Financial Crime World

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Terrorist Financing Exposed: Mauritius’ Non-Profit Sector Under Scrutiny

The Government of Mauritius, with support from the European Union-funded Global AML/CFT Facility Consultants, has conducted a comprehensive risk assessment to identify vulnerabilities in the non-profit sector (NPO) that could be exploited by terrorist financiers.

The Assessment

The assessment aimed to comply with the Financial Action Task Force’s (FATF) Recommendation 8 and Immediate Outcome 10, which requires countries to identify NPOs at risk of terrorist financing abuse. The study focused on four types of NPOs: associations, foundations, trusts, and companies limited by guarantee.

Data Collection

Researchers gathered data from:

  • A survey of 879 NPOs
  • Submissions from the Financial Intelligence Unit (FIU) and Bank of Mauritius
  • Questionnaires from nine law enforcement agencies
  • Interviews with eight supervisory bodies
  • Reviews of relevant laws and literature

A combined qualitative and quantitative assessment was undertaken to identify potential risks.

Findings

While there are no known cases or suspicions of terrorist financing abuse in Mauritius’ NPO sector, the study identified three possible threats:

  • Abuse of NPOs to promote extremist ideologies
  • Finance foreign terrorist fighters
  • Fund terrorism overseas

The assessment also highlighted features, characteristics, and activities that increase the risk of terrorist financing abuse among NPOs in Mauritius, including:

  • Cross-border movement of funds
  • Alternative sources of funds
  • Involvement in complex international transactions
  • Cash fundraising from anonymous sources
  • Ethnic or religious activities linked to extremist causes

Assessment Results

Based on these findings, the overall inherent risk of terrorist financing abuse of NPOs in Mauritius was assessed as Low-Medium. The study concludes that while there is a low risk of terrorist financing abuse, it is essential for authorities to remain vigilant and monitor NPO activities closely to prevent potential threats.

Conclusion

The Mauritian government’s effort to assess the terrorist financing risks in its non-profit sector demonstrates its commitment to combating terrorism and preventing the misuse of charitable funds.