Mauritius Cracks Down on Money Laundering and Terrorist Financing: New Regulations and International Compliance

Mauritius, a leading financial hub in the Indian Ocean, has strengthened its commitment to combating money laundering, terrorism financing, and proliferation activities in accordance with international standards. The country’s dedication to this cause is reflected in its ratification and accession to various treaties and conventions, as well as its participation in international organizations such as the Financial Action Task Force (FATF) and the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG).

Evaluation and Improvements

Mauritius underwent a mutual evaluation of its Anti-Money Laundering and Counter-Terrorist and Proliferation Financing (AML/CFT) framework in 2018, leading to several improvements in its legislation and regulatory framework. The country has made significant strides in implementing the FATF Recommendations, reaching technical compliance with the FATF and enhancing the effectiveness of its AML/CCTF systems.

Legislation and Regulations

To strengthen its AML/CFT measures, Mauritius enacted the following laws:

1. The United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019, enabling the government to implement targeted sanctions against individuals or entities implicated in international threats.
2. The Financial Intelligence and Anti-Money Laundering Regulations 2018 to address the FATF requirements.

Positive Feedback from International Organizations

The improvements made by Mauritius have been acknowledged by international organizations. According to the ESAAMLG’s 2018 Mutual Evaluation Report, Mauritius has addressed deficiencies in the majority of the 26 provisions that correspond to the FATF Recommendations, making significant progress in its efforts to combat financial crimes.

Consolidated Technical Compliance Ratings

Continuous Efforts to Enhance AML/CFT Measures

As part of its ongoing efforts to enhance the effectiveness of its AML/CFT measures, Mauritius established various working groups to address the 11 Immediate Outcomes of the FATF. One of these initiatives was the National Money Laundering and Terrorism Financing Risk Assessment Exercise.

National Money Laundering and Terrorism Financing Risk Assessment Exercise

This exercise, which utilized the World Bank’s National Money Laundering and Terrorism Financing Risk Assessment Tool, enabled Mauritius to identify and assess its money laundering and terrorist financing risks, understand their scale and characteristics, and take appropriate actions to mitigate those risks. The findings from the assessment informed policies and strategies to combat financial crimes effectively. For further information, refer to this link