FSC's Anti-Money Laundering/Combating Financial Terrorism Code
Section 18(1) of The Financial Intelligence and Anti-Money Laundering Act 2002 (FIAMLA) empowers the FSC to issue codes and guidelines for financial institutions to combat Money Laundering and Terrorism Financing activities. In addition, pursuant to Section 7(1)(a) of the Financial Services Act, the FSC has the power to "make FSC Rules, set standards and provide guidelines" so as to enable it to discharge its functions.
Codes on the Prevention of Money Laundering and Financing of Terrorism are in force and apply to insurance entities, investment businesses and management companies, the service providers operating in the key sectors under the purview of the FSC. The Codes were first issued in 2003 and were subsequently revised in 2005 to be in line with international best practices.
Under the relevant Codes, the Board of the licensees must adopt internal Anti-Money Laundering/Combating Financial Terrorism (AML/CFT) policies and establish procedures as well as allocate responsibilities so as to ensure that the relevant licensees meet their legal obligation regarding AML/CFT.
AML/CFT policies and procedures include inter alia:
- applying effective Customer Due Diligence measures including identifying and verifying the identity of the applicant for business when establishing a business relationship with an applicant for business and risk profiling procedures;
- appointing a Money Laundering Reporting Officer (MLRO);
- establishing documented internal systems to prevent Money Laundering and to report suspicious transactions; and
- conducting ongoing training for members of their staff.
The Codes also take into account the Financial Action Task Force (FATF) (40+9) Recommendations and other international standards including International Organisation of Securities Commission's Principles on Client Identification and Beneficial Ownership for the Securities Industry and International Association of Insurance Supervisors' Anti-Money Laundering Guidance Notes for Insurance Supervisors and Insurance Entities.
Click to download Code for the Prevention of Money Laundering and Terrorist Financing
FSC Regulatory Framework
Prevention and detection of Money Laundering and Financing of Terrorism is essential to ensure the sound repute of the Mauritius International Financial Centre.
Financial Sector Assessment Programme (FSAP)
The FSC voluntarily requested Financial Sector Assessment Programme(FSAP) exercises to be conducted by the International Monetary Fund-World Bank in 2003 and 2007. The main objectives of these exercises were to assess the Mauritian financial sector's strengths, weaknesses and vulnerabilities to macroeconomic shocks, as well as the contribution of the financial services to economic growth.
The AML/CFT framework based on the Forty Recommendations 2003 and the Nine Special Recommendations on Terrorist Financing 2001 of the FATF was also assessed.. The FSAP team recognised that significant steps have been taken by Mauritian authorities in recent years to enhance the AML/CFT framework and that the Mauritian authorities are fully committed to fight Money Laundering and Financing of Terrorism.
The FSC constantly reviews its AML/CFT regulatory framework to meet new standards as set out by other international organisations such as the International Organisation of Securities Commission (IOSCO) and the International Association of Insurance Supervisors (IAIS). The FSC also reviewed its Risk-Based Supervision Framework to ensure compliance of licensees with AML/CFT legislation.
Mauritius is also an active member of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), an associate member of FATF and is committed to implementing the FATF recommendations regionally.