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Mauritius Imposes Tough Sanctions on Listed Parties

Guidelines Issued for Implementation of Targeted Financial Sanctions

August 25, 2020 - PORT LOUIS, MAURITIUS: The National Sanctions Secretariat has issued guidelines for the implementation of targeted financial sanctions under the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019.

Overview of Guidelines

The guidelines aim to assist banks and other financial institutions licensed by the Bank of Mauritius in implementing the restrictive measures prescribed under the Act. The Act imposes three main targeted sanctions:

  • Financial prohibitions
  • Arms embargo
  • Travel ban, against listed parties or designated parties.

Obligations of Financial Institutions

Financial institutions are required to:

  • Ensure adherence to the provisions of the Act, especially sections 23, 24, and 25 thereof
  • Regularly consult the United Nations Security Council Consolidated List and take immediate action with respect to any changes brought thereto
  • Implement internal controls and other procedures to ensure effective compliance with the obligations under the Act
  • Screen all clients and transactions against sanctions lists with an effective system that is appropriate to the nature, size, and risk of the business of the financial institution
  • Have in place clear policies and procedures to investigate and escalate alerts generated by a potential match which indicates a sanctions risk

Supervision by the Bank of Mauritius

The Bank of Mauritius is required to supervise and enforce compliance by its licensees with the requirements imposed under the Act. Failure to comply with the requirements of the Act and guidelines and instructions issued by the Bank of Mauritius regarding the implementation of the provisions of the Act is an offence and may be subject to monetary penalties.

Importance of Compliance

The National Sanctions Secretariat has emphasized the importance of financial institutions complying with the obligations under the Act to prevent the misuse of the financial system for illicit purposes.

You can access the guidelines and templates on the website of the National Sanctions Secretariat at http://nssec.govmu.org under the heading “Guidelines”.