Anti-Money Laundering Compliance in Mauritius

Mauritius maintains a comprehensive anti-money laundering and counter-terrorism financing framework. The principal legislation is the Financial Intelligence and Anti-Money Laundering Act 2002, supplemented by the Proceeds of Crime Act 2011 and the Prevention of Terrorism Act 2002.

The FIU and Reporting Obligations

The Financial Intelligence Unit, established under Section 5 of the FIAMLA, is the national central unit for receiving, analysing, and disseminating suspicious transaction reports.

Section 14 of the FIAMLA imposes an obligation on reporting entities to file Suspicious Transaction Reports with the FIU where there are reasonable grounds to suspect that a transaction involves the proceeds of crime, is related to money laundering, or is connected to the financing of terrorism. The obligation applies regardless of the amount involved. Failure to report is a criminal offence carrying a penalty of up to MUR 10 million and imprisonment for up to five years.

Customer Due Diligence

Section 17 of the 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 and verification of the beneficial owner's identity
• Understanding the purpose and intended nature of the business relationship
• Ongoing monitoring of the business relationship, including scrutiny of transactions

Enhanced due diligence is required for politically exposed persons, as defined in Section 2 of the FIAMLA, and for customers from higher risk jurisdictions.

FATF Assessment

Mauritius was removed from the FATF grey list in October 2021, having substantially improved its compliance with the FATF recommendations. The country was assessed as having addressed the strategic deficiencies identified during the previous round of mutual evaluation. Continued compliance remains critical.

Penalties

In addition to the penalties for failure to report, the FIAMLA provides for fines of up to MUR 10 million for institutions and imprisonment for up to 15 years for money laundering offences under the Proceeds of Crime Act 2011. The FSC and the Bank of Mauritius retain the power to revoke licences for serious or persistent non-compliance.

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