Financial Intelligence Unit: New Guidelines Issued for Banks, Financial Institutions

Strengthening Efforts Against Money Laundering and Terrorist Financing

The Financial Intelligence Unit (FIU) has issued new guidelines to banks, financial institutions, cash dealers, controllers or auditors of credit unions, and other relevant professionals on the manner in which they should report suspicious transactions and provide additional information to the FIU. These guidelines are part of the FIU’s efforts to strengthen its role in combating money laundering and terrorist financing.

Reporting Suspicious Transactions

According to the guidelines, these entities must report all suspicious transactions under section 14 of the Act, as well as provide any additional information requested by the FIU. The guidelines also emphasize the importance of exchanging information with overseas financial intelligence units and comparable bodies, undertaking research projects to identify the causes of money laundering and terrorist financing, and performing other functions conferred on it under the Asset Recovery Act.

FIU’s Functions

The FIU exercises its functions under the direction of the Director or designated personnel, who consult with relevant authorities and stakeholders in Mauritius, including law officers, the Police, and government agencies. This collaboration is crucial in ensuring that the FIU’s functions are carried out effectively and efficiently.

Board Established to Oversee FIU

A Board has been established to oversee the FIU’s activities and ensure that it discharges its functions in accordance with the Act. The Board consists of a Chairperson, who must have served as a Judge or had significant experience in the legal profession, and two other members with high repute, one from the financial services industry and the other from the legal profession.

The Board is responsible for reviewing the FIU’s budgetary estimates, issuing instructions on financial management, advising the Director on matters related to the discharge of its functions, and considering the annual report of the FIU. The Board’s recommendations are also submitted to the Minister.

Effective Implementation

The implementation of these guidelines is crucial in ensuring that the FIU effectively discharges its functions under the Act. The unit plays a critical role in supporting law enforcement agencies in their efforts to combat money laundering and terrorist financing, and its effective functioning is essential in maintaining Mauritius’ reputation as a stable and secure financial center.

Background

The FIU was established under the Financial Intelligence Unit Act 2003, which aimed to strengthen the country’s anti-money laundering and combating the financing of terrorism regime. The unit has undergone several revisions since its establishment, with the latest amendments introduced in 2019 to enhance its functions and effectiveness.