Banks in Mauritius Embrace AML/CFT Best Practices

Mauritius has made significant strides in combating money laundering, terrorist financing, and proliferation (AML/CFT/CPF), earning it a reputation as a jurisdiction of substance. The country’s robust regulatory framework has earned it a “Compliant” or “Largely Compliant” rating with all 40 Financial Action Task Force (FATF) Recommendations.

AML/CFT Regime Strengthening

In February 2020, Mauritius was placed on the FATF Grey List. However, the government demonstrated its commitment to strengthening its AML/CFT regime by prioritizing the implementation of the FATF Action Plan. International organizations and development partners provided technical assistance and support to aid in this endeavor.

Progress and Achievements

Progress has been made over several ESAAMLG Task Force Meetings, with Mauritius consistently demonstrating its progress and reaffirming its commitments to combat illicit financial flows. A table illustrating the country’s progress through different enhanced Follow-Up Reports (FUR) following the Mutual Evaluation Report (MER) in 2018 is shown below:

The table highlights the country’s steady improvement, with significant progress made in recent years.

Milestones

• In October 2021, Mauritius successfully exited the FATF Grey List, ahead of schedule.
• The country was removed from the United Kingdom’s List of High-Risk Third Countries in November 2021.
• Mauritius was also removed from the European Union’s List of High-Risk Third Countries in March 2022.

Ongoing Efforts

Despite exiting the grey list, Mauritius continues to maintain its momentum in the fight against money laundering, terrorism, and proliferation financing. Recent initiatives include:

• A risk assessment exercise for virtual assets and virtual asset service providers
• Enactment of comprehensive legislation on virtual assets and initial token offerings
• Conducting a second National Risk Assessment, including sectoral risk assessments, to identify ML/TF risks in its ecosystem
• Introduction of an AML/CFT (Miscellaneous Provisions) Bill into the National Assembly to address gaps identified during the assessment

Future Plans

Mauritius remains committed to consolidating capacity building, training, and awareness-raising programs through collaborations with development partners and international institutions. The country is also focused on enhancing regional and international cooperation, sharing its experience gained and lessons learned in tackling illicit financial flows.

By embracing AML/CFT best practices, Mauritius has demonstrated its commitment to maintaining a robust regulatory framework and fighting against money laundering, terrorist financing, and proliferation financing.