Financial Crime World

Mauritius Cracks Down on Trade-Based Money Laundering with New Financial Crimes Commission Act

Mauritius, an international trading hub in the Indian Ocean, is knownfor its vibrant economy and role as a facilitator of global trade. However, with this economic activity comes the risk of financial crimes, particularly trade-based money laundering (TBML). In response, Mauritius has passed a new legislation – the Financial Crimes Commission (FCC) Act.

Understanding Trade-Based Money Laundering (TBML)

TBML is a complex financial crime where proceeds of illegal activities are disguised and moved through trade transactions. According to the Financial Action Task Force (FATF), TBML refers to:

“the process of disguising the proceeds of crime and moving value through the use of trade transactions in an attempt to legitimize their illicit origins.”

As a net importer with a trade-to-GDP ratio of 98% in 2021, Mauritius presents an attractive target for financial crimes. The new FCC Act is a key response to this risk.

The Role of the Financial Crimes Commission (FCC)

Once proclaimed by Parliament, the FCC will be responsible for:

  1. Receiving and considering allegations or complaints of financial crimes: The FCC will receive and process allegations or complaints related to financial crimes.
  2. Detecting and investigating financial crimes: The FCC will have specialized divisions dedicated to the detection and investigation of financial crimes.
  3. Educating the public: The FCC will be mandated to educate the public about financial crimes and their prevention.
  4. Prosecuting financial crimes: The FCC will have the authority to prosecute financial crimes.
  5. Taking necessary actions: The FCC will take any other necessary actions to address financial crimes.

Other FCC Responsibilities

The FCC Act also requires the Commission to:

  1. Develop a strategic vision: The FCC will need to create a strategic vision for preventing financial crimes.
  2. Collaborate with organizations: The FCC will collaborate with local, regional, and international organizations involved in combating financial crimes.
  3. Maintain records: The FCC will maintain records of financial crimes, assets, and other related items.

Implications for Businesses

The FCC Act is a crucial step in Mauritius’s efforts to combat financial crimes, including TBML. Companies engaging in international trade with and from Mauritius must be aware of these legislative changes and the potential consequences of non-compliance.

For more information on ensuring compliance with Mauritian financial crime regulations or advice on trade policy, research, and negotiations, contact International Economics Consulting Ltd (IEC). As an independent consultancy firm, IEC works with development partners, governments, and the private sector to create value and promote sustainable growth and development.