Financial Crime World

Mauritius Issues Guidelines for Financial Institutions on UN Sanctions

The National Sanctions Secretariat has released guidelines for financial institutions in Mauritius to implement targeted financial sanctions under the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019.

Overview of the Guidelines

The guidelines provide an overview of proliferation financing, targeted financial sanctions obligations, implementation procedures, authorizations, and exemptions. Case studies are also included in the annexes to assist financial institutions in complying with the requirements.

Reporting Obligations

Financial institutions are required to report any positive match between a listed party or designated party and their customer’s particulars to the National Sanctions Secretariat and the Bank of Mauritius. The guidelines include two templates for reporting obligations:

  • Template for Notification to the National Sanctions Secretariat under section 23(4) of the Act
  • Template for Reporting Positive Name Match under section 25(2) of the Act

Obligations Under the UN Sanctions Act 2019

Financial institutions must comply with several obligations under the Act, including:

  • Reporting Obligations:
    • Verify whether the details of a listed party or designated party match with their customer’s particulars
    • Identify whether the customer owns any funds or other assets and report it to the National Sanctions Secretariat and the Bank of Mauritius if there is a positive match
  • Internal Controls:
    • Implement internal controls and procedures to ensure effective compliance with the obligations under the Act
  • Sanctions Screening:
    • Screen all clients and transactions against sanctions lists with an effective system that is appropriate to their nature, size, and risk

Supervision and Enforcement

The Bank of Mauritius is responsible for supervising and enforcing compliance by its licensees with the requirements imposed under the Act. Failure to comply may result in monetary penalties.

Conclusion

Financial institutions are advised to familiarize themselves with the guidelines and templates to ensure compliance with the requirements under the UN Sanctions Act 2019. The guidelines and templates are available on the website of the National Sanctions Secretariat.