Financial Crime World

Mauritius Issues Guidelines for Financial Institutions on Targeted Sanctions

The National Sanctions Secretariat has released guidelines to help financial institutions in Mauritius comply with targeted financial sanctions imposed by the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019. The guidelines provide an overview of proliferation financing, targeted financial sanctions obligations, and implementation procedures for reporting persons.

Overview of Guidelines

The guidelines aim to assist banks and other financial institutions licensed by the Bank of Mauritius in implementing the restrictive measures prescribed under the Act. They outline case studies in annexes and provide two templates for reporting obligations:

  • One template for notification to the National Sanctions Secretariat
  • Another template for reporting positive name matches

Responsibilities of Financial Institutions

Financial institutions are required to ensure adherence to provisions related to funds and assets of listed parties or designated parties. Specifically, they must:

  • Immediately notify the National Sanctions Secretariat if they hold, control, or have custody of such funds or assets
  • Regularly consult the United Nations Security Council Consolidated List
  • Take immediate action upon any changes brought thereto
  • Comply with reporting obligations, including:
    • Verifying customer details against sanctions lists
    • Submitting reports to the National Sanctions Secretariat and the Bank of Mauritius

Importance of Internal Controls and Sanctions Screening

The guidelines emphasize the importance of:

  • Internal controls
  • Sanctions screening
  • Policies and procedures to investigate and escalate alerts generated by potential matches indicating sanctions risks

Supervision by the Bank of Mauritius

Supervision by the Bank of Mauritius is crucial, as it is required to enforce compliance with the requirements imposed under the Act. Failure to comply may result in monetary penalties.

Availability of Guidelines and Templates

The guidelines and templates are available on the National Sanctions Secretariat’s website for easy access.