Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Framework

Legislative framework to fight Money Laundering and Financing of Terrorism

Mauritius adheres to international initiatives to combat Money Laundering and Financing of Terrorism. Various legislations were enacted and include:

• The Financial Intelligence and Anti-Money Laundering Act 2002 (FIAMLA)
• The Prevention of Corruption Act 2002
• The Prevention of Terrorism Act 2002

The Convention for the Suppression of the Financing of Terrorism Act 2003 provides for the International Convention for the Suppression of the Financing of Terrorism to have force of law in Mauritius.

Combating Money Laundering and Financing of Terrorism through effective exchange of information

The FSC has the power to exchange information with public sector agencies, international organisations, foreign supervisory institutions or law enforcement agencies.

In addition, several Memoranda of Understanding (MOUs) were signed between the FSC and regulatory bodies (including foreign supervisory bodies) to address the framework for mutual assistance and exchange of information. The main objectives of the MOUs are inter alia to:

• consolidate supervision of cross-border operations of financial institutions;
• define mechanisms to share information in accordance with international standards; and
• reinforce collaboration amongst institutions in the fight against crime, Money Laundering and Financing of Terrorism.

In particular, the FSC signed a Memorandum of Understanding (MOU) with the Financial Intelligence Unit (FIU) which describes the ways in which both institutions will cooperate in preventing Money Laundering and the Financing of Terrorism.  The FSC, in compliance with Section 22 of the Financial Intelligence and Anti-Money Laundering Act 2002, forwards any information on the possibility of a money laundering offence or suspicious transaction to the FIU.

In addition, pursuant to the provisions of the Mutual Assistance in Criminal and Related Matters Act 2003, a foreign authority may, in relation to a serious offence, make a request to the Attorney General for assistance in any judicial proceedings carried in their jurisdiction state.

United Nations Security Council measures

As part of its supervisory framework to combat Money Laundering and Financing of Terrorism, the FSC regularly communicates to its licensees updates on the List of Persons/Entities suspected of Terrorism issued by the United Nations Security Council (UNSC).  Licensees are required to verify whether they maintain any accounts or otherwise hold any fund, other financial assets, economic benefits and economic resources for individuals or entities as reported by the UNSC.  Licensees are thus required to take necessary actions and report to the FSC any link found with the reported persons/entities in accordance with the UNSC Resolution United Nations Security Council Resolutions (UNSCRs).

Investors Alerts

The FSC ensures, as part of its surveillance mechanism, that there is proper dissemination of investor alerts and warnings from international bodies such as IOSCO and other regulatory bodies to relevant stakeholders. These investor alerts and warnings typically refer to entities which are not authorised to provide investment services from the relevant jurisdiction.