Anti-Money Laundering Obligations for Virtual Asset Service Providers in Mauritius

Virtual asset service providers (VASPs) operating in Mauritius are subject to stringent anti-money laundering and counter-terrorism financing (AML/CFT) obligations. Section 15 of the Virtual Asset and Initial Token Offering Services Act 2021 (VAITOSA) requires VASPs and issuers of initial token offerings to comply with the Financial Intelligence and Anti-Money Laundering Act 2002 (FIAMLA).

Customer Due Diligence

Section 17 of FIAMLA requires reporting entities to apply customer due diligence measures. These include identification of the customer and verification of identity using reliable, independent source documents, identification of the beneficial owner, understanding the purpose and intended nature of the business relationship, and ongoing monitoring of the business relationship.

Transaction Monitoring

VASPs must implement systems to monitor transactions for suspicious activity. Section 14 of FIAMLA imposes an obligation to file Suspicious Transaction Reports with the Financial Intelligence Unit where there are reasonable grounds to suspect that a transaction involves the proceeds of crime or is connected to the financing of terrorism.

Record-Keeping

VASPs must maintain records of transactions and customer due diligence measures for a period of at least seven years. Records must be sufficient to permit reconstruction of individual transactions and to provide, if necessary, evidence for prosecution of criminal activity.

FATF Alignment

Mauritius was removed from the FATF grey list in October 2021. The AML/CFT requirements applicable to VASPs under VAITOSA and FIAMLA align with FATF standards on virtual assets, including the updated guidance issued in October 2021.

This article is for general information purposes only and does not constitute legal advice.