Memoranda of Understanding (MOUs)

Mauritius has signed MOUs with regulatory bodies to facilitate mutual assistance and exchange of information. These MOUs aim to:

  • Consolidate supervision
  • Define mechanisms for sharing information
  • Reinforce collaboration amongst institutions in fighting crime, money laundering, and terrorist financing

Results of Efforts

The FSC’s efforts have resulted in a significant increase in the number of AML/CFT breaches referred for initiation of enforcement processes. The regulator continues to work closely with financial institutions to ensure compliance with anti-money laundering and combating financing of terrorism regulations.