Financial Crime World

Mauritius Imposes Financial Sanctions and Embargo on Listed Parties

The Government of Mauritius has taken a significant step in its efforts to combat terrorism, proliferation of weapons of mass destruction, and other threats to international peace and security by implementing targeted sanctions under the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019.

Implementation of UN Sanctions Measures

The National Sanctions Secretariat has issued a notice and an explanatory note on the implementation of United Nations sanctions measures, which have been published in the Government Gazette. The secretariat has also established a list of parties against whom targeted sanctions have been imposed, known as “Listed Parties.”

Obligations of Institutions

Institutions, including law firms, foreign law firms, joint law ventures, and foreign lawyers, are required to:

  • Regularly consult the Consolidated List of Listed Parties and take immediate action with respect to any changes brought thereto.
  • Regularly consult newspapers for any notices issued by the National Sanctions Secretariat and immediately act upon it.

Financial Prohibitions

Under section 23 of the Act, institutions are prohibited from:

  • Dealing with funds or other assets of Listed Parties
  • Making funds or other assets available to Listed Parties under section 24 of the Act

Reporting Obligations

Institutions must:

  • Immediately verify whether the details of a Listed Party match with the particulars of any of its customers.
  • Identify whether the customer owns any funds or other assets with them, including funds or assets mentioned in section 23(1) of the Act.
  • Make a report to the National Sanctions Secretariat and the Attorney General’s Office where funds or other assets have been identified by them. A nil report must also be submitted to the above authorities if no funds or other assets is identified.

Reporting of Suspicious Information

Institutions must immediately submit to the Financial Intelligence Unit (FIU) any information relating to a Listed Party which is known to them in accordance with section 14 of the Financial Intelligence and Anti-Money Laundering Act.

Internal Controls

Institutions must:

  • Implement internal controls and other procedures to enable them to effectively comply with the obligations under the Act.
  • Ensure that they have adequate systems in place to identify and report suspicious transactions.

Supervision and Enforcement

The Attorney General’s Office is required to supervise and enforce compliance by its licensees with the requirements imposed under the Act. Failure to comply with the Act is an offence.

Conclusion

It is imperative for institutions to familiarize themselves with the Act and the obligations imposed thereunder to ensure that they are not inadvertently violating the sanctions regime. By understanding their obligations, institutions can play a crucial role in supporting Mauritius’ efforts to combat terrorism, proliferation of weapons of mass destruction, and other threats to international peace and security.