Financial Crime World

Mauritius Combats Money Laundering and Financing of Terrorism with Robust Legislative Framework

Mauritius has implemented a robust legislative framework to combat money laundering and financing of terrorism as a responsible member of the international community. The island nation has enacted various laws and regulations to prevent these illegal activities.

Key Legislation

  • The Financial Intelligence and Anti-Money Laundering Act 2002 (FIAMLA) provides for the prevention of money laundering and terrorist financing.
  • Other notable legislations include:
    • Prevention of Corruption Act 2002
    • Prevention of Terrorism Act 2002
    • Convention for the Suppression of the Financing of Terrorism Act 2003

AML-CFT Handbook and Code

In addition to these laws, Mauritius has also issued the AML-CFT Handbook, which outlines measures to be taken by financial institutions and other entities to prevent money laundering and terrorist financing. The Financial Services Commission (FSC) has also issued a comprehensive code on the prevention of money laundering and terrorist financing, which applies to all its licensees.

Effective Exchange of Information

The FSC has the power to exchange information with various public sector agencies, international organisations, foreign supervisory institutions, and law enforcement agencies. The commission has signed several memoranda of understanding (MOUs) with regulatory bodies, including foreign supervisory bodies, to facilitate mutual assistance and exchange of information.

  • One notable MOU is between the FSC and the Financial Intelligence Unit (FIU), which outlines cooperation in preventing money laundering and terrorist financing.
  • The FSC also forwards any information on suspicious transactions or money laundering offences to the FIU as required by law.

International Cooperation

Mauritius has demonstrated its commitment to international cooperation by signing various MOUs with other countries and organisations. For instance:

  • The country is an active member of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG).
  • Mauritius is an associate member of the Financial Action Task Force (FATF).

Financial Sector Assessment Programme (FSAP)

The FSC has voluntarily requested FSAP exercises by the International Monetary Fund-World Bank in 2003 and 2007. The main objective of these exercises was to assess the Mauritian financial sector’s strengths, weaknesses, and vulnerabilities to macroeconomic shocks.

Investor Alerts

As part of its surveillance mechanism, the FSC ensures that investor alerts and warnings from international bodies are properly disseminated to relevant stakeholders. These alerts typically refer to entities that are not authorised to provide investment services from the relevant jurisdiction.

By implementing these measures, Mauritius has demonstrated its commitment to preventing money laundering and financing of terrorism, thereby ensuring a safe and secure financial system for its citizens and investors alike.