Mauritius Takes Stronger Stand Against Financial Crime and Risk Management
A Significant Step in Combating Money Laundering and Terrorism Financing
On August 29, 2019, Mauritius took a significant step in combating financial crime by issuing its first National Money Laundering and Terrorism Financing Risk Assessment (NRA) Report. The report was launched in January 2017 using the National Money Laundering and Terrorism Financing Risk Assessment Tool developed by the World Bank.
Understanding and Assessing Money Laundering and Terrorist Financing Risks
The NRA aimed to identify, understand, and assess the money laundering and terrorist financing risks faced by Mauritius. This report provides valuable guidance for policymakers and stakeholders, helping them articulate policies and strategies to address identified risks and allocate resources effectively.
A Risk-Based Approach to Combating Financial Crime
The assessment examined various factors, including:
- The scale and characteristics of criminal activity proceeds from internal and external sources
- Terrorism financing in Mauritius
- Weaknesses in combating money laundering and terrorist financing
- Gaps in the financial services sector and designated non-financial businesses and professions (DNFBPs)
Assessment Results
According to the NRA report, Mauritius faces a Medium-High overall ML risk and a Medium overall TF risk.
Additional Assessments
The Government of Mauritius also commissioned a risk assessment for the Non-Profit Organization (NPO) sector, which was completed with support from EU-funded Global AML/CFT Facility Consultants. The report found that the inherent TF risk of NPOs in Mauritius is Low-Medium.
In addition, Mauritius conducted its National ML/TF Risk Assessment of Virtual Assets and Virtual Asset Service Providers (VASPs) in 2021. According to the report, 12 VASP channels were identified across three sectors, with a combined ML/TF residual risk rated High to Very High.
Commitment to Combating Financial Crime
These assessments demonstrate Mauritius’ commitment to combating financial crime and risk management, aligning with international standards set by the Financial Action Task Force (FATF).