Financial Crime World

Mauritius Tightens AML/CFT Regulations: FSC’s Crusade Against Money Laundering and Terrorist Financing

Mauritius, known for its tourism and financial services sectors in the Indian Ocean, is resolute in its fight against Money Laundering (ML) and Financing of Terrorism (FT). The country’s commitment to international initiatives is apparent in its extensive legislative framework, including:

Key Legislations

  1. The Financial Intelligence and Anti-Money Laundering Act 2002 (FIAMLA)
  2. The Prevention of Corruption Act 2002
  3. The Prevention of Terrorism Act 2002
  4. The AML-CFT Handbook
  5. The Convention for the Suppression of the Financing of Terrorism Act 2003

Mauritius has adopted the International Convention for the Suppression of the Financing of Terrorism. This adoption is in accordance with Sections 7(1)(a) and 18(1)(a) of the Financial Services Act 2007 and the Financial Intelligence and Anti-Money Laundering Act 2002.

FSC Code on the Prevention of Money Laundering and Terrorist Financing

The Financial Services Commission (FSC), Mauritius’ financial regulator, has issued a comprehensive single document called the FSC Code on the Prevention of Money Laundering and Terrorist Financing. This code is mandatory for all FSC licensees.

Effective Information Exchange

The FSC has the power to exchange information with various entities to combat ML and FT. Several Memorandums of Understanding (MOUs) have been signed between the FSC and regulatory bodies, both domestic and international, to promote mutual assistance and information exchange.

  • An MOU with the Financial Intelligence Unit (FIU) focuses on preventing ML and FT by establishing cooperative efforts.
  • The FSC, mandated by Section 22 of the Financial Intelligence and Anti-Money Laundering Act 2002, forwards any ML suspicions or reports of potential offenses to the FIU.
  • Foreign authorities can request judicial assistance under the Mutual Assistance in Criminal and Related Matters Act 2003 for any serious offense.

Proactive Assessment: The Financial Sector Assessment Programme (FSAP)

The FSC undergoes regular proactive assessments by the International Monetary Fund-World Bank Financial Sector Assessment Programme (FSAP). These assessments evaluate Mauritius’ financial sector strengths, weaknesses, and vulnerabilities and provide recommendations for improvement.

Strategic Collaboration: Continuous Regulatory Framework Improvement

The FSC adheres to international standards, such as those set by the International Organisation of Securities Commissions (IOSCO) and the International Association of Insurance Supervisors (IAIS). Mauritius is an active member of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) and an associate member of the Financial Action Task Force (FATF).

Investor Protection: Dissemination of Regulatory Alerts

The FSC plays a crucial role in disseminating investor alerts and warnings from international bodies like IOSCO to relevant stakeholders. These alerts refer to entities that are not authorized to provide investment services within their jurisdictions. With proactive regulatory measures and international collaboration, Mauritius continues to strengthen its stance against ML and FT.