Mayotte Tightens Financial Crime Investigation Process
The government of Mayotte has announced new measures aimed at strengthening its financial crime investigation process, curbing fraudulent activities, and preventing money laundering.
Regulatory Focus Areas
- Terrorist financing
- Beneficial ownership
- Sanctions/tax evasion
- Consumer scams
- Potential compliance violations
Robust AML/CFT Frameworks and Risk Mitants
The government has emphasized the need for robust Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) frameworks and risk mitigants to prevent illicit exploitation of access to the financial system.
Evolving Threat Landscape
Regulators have highlighted the importance of fraud models, operations, and investigation processes, as well as insider corruption and cybercrime. The increasing sophistication of perpetrators and evolving technological developments in the financial sector require a proactive approach to stay ahead of emerging threats.
Crypto and Digital Assets Regulation
The government has announced plans to expand regulations to include crypto and digital assets, focusing on combating threats and vulnerabilities posed by these emerging technologies. Investigations and enforcement will lead to more actions against non-compliance with existing regulations, including:
- Illegally offered crypto asset derivatives products
- False statements about stablecoin assets
AML for NFTs and DeFi Platforms
The government has emphasized the need for increased attention to Anti-Money Laundering (AML) for Non-Fungible Tokens (NFTs) and Decentralized Finance (DeFi) platforms, as well as sanctions and price cap compliance.
Final Rules on Beneficial Ownership Information Reporting
Final rules on beneficial ownership information reporting and analysis are expected to be implemented, ensuring transparency and accountability in financial transactions.
Fintech and Payments Companies
Regulators have called on fintech and payments companies to:
- Eliminate antiquated technology
- Establish mature conduct risk programs
- Strengthen controls in regulatory focal areas
- Ensure responsible leverage of technology and data to monitor activity, coupled with a deep focus on customer experience
Enhanced Governance
Experts have highlighted the importance of governance in preventing financial crime. Companies and boards are expected to enhance risk and compliance frameworks for effective oversight and governance.
Effective Date
The new measures are set to take effect in the coming months, marking a significant step towards enhancing Mayotte’s anti-money laundering and counter-terrorism financing efforts. Regulators have promised to continue monitoring developments and adapting their approach to stay ahead of emerging threats.
Conclusion
The government’s new measures aim to ensure that Mayotte’s financial system remains secure and efficient. The move is seen as a major boost for the country’s efforts to combat financial crime and maintain a stable and secure financial system.