Mauritius Government Introduces Sweeping Asset Recovery Legislation
The Mauritian government has passed a landmark legislation aimed at recovering assets obtained through illicit means and promoting good governance in the country.
What is the new law?
The new Act defines assets as any movable or immovable property, including corporeal or incorporeal rights, acquired by a person regardless of how it was acquired. This includes financial resources, negotiable instruments, shares, securities, bonds, drafts, and letters of credit, among others.
Key Features
- Unexplained Wealth Orders (UWOs): The Act gives authorities the power to issue orders to recover assets that cannot be satisfactorily accounted for by their owners or controllers.
- Public-Private Partnership Task Force: A new task force will oversee the recovery and management of recovered assets, ensuring transparency and accountability in the process.
- Recovered Assets Fund: A fund will be established to benefit the public purse, with proceeds from recovered assets being used to support public programs and initiatives.
- Increased penalties for money laundering and terrorist financing offenses: The Act introduces stricter penalties to deter individuals from engaging in these illegal activities.
Definitions
Key Definitions
- Public body: Any Ministry, Government department, or statutory body performing judicial or adjudication functions.
- Public official: Includes ministers, members of parliament, public servants, local government officers, and employees of statutory bodies.
- Unexplained wealth: Any property that cannot be satisfactorily accounted for by its owner or controller.
Implementation
The Act will come into effect immediately, with the Public-Private Partnership Task Force being established to oversee its implementation. The government has pledged to work closely with financial institutions and other stakeholders to ensure a smooth transition.
Reactions
Financial experts have welcomed the new legislation, citing it as a major step forward in Mauritius’ efforts to combat money laundering and terrorist financing. Civil society groups have also hailed the Act as a significant victory in the fight against corruption.