Financial Crime World

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Mauritius Imposes Financial Sanctions and Embargoes Under United Nations Security Council Resolutions

In a bid to combat threats to international peace and security, including terrorism, financing of terrorism, and proliferation of weapons of mass destruction, the Government of Mauritius has implemented financial sanctions and embargoes in accordance with the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019.

The Act’s Regimes

The Act came into effect on May 29, 2019, and provides for two regimes:

UN Regime

Under this regime, the United Nations Security Council has established a list of parties against which targeted sanctions have been imposed. The Consolidated List is available on the UN website and also disseminated to reporting persons, investigatory authorities, supervisory authorities, and other relevant public and private agencies registered on the goAML platform.

Domestic Regime

Under this regime, Mauritius has the authority to declare individuals as designated parties on a domestic list. This decision is taken independently of the UN and requires a freezing order against the funds or other assets of the designated party.

Prohibitions

In the event of a listing under the UN Regime, two prohibitions come into immediate effect:

  • Section 23 prohibits dealing with the funds or other assets of listed parties.
  • Section 24 prohibits making funds or other assets available to such parties.

National Sanctions Secretariat

Pursuant to Section 18 of the Act, the National Sanctions Secretariat has given public notice of the Consolidated List and issued an Explanatory Note on the implementation of United Nations sanctions measures. As a result, financial prohibitions under Sections 23 and 24 of the Act apply immediately.

Reporting Obligations

Reporting persons are required to:

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

Obligations

  • Reporting obligations: reporting persons must verify whether details of listed parties match customer particulars, identify if customers own funds or assets, and make reports to the National Sanctions Secretariat and their AML/CF supervisor.
  • Reporting of suspicious information: reporting persons must submit any information relating to a listed party known to them to the Financial Intelligence Unit (FIU) in accordance with section 14 of the Financial Intelligence and Anti-Money Laundering Act.
  • Internal controls: reporting persons are required to implement internal controls and procedures to effectively comply with obligations under the Act.

Supervision and Enforcement

The FIU is responsible for supervising and enforcing compliance by reporting persons falling under its AML/CF purview with requirements imposed under the Act. Failure to comply with the Act constitutes an offence.