Financial Crime World

Mauritius Leads the Way in AML/CFT Compliance: Best Practices Revealed

============================================================

Mauritius has long been at the forefront of efforts to combat Money Laundering (ML) and Financing of Terrorism (FT). The island nation’s robust legislative framework, coupled with its commitment to international cooperation, has earned it a reputation as a model for AML/CFT compliance.

At the heart of Mauritius’ AML/CFT strategy is the Financial Intelligence and Anti-Money Laundering Act 2002 (FIAMLA), which provides the legal framework for combating ML/FT. This comprehensive legislation has been supplemented by other key enactments, including:

  • Prevention of Corruption Act 2002
  • Prevention of Terrorism Act 2002

International Cooperation

In addition to its domestic legislation, Mauritius has also ratified several international conventions aimed at combating ML/FT, including:

  • Convention for the Suppression of the Financing of Terrorism Act 2003

This convention provides for the International Convention for the Suppression of the Financing of Terrorism to have force of law in Mauritius.

Regulatory Framework

The Financial Services Commission (FSC), the country’s financial regulatory body, has been instrumental in implementing AML/CFT measures. In March 2012, the FSC issued a new Code on the Prevention of Money Laundering and Terrorist Financing, which provides a single comprehensive framework for all licensees to follow.

Information Exchange

The FSC has also established a robust system for exchanging information with public sector agencies, international organizations, foreign supervisory institutions, and law enforcement agencies. This includes several Memoranda of Understanding (MOUs) signed with regulatory bodies, including foreign supervisory bodies, aimed at facilitating mutual assistance and the exchange of information in accordance with international standards.

Key MOU

One notable MOU is that between the FSC and the Financial Intelligence Unit (FIU), which outlines the terms under which both institutions will cooperate to prevent ML/FT. The FSC also forwards any information on suspected money laundering or suspicious transactions to the FIU, as required by Section 22 of FIAMLA.

International Assessment

Mauritius has also demonstrated its commitment to international cooperation through its participation in the Financial Sector Assessment Programme (FSAP), conducted by the International Monetary Fund-World Bank. The FSAP assesses a country’s financial sector’s strengths, weaknesses, and vulnerabilities, as well as its contribution to economic growth.

Best Practices

The AML/CFT framework in Mauritius has been praised for its effectiveness, with the FSAP team recognizing that significant progress has been made in recent years to enhance the framework. The FSC continues to review its regulatory framework to meet new international standards, while also reviewing its Risk-Based Supervision Framework to ensure compliance of licensees with AML/CFT legislation.

Regional Cooperation

Mauritius is an active member of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), an associate member of the Financial Action Task Force (FATF), and is committed to implementing FATF recommendations regionally. The country also ensures that investor alerts and warnings from international bodies are disseminated to relevant stakeholders, providing investors with vital information on entities not authorized to provide investment services.

Conclusion

Overall, Mauritius’ AML/CFT compliance framework serves as a model for other countries, demonstrating the importance of robust legislation, effective exchange of information, and international cooperation in combating ML/FT. As the country continues to strengthen its regulatory framework, it is well-positioned to maintain its status as a leader in AML/CFT compliance.