Financial Crime World

Mauritius Takes Proactive Steps to Combat Money Laundering and Terrorism Financing

In an effort to strengthen its financial sector, Mauritius has issued its first National Money Laundering and Counter Terrorism Financing Risk Assessment (NRA) in compliance with the Financial Action Task Force’s (FATF) recommendations.

Background

The NRA exercise was launched in January 2017 to identify, understand, and assess the money laundering and terrorist financing risks faced by Mauritius. The assessment focused on four key factors:

  • Scale and characteristics of criminal proceeds: Internal and external sources were examined.
  • Terrorism financing in Mauritius: The country’s vulnerability to terrorism financing was assessed.
  • Weaknesses or gaps in AML/CFT framework: The country’s ability to combat money laundering and terrorism financing was evaluated.
  • Vulnerabilities in financial services sector and DNFBPs: The assessment looked at weaknesses in the financial services sector and designated non-financial businesses and professions (DNFBPs).

National Money Laundering and Counter Terrorism Financing Risk Assessment Report

The NRA report provides a comprehensive overview of Mauritius’ vulnerability, threat, and risk ratings. It highlights areas that require attention and has informed the development of the National Strategy for Combating Money Laundering and the Financing of Terrorism and Proliferation 2019-2022.

National Strategy for Combating Money Laundering and the Financing of Terrorism and Proliferation

The strategy sets out eight core themes aimed at enhancing Mauritius’ ability to prevent, detect, and deter money laundering and terrorism financing. These themes include:

  • Strengthening AML/CFT legal and regulatory framework: Enhancing laws and regulations to combat money laundering and terrorism financing.
  • Implementing comprehensive risk-based supervision framework: Focusing on high-risk areas and entities.
  • Detecting and disrupting ML/TF threats: Identifying and addressing money laundering and terrorism financing risks.
  • Enhancing national coordination and cooperation: Improving communication and collaboration between authorities.
  • Consolidating capacity building, training, and awareness raising programs: Educating stakeholders about AML/CFT requirements.
  • Promoting transparency of legal persons and arrangements: Enhancing public access to information on companies and structures.
  • Implementing effective AML/CFT data collection system: Collecting and analyzing data on AML/CFT transactions.
  • Enhancing regional and international cooperation: Collaborating with other countries to combat money laundering and terrorism financing.

Implementation

The implementation of the strategy will involve close collaboration with relevant private sector stakeholders to ensure effective compliance with AML/CFT requirements. By taking proactive steps to assess risks and allocate resources effectively, Mauritius is demonstrating its commitment to combating money laundering and terrorism financing.

Conclusion

Mauritius’ efforts are expected to contribute to a safer financial system and a more stable economy for all stakeholders. The country’s proactive approach to combating money laundering and terrorism financing sets an example for other countries in the region.