Financial Crime World

Title: Mauritius Exits FATF Grey List: An Update on Mauritius’ Fight Against Financial Crimes

##Background: Mauritius’ Deficiencies in AML/CFT Measures (2018)

  • ESAAMLG released a damning Mutual Evaluation Report (MER) on Mauritius in 2018
  • Mauritius, a small island nation with 21,443 business entities and a GDP of $1 billion, was found non-compliant with several FATF recommendations
  • Money laundering risk for Mauritius assessed as medium-high
  • Accountancy sector classified as medium risk
  • Despite remedial measures, Mauritius added to FATF Grey list in January 2020

##Actions Taken by Mauritius (2019-2021)

  • Launched National Risk Assessment (NRA) system to address vulnerabilities and bring Mauritius into line with global standards
  • Amendments to laws and regulations to align with FATF expectations
  • Mauritius Institute of Professional Accountants (MIPA) publishes “AML/CFT Guidelines” and launches awareness strategy
  • Establishment of AML/CFT supervisory forum with major players collaborating to combat financial crimes
  • MIPA establishes an AML/CFT unit, provides training, and adopts risk-based approach for on-site inspections

##Key Achievements (2021)

  • Exited FATF Grey list
  • Compliance with 39 of 40 FATF recommendations

##Areas for Improvement (2021)

  • Upgrades required for virtual assets and virtual asset service providers compliance (Recommendation 15)

##Impact and Takeaways

  • Mauritius’ unwavering commitment to addressing AML/CFT challenges
  • Positive example for countries facing similar issues

##Timeline

  1. 2018 - ESAAMLG Mutual Evaluation Report (MER) on Mauritius reveals significant deficiencies
  2. 2019 - Launch of National Risk Assessment (NRA) system, amendments to laws and regulations
  3. Early 2021 - Publication of “AML/CFT Guidelines” and launch of awareness strategy
  4. Late 2021 - Exit from FATF Grey list, compliance with 39 of 40 FATF recommendations

##MIPA’s Role in Combat against Financial Crimes

  • Guidance on various themes: National Risk Assessment, customer due diligence, record keeping, etc.
  • Training requirements and target financial sanctions
  • Examination of AML/CFT measures by licensing authorities

##Collaborative Efforts by Supervisory Institutions

  • Formation of an AML/CFT supervisory forum
  • Exchange of information, coordinated outreach, and sharing of best practices
  • Joint efforts to combat financial crimes effectively

##Mauritius’ Progress towards AML/CFT Compliance

  • Addressing weaknesses in laws, regulations, and implementation
  • Promotion of transparency and accountability within the financial industry
  • Support from international partners to strengthen AML/CFT frameworks
  • Ongoing training and awareness campaigns for licensees and professionals