Financial Crime World

Mauritius Financial Sanctions and Embargoes: Know the Rules, Avoid the Risk

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Mauritius has implemented targeted financial sanctions and embargoes through the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019. This legislation aims to combat global threats such as terrorism and weapons proliferation.

Understanding the Act

The Act came into effect on May 29, 2019, providing a legal framework for the Government of Mauritius to implement sanctions imposed by the UN Security Council. The legislation sets out two regimes:

UN Regime

  • Parties listed as terrorists or proliferators are subject to immediate financial prohibitions, including freezing of assets and prohibition on making funds available.
  • No freezing order is required.

Domestic Regime

  • Mauritius can declare individuals as designated parties independently of the UN.
  • Once declared, these individuals are also subject to financial prohibitions, but a freezing order is required from the Secretary of Home Affairs.

Supervision and Reporting Requirements

The Financial Intelligence Unit (FIU) has been appointed as the supervisor for Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) for various categories of reporting persons, including:

  • Lawyers
  • Jewelers
  • Real estate agents
  • Others

Reporting persons are required to:

  • Regularly consult a UN list of designated parties
  • Take immediate action upon any changes
  • Monitor newspapers for notices from the National Sanctions Secretariat and act promptly on them

Consequences of Non-Compliance

Failure to comply with the Act is an offence. Reporting persons are reminded of their obligations under the legislation, including:

  • Reporting suspicious transactions
  • Implementing internal controls

A video presentation by the FIU explains the main provisions of the Act.

Conclusion

Mauritius has taken a bold step in combating global threats, and citizens must be aware of the rules to avoid potential risks. By understanding the financial sanctions and embargoes, individuals can take steps to ensure compliance with the law and protect themselves from potential consequences.