Financial Crime World

MAURITIUS: KNOW YOUR CUSTOMER GUIDELINES A MUST FOR FINANCIAL INSTITUTIONS

Combating Money Laundering and Terrorist Financing

The Financial Intelligence Unit (FIU) of Mauritius has emphasized the importance of customer due diligence (CDD) or know your client (KYC) guidelines for financial institutions in the country. This is a crucial measure to combat money laundering and terrorist financing.

According to Section 17 of the Financial Intelligence and Anti-Money Laundering Act 2002 (FIAMLA) and the Financial Intelligence and Anti-Money Laundering Regulations 2018 (FIAMLR), reporting persons are required to adopt a risk-based approach and establish well-documented CDD procedures. These procedures must be in line with Section 17C of FIAMLA and Regulation 12 of FIAMLR.

Guidelines for Reporting Persons

Reporting persons, including real estate agents, individual legal professionals, and dealers in precious stones and metals, must consult the guidelines issued by the FIU when implementing their CDD obligations. These guidelines are available on the FIU’s website.

Customer Due Diligence Requirements

  • Identify the beneficial owner of a customer
  • Take reasonable measures to verify the identity of the beneficial owner using relevant information or data obtained from a reliable source

Record Keeping and Screening

  • Keep records of actions taken to comply with CDD obligations
  • Keep records of any difficulties encountered during the verification process
  • Consult the Consolidated UN Sanctions List and carry out a screening to determine whether there is a match

Consequences of Non-Compliance

  • Providing false or misleading information to a reporting person in connection with CDD requirements is an offence punishable by a fine not exceeding 500,000 rupees and imprisonment for a term not exceeding five years
  • Failure to comply with FIAMLA and FIAMLR provisions concerning CDD and record keeping is also an offence punishable by a fine not exceeding 10 million rupees and imprisonment for a term not exceeding five years

Important Note

The information contained in this document is for educational purposes only and must not be used for any other purpose without consent. Reporting persons who are unsure about their obligations under the anti-money laundering and combating financing of terrorism (AML/CFT) regulatory framework should seek independent legal advice.