Financial Crime World

Here is the rewritten article in markdown format:

Mauritius Embarks on Risk-Based Approach to Combat Money Laundering and Terrorist Financing

Port Louis, Mauritius - In a bid to effectively combat money laundering and terrorist financing (ML/TF) activities, Mauritius has taken a significant step by implementing a risk-based approach. This initiative is in line with the Financial Action Task Force (FATF) Recommendation 1, which requires countries to identify, assess, and understand their ML/TF risks.

National Money Laundering and Terrorism Financing Risk Assessment (NRA)

According to a report released on August 29, 2019, the country conducted its first NRA in January 2017 using the World Bank’s National Money Laundering and Terrorism Financing Risk Assessment Tool. The assessment aimed at identifying, understanding, and assessing the ML/TF risks faced by Mauritius.

Sector-Specific Risk Assessments

In addition to the comprehensive NRA report, Mauritius has also conducted sector-specific risk assessments:

  • Non-Profit Organization (NPO) Sector: A risk assessment commissioned by the Government of Mauritius as part of its commitment to combat the financing of terrorism. The report, which was completed with support from EU-funded Global AML/CFT Facility Consultants, assessed the overall inherent TF risk of NPOs in Mauritius as Low-Medium.
  • Virtual Assets and Virtual Asset Service Providers (VASPs): A national ML/TF risk assessment conducted in 2021 identified 12 different VASP channels across three sectors - banking, non-bank financial institutions, and informal sector - with a combined ML/TF residual risk rated High to Very High.

A New Era for AML/CFT

The implementation of a risk-based approach to combating ML/TF activities marks a significant shift in Mauritius’s anti-money laundering and counter-terrorism financing (AML/CFT) regime. This new era is expected to enhance the country’s ability to effectively combat financial crime, protect its financial system, and maintain its international reputation as a reputable financial center.

Conclusion

As Mauritius continues to strengthen its AML/CFT regime, it is clear that the risk-based approach will play a crucial role in mitigating ML/TF risks and ensuring the integrity of its financial system.