Financial Crime World

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Mauritius Adopts International Sanctions Framework to Enhance Compliance

The Government of Mauritius has taken a significant step towards strengthening its commitment to international sanctions by implementing the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019.

The act provides a legal framework for the country to implement targeted sanctions, including financial sanctions, arms embargo and travel ban, and other measures imposed by the United Nations Security Council under Chapter VII of the Charter of the United Nations. The act makes provision for two regimes:

  • UN Regime: Under this regime, once a party is listed by the United Nations, financial prohibitions under Sections 23 and 24 of the Act operate immediately.
  • Domestic Regime: This regime enables Mauritius to make domestic decisions for declaring a person as a designated party on a domestic list. The decision-making process is independent of the UN, and a freezing order is required against the funds or other assets of the designated party.

Supervision and Compliance

The Financial Intelligence Unit (FIU) has been entrusted with the responsibility of supervising compliance with the Act’s requirements. Reporting persons are obligated to:

  • Regularly consult the Consolidated List
  • Take immediate action in response to any changes
  • Report any suspicious information to the FIU

Consequences of Non-Compliance

Failure to comply with the Act is an offence, and reporting persons must implement internal controls and other procedures to enable effective compliance.

Resources and Support

The FIU has produced a video presentation explaining the main provisions of the Act, which can be downloaded from its website. This development demonstrates Mauritius’ commitment to upholding international sanctions and preventing the misuse of financial systems for illicit purposes. The country’s anti-money laundering and combating the financing of terrorism (AML/CFT) framework is expected to be strengthened by this development.