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The Dark Side of Finance: How Mauritius is Fighting Money Laundering

A Comprehensive Look at the Country’s Efforts to Prevent and Prosecute Money Laundering Crimes

In recent years, money laundering has become a major concern for financial institutions around the world. The phenomenon, where criminals hide illicit funds by converting them into legitimate assets, has led to widespread corruption and instability in many countries. Mauritius, a small island nation off the coast of East Africa, is no exception.

Preventing Money Laundering

The country’s Financial Intelligence and Anti-Money Laundering Act (FIAMLA) was enacted in 2002 with the aim of preventing and combating money laundering. The law criminalizes transactions that involve property derived from any crime, as well as the failure to take measures to prevent such transactions.

Conspiracy to Commit Money Laundering

Section 4 of the FIAMLA makes it an offense for anyone who agrees with one or more other persons to commit a money laundering offense. This provision is designed to catch those who plan and conspire to launder money, making it harder for them to escape detection.

Definition of ‘Crime’

The term “crime” as defined in the FIAMLA means an offense punishable by penal servitude, imprisonment for more than 10 days, or a fine exceeding 5,000 rupees. This broad definition aims to capture not only local but also international crimes that are committed outside Mauritius.

Limitation on Payment in Cash

Section 5 of the FIAMLA imposes a limitation on payment in cash to prevent money laundering. Transactions in excess of 500,000 rupees are prohibited altogether, except for certain exempt transactions. This provision is designed to provide an audit trail and act as a preventive measure against money laundering.

Exempt Transactions

The FIAMLA exempts certain transactions from the limit on payment in cash. These include:

  • Transactions between the Bank of Mauritius and any other person
  • Banks, financial institutions, or customers who are established and whose transactions are commensurate with their lawful activities

Conclusion

In conclusion, Mauritius has taken significant steps to combat money laundering through its Financial Intelligence and Anti-Money Laundering Act. The country’s efforts to prevent and prosecute money laundering crimes demonstrate a commitment to maintaining a stable and trustworthy financial system.