Financial Crime World

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Mauritius Takes Steps to Tackle Money Laundering and Terrorist Financing

Port Louis, Mauritius - The Financial Action Task Force (FATF) has called upon all countries to effectively implement measures to tackle money laundering, terrorist financing, and the financing of proliferation. In response, Mauritius has taken steps to strengthen its legal framework to combat these threats.

Mauritius’ main pieces of legislation relating to money laundering are:

  • Financial Intelligence and Anti-Money Laundering Act 2002 (as amended)
  • Financial Intelligence and Anti-Money Laundering Regulations 2018 (as amended)
  • Financial Intelligence and Anti-Money Laundering (Registration of Reporting Persons) Regulations 2019
  • Part VIIIA of the Banking Act 2004
  • Prevention of Corruption Act 2002

These laws provide for:

  • The establishment of the Financial Intelligence Unit
  • Offences related to money laundering, such as reporting suspicious transactions and preventive measures for financial institutions
  • Penalties for non-compliance with guidelines, directives or instructions issued by the Bank

Money Laundering Offences

Under the FIAML Act, money laundering is defined as an offence under Part II of the Act. This includes:

  • Engaging in a transaction that involves property which is or represents the proceeds of any crime
  • Receiving, possessing, concealing, disguising, transferring, converting, disposing of, removing from or bringing into Mauritius any property which is or represents the proceeds of any crime

Limitation on Payment in Cash and Exempt Transactions

Section 5 of the FIAMLA imposes a limitation on payment in cash. Apart from certain exempt transactions, transactions in cash exceeding 500,000 rupees are prohibited altogether. The following transactions are exempt:

  • Between the Bank of Mauritius and other persons
  • Banks and financial institutions
  • Banks or financial institutions and customers who are established customers

Strengthening Measures

The measures taken by Mauritius demonstrate its commitment to tackling money laundering, terrorist financing, and the financing of proliferation. The country is working towards implementing the FATF Recommendations to ensure that its financial system is robust and effective in combating these threats.

By strengthening its legal framework and implementing measures to prevent money laundering and terrorist financing, Mauritius is taking a proactive approach to protecting its financial system and maintaining stability in the global economy.