Mauritius Cracks Down on Non-Financial Businesses and Professions to Combat Terrorist Financing
Preventing the Misuse of Non-Financial Businesses and Professions
In a bid to prevent the misuse of non-financial businesses and professions (DNFBPs) for terrorist financing, Mauritius has undertaken a comprehensive risk assessment of its non-profit organization sector.
Financial Action Task Force Recommendations
The Financial Action Task Force (FATF), an inter-governmental body that sets standards for combating money laundering and terrorist financing, recommends that countries assess the risks posed by DNFBPs to the financial system. Mauritius’ National Risk Assessment (NRA) identified gaps in its anti-money laundering and combating the financing of terrorism (AML/CFT) framework, prompting the government to take action.
Key Findings and Recommendations
The NRA highlighted the need for stronger risk-based supervision and monitoring of DNFBPs, including non-profit organizations, gambling and trust companies, to ensure their effective assessment and management of money laundering and terrorist financing risks. To address these gaps, Mauritius has developed a National AML/CFT Strategy that aims to enhance its ability to prevent, detect, and deter money laundering and the financing of terrorism.
National AML/CFT Strategy
The strategy comprises eight core themes:
- Strengthening the legal and regulatory framework
- Implementing a comprehensive risk-based supervision framework
- Enhancing national coordination and cooperation
- Improving customer due diligence and beneficial ownership transparency
- Increasing awareness and training for DNFBPs
- Enhancing suspicious transaction reporting and investigation
- Improving international cooperation and information sharing
- Strengthening the Financial Intelligence Unit’s capabilities
Key Initiatives
The government has also implemented measures to strengthen its capacity building, training, and awareness-raising programs for DNFBPs, including non-profit organizations. Additionally, a comprehensive legal and regulatory framework for DNFBPs has been established, which includes requirements for beneficial ownership transparency and reporting suspicious transactions.
Government Commitment
“We are committed to preventing the misuse of our financial system for terrorist financing,” said [Name], Minister of Finance. “Our National AML/CFT Strategy outlines our approach to addressing these risks and ensuring that Mauritius meets international standards.”
International Recognition
Mauritius’ efforts to combat terrorist financing have been recognized internationally, with the country being commended for its progress in implementing the FATF’s 40 Recommendations.
Collaboration with DNFBPs
“The fight against terrorist financing requires a concerted effort from all stakeholders,” said [Name], Director of the Financial Intelligence Unit. “We are working closely with DNFBPs to ensure that they understand their AML/CFT obligations and can effectively manage the risks posed by their activities.”