Mauritius Introduces Financial Sanctions Checklist to Combat Illicit Activity

As a major international financial centre, Mauritius has taken bold steps to safeguard its financial services sector from abuse by illicit actors involved in proliferation financing and other harmful activities. In line with this commitment, the country is urging all natural and legal persons to exercise utmost caution and vigilance to ensure that they do not inadvertently support individuals or entities subject to United Nations Security Council (UNSC) sanctions related to North Korea and Iran.

FATF Mandate

The Financial Action Task Force (FATF) has mandated countries to implement targeted financial sanctions in response to proliferation financing under Recommendation 7. Mauritius, as a FATF member through its membership of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), has enacted the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act (the Sanctions Act) in May 2019.

National Sanctions Committee Guidelines

The National Sanctions Committee has since approved guidelines on the implementation of targeted financial sanctions under the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019. These guidelines aim to provide a clear framework for reporting suspicious transactions related to sanctioned individuals or entities.

Reporting Templates

In an effort to facilitate compliance with these regulations, Mauritius has released two reporting templates:

• One for reporting under Section 23(4) of the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019
• Another for reporting on positive name matches under Section 25(2) of the same act

Commitment to Combating Illicit Financial Activities

By implementing these measures, Mauritius is demonstrating its commitment to upholding international standards in combating illicit financial activities and ensuring the integrity of its financial system.