Mauritius Takes a Stand Against Money Laundering and Financing of Terrorism with Strong Legislative Framework
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Port Louis, Mauritius - In its effort to combat money laundering and financing of terrorism, Mauritius has strengthened its legislative framework by enacting several laws and regulations. This article highlights the country’s commitment to preventing financial crimes.
The Financial Intelligence and Anti-Money Laundering Act 2002 (FIAMLA)
The FIAMLA is the cornerstone of Mauritius’ anti-money laundering and combating the financing of terrorism (AML/CFT) regime. It provides for a comprehensive AML/CFT framework, which includes the Financial Services Commission’s (FSC) code on prevention of money laundering and terrorist financing.
Key Provisions
- Establishes a comprehensive AML/CFT framework
- Includes the FSC’s code on prevention of money laundering and terrorist financing
- Applicable to all financial institutions licensed by the FSC
- Ensures adherence to international standards and best practices
Cooperation and Information Exchange
To combat money laundering and financing of terrorism effectively, the FSC has the power to exchange information with:
- Public sector agencies
- International organizations
- Foreign supervisory institutions
- Law enforcement agencies
Several memoranda of understanding (MOUs) have been signed between the FSC and regulatory bodies to facilitate mutual assistance and exchange of information.
Memorandum of Understanding with the Financial Intelligence Unit (FIU)
One such MOU is with the FIU, outlining the cooperation framework for preventing money laundering and financing of terrorism. The FSC also forwards any information on suspicious transactions or money laundering offences to the FIU, as required by law.
International Cooperation
Mauritius has demonstrated its commitment to combating money laundering and financing of terrorism by participating in international initiatives such as:
- Financial Sector Assessment Programme (FSAP) conducted by the International Monetary Fund-World Bank
- Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG)
- Associate member of the Financial Action Task Force (FATF)
Assessment and Recognition
The country’s AML/CFT framework has been assessed and recognized as robust, with significant steps taken to enhance the framework and prevent financial crimes.
Investor Alerts and Warnings
The FSC ensures proper dissemination of investor alerts and warnings from international bodies such as:
- International Organisation of Securities Commission (IOSCO)
- Other regulatory bodies
This provides investors with critical information about entities that are not authorized to provide investment services.
Conclusion
Mauritius’ strong legislative framework and commitment to combating money laundering and financing of terrorism have earned the country a reputation as a responsible and transparent financial hub in the region.