Financial Crime World

Mauritius Fiscal Investigations Department: Cracking Down on Tax Evasion, Money Laundering, and Terrorist Financing

The Mauritius Revenue Authority’s (MRA) Fiscal Investigations Department (FID) is taking decisive action against tax evasion, money laundering, and terrorist financing, in response to recommendations from the Financial Action Task Force (FATF) in their mutual evaluation report on Mauritius’ Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) system.

FID’s Mandate and Powers

Established under Section 3(4) of the MRA ACT 2004, FID is responsible for investigating potential tax-evasion cases, collecting evidence, raising assessments, and recommending prosecutions for certain offenses. The department is granted the power to enter business premises, request records, and seize documents.

Establishment of the AML/CFT Unit

In line with FATF recommendations, the AML/CFT Unit was established within FID in February 2020. This Unit investigates tax evasion cases in parallel with financial crimes such as money laundering and terrorism financing. The Unit collaborates with other law enforcement agencies to deter money laundering activities and strengthen Mauritius’ financial crime defenses.

Objectives and Information-Sharing

The objectives of the Unit include carrying out investigations, referring tax offenses for prosecution, and assessing and forwarding money laundering and financing of terrorism cases to relevant agencies such as the ICAC (Independent Commission Against Corruption) and other law enforcement agencies. The MRA has also amended the Mauritius Revenue Act to facilitate information-sharing with the Mauritius Police Force, Integrity Reporting Services Agency, and the Asset Recovery Investigation Division.

Time Limits for Assessments

Under the law, the Director General of the MRA cannot make assessments for offenses committed more than:

  • Three years before the year of assessment for Income Tax Act (ITA), Value Added Tax Act (VAT Act), and Gambling Regulatory Authority Act
  • Four years before the year of assessment for Customs Act

However, cases of tax evasion and fraud referred for prosecution or for anti-money laundering offenses can result in a stay of assessment, extending the time limit for raising assessments by an additional two years.

Conclusion

By strengthening its efforts against tax evasion, money laundering, and terrorist financing, the Mauritius Fiscal Investigations Department is enhancing the effectiveness of the nation’s AML/CFT system and safeguarding its financial stability.