Mauritius aligns itself with the EU directive on AML-CFT

July2020/By Hans Hurkoo/In Publications

The Anti-Money Laundering and Combatting the Financing of Terrorism (Miscellaneous Provisions) Act 2020 (the “Act”), giving effect to the EU Directive on Anti Money Laundering and Counter Terrorist Financing, came into force on 9 July 2020.

The Act amends various enactments with a view to reinforcing the existing legal provisions to further combat money laundering and terrorism financing, ensuring closer compliance with recommended international best practices and norms of the Financial Action Task Force (FATF).

Core Act measures include:

  • identification and verification of the identity of clients, in particular, beneficial owners, with the expansion of the scope beneficial ownership reporting;
  • transaction monitoring; and
  • suspicious transactions reporting.

The Act demonstrates the commitment of the Mauritian Government to remove Mauritius from the EC blacklist and FATF monitoring list.

As part of its AML-CFT Action Plan, the Mauritian Government has also set up a National AML- CFT Core Group. Its function is to monitor progress on the implementation of the remaining FATF recommendations.

Its action plan entails:

  • Ensuring that law enforcement agencies in the global business industry and designated non-financial businesses and professionals have implemented risk-based supervision. The Financial Services Commission has already conducted over 100 onsite inspections. Additionally, the Gambling Regulatory Authority (GRA) has established guiding principles in respect of casinos and other gambling entities while the FIU has instituted rules for the designated non-financial business professionals.
  • Allowing information on beneficial ownership to be accessed by relevant authorities, most of which is readily available. Entities falling under the supervision of the GRA are already required to submit a list of their shareholders, directors and beneficial owners.
  • Ensuring that all relevant authorities have adequate investigative powers with regards to money laundering and complex cases. The Attorney General’s office has already trained over 90 officers to ensure adequate investigation and monitoring.
  • Surveillance on NGO’s to ensure anti-terrorism financing. The Registrar of Associations has begun an investigation to identify the NGOs at risk.
  • Adequate plans for targeted financial sanctions.