Financial Crime World

Mauritius’ Commitment to Combating Money Laundering and Terrorist Financing with FATF Compliance

Mauritius, an Indian Ocean island nation, has exhibited unwavering commitment to preventing money laundering (ML) and terrorist financing (TF) through various initiatives. This article outlines Mauritius’ efforts to comply with the Financial Action Task Force (FATF) Recommendations.

International Conventions and Agreements

  • Mauritius has ratified and acceded to several international conventions:
    • United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (Vienna Convention)
    • United Nations Convention against Transnational Organised Crime (Palermo Convention)

Embracing FATF Recommendations

  • Mauritius underwent a mutual evaluation, following FATF’s Methodology, in 2018.
  • The resulting report, published by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), detailed Mauritius’ progress in implementing the FATF Recommendations.

Regulatory Framework

  • Mauritius introduced key regulations to address FATF requirements:
    • Financial Intelligence and Anti Money Laundering Regulations 2018
    • The United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019

Re-evaluation and Re-ratings

  • Mauritius has submitted multiple follow-up reports and applied for technical compliance re-ratings with ESAAMLG.
  • As per issued reports, Mauritius is currently:
    • Compliant on 26 out of 40 Recommendations
    • Largely Compliant on 14

Strengthening AML/CFT Measures

  • Mauritius established several national-level working groups to enhance its effectiveness regarding the 11 Immediate Outcomes of the FATF.

Risk Assessment

  • A crucial component of Mauritius’ strategy is its ability to assess ML/TF risks using a risk-based approach.
  • Mauritius’ first National Money Laundering and Terrorism Financing Risk Assessment Report, published in August 2019, guides the development of targeted policies and strategies to mitigate identified risks.

Mauritius’ proactive response to FATF requirements and the subsequent enhancements to its AML/CFT framework underscore its dedication to effectively combating ML and TF.

FATF Recommendations Implemented in Mauritius

  1. Customer Due Diligence
  2. Politically Exposed Persons (PEPs)
  3. Correspondent Banking
  4. Money or Value Transfer Services
  5. New Technologies
  6. Wire Transfers
  7. Reliance on Third Parties
  8. Internal Control
  9. Foreign Branches and Subsidiaries

Immediate Outcomes Focused Working Groups:

  • Risk Assessment
  • International Cooperation
  • Supervision
  • Effective policies for preventive measures and law enforcement powers
  • Legal Framework and Coverage
  • Enforcement and Customer Knowledge and Training
  • International Cooperation and Mutual Legal Assistance
  • Sanctions for Non-Compliance and Reporting Suspicious Transactions
  • Asset Recovery Proceedings and Confiscation
  • Investigation and Prosecution of Money Laundering and Terrorist Financing Offences
  • Confidentiality, Legal Privileges and Protections Against Unjustified Forfeiture
  • Penalties for Failure to Report Suspicious Transactions and Failure to Apply Customer Due Diligence
  • Other Relevant Matters and AML/CFT Implementation Issues.