Financial Crime World

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Mauritius Adheres to International Anti-Money Laundering and Combating the Financing of Terrorism Standards

Port Louis, Mauritius - In a move to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) framework, Mauritius has implemented various measures to prevent the misuse of its financial system.

Implementation of AML/CFT Measures

In accordance with international standards, Mauritius requires foreign financial institutions to be effectively supervised by relevant authorities. This includes:

  • Having effective customer acceptance and know-your-customer (KYC) policies in place
  • Obtaining approval from senior management before establishing new correspondent relationships
  • Documenting respective AML/CFT responsibilities

Correspondent Banking Relationships

Mauritius has set out guidelines to prevent the misuse of its financial system, including:

  • Prohibiting banks from entering into or continuing a correspondent relationship with a financial institution incorporated in a jurisdiction without physical presence, unless it is affiliated with a regulated financial group
  • Requiring enhanced due diligence for non-face-to-face business relationships

Non-Face-to-Face Transactions and Relationships

For non-face-to-face transactions and relationships, Mauritius requires financial institutions to apply effective customer identification procedures and take specific measures to mitigate high-risk verification.

Suspicious Activity Reports (SARs)

Suspicious activity reports are made mandatory under the Prevention of Money Laundering and Terrorist Financing Code enacted by the Financial Services Commission (FSC). The FIU Mauritius is responsible for receiving and analyzing SARs.

Penalties for Non-Compliance

Mauritius has set out penalties for non-compliance with reporting requirements, including:

  • Fines not exceeding MUR1m (approximately USD28,620)
  • Imprisonment for a term not exceeding five years
  • Regulatory action may also be taken in the event of non-compliance

Automated Suspicious Transaction Monitoring Technology

There is no specific requirement to use automated suspicious transaction monitoring technology. However, financial institutions are required to review their practices as part of their general external and internal audit processes.

International Cooperation

Mauritius has signed various Memoranda of Understandings with other countries to facilitate the exchange of information related to AML/CFT. It also allows for monitoring transactions outside its jurisdiction.

Conclusion

In conclusion, Mauritius has implemented robust measures to prevent the misuse of its financial system, in line with international standards. The country’s AML/CFT framework is designed to detect and deter money laundering and terrorist financing activities, while ensuring the confidentiality of customer information.

Practical Guidance

  • Risk-Based Approach: Yes
  • Automated Suspicious Transaction Tools: No requirement
  • Enhanced Due Diligence for Correspondent Banking: Yes
  • Minimum Threshold for Reporting Suspicious Transactions: MUR 350,000 (approximately USD91,500)

Additional Information

Prevention of Money Laundering and Terrorist Financing Code

The Prevention of Money Laundering and Terrorist Financing Code was enacted in [year]. The country’s anti-money laundering and combating the financing of terrorism framework is based on international standards set by the Financial Action Task Force (FATF).

FSC Guidelines

The FSC has issued guidelines for effective customer risk assessment, which outlines a risk-based approach to customer due diligence. Certified copies of identification documentation are required when provided.

Case Law

There is no specific legislation that may impact upon the transfer of information to Mauritius. However, banks have a general confidentiality obligation under the Banking Act 2004 to keep customer information confidential, which can only be lifted by way of a court order.