Mauritius Steps Up Efforts to Combat Money Laundering and Financing of Terrorism

As a key player in the global financial landscape, Mauritius has been actively working to combat money laundering and financing of terrorism through its robust legislative framework and exchange of information with international partners.

Legislative Framework

The country’s efforts are anchored on various legislations, including:

Financial Intelligence and Anti-Money Laundering Act 2002 (FIAMLA): regulates the financial sector and provides for the reporting of suspicious transactions.
Prevention of Corruption Act 2002: aims to prevent corruption and bribery in public office.
Prevention of Terrorism Act 2002: prohibits acts of terrorism and provides for the prosecution of terrorists.
Convention for the Suppression of the Financing of Terrorism Act 2003: ratifies the International Convention for the Suppression of the Financing of Terrorism.

Code of Conduct

The Financial Services Commission (FSC) has issued a comprehensive code on the prevention of money laundering and terrorist financing, which applies to all its licensees. This single document consolidates all existing regulations and guidelines into one framework, making it easier for financial institutions to comply with anti-money laundering (AML) and combating the financing of terrorism (CFT) requirements.

Cooperation with Authorities

The FSC also has the power to exchange information with:

Public sector agencies
International organisations
Foreign supervisory institutions or law enforcement agencies

The commission has signed several memoranda of understanding (MOUs) with regulatory bodies, including foreign supervisory bodies, to facilitate mutual assistance and exchange of information in the fight against money laundering and financing of terrorism.

The FSC’s cooperation with other authorities is crucial in preventing these illicit activities. For instance:

The commission forwards any information on suspicious transactions or money laundering offences to the Financial Intelligence Unit (FIU).
Foreign authorities can request assistance from the Attorney General in relation to serious offences.

International Cooperation and Assessment

Mauritius has been subject to Financial Sector Assessment Programme (FSAP) exercises conducted by the International Monetary Fund-World Bank. The country’s AML/CFT framework was assessed against the Forty Recommendations 2003 and the Nine Special Recommendations on Terrorist Financing 2001 of the Financial Action Task Force (FATF). The FSAP team recognised Mauritius’ significant progress in enhancing its AML/CFT framework.

Ongoing Review and Improvement

The FSC regularly reviews its regulatory framework to ensure compliance with new international standards set by organisations such as:

International Organisation of Securities Commission
International Association of Insurance Supervisors

The commission also reviewed its risk-based supervision framework to ensure that licensees comply with AML/CFT legislation.

Regional and Global Commitment

As an active member of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) and an associate member of FATF, Mauritius is committed to implementing regional recommendations on combating money laundering and financing of terrorism.

Investor Protection

Investors are also protected through the FSC’s surveillance mechanism, which ensures proper dissemination of investor alerts and warnings from international bodies such as:

International Organisation of Securities Commission
Other regulatory bodies

These alerts typically refer to entities that are not authorised to provide investment services from the relevant jurisdiction.