Outreach
As part of its Offsite Supervision, the Financial Services Commission (the “FSC”) launched the FSC Independent Audit Thematic Questionnaire (“IA Questionnaire”) on 15 October 2021.
The IA Questionnaire is an offsite supervisory tool aimed to assist the FSC in monitoring its licensees on Anti-Money Laundering /Countering the Financing of Terrorism issues, as well as identifying and mitigating emerging Money Laundering / Terrorism Financing risks in a timely manner.
In this respect, an Independent Audit Information Note (‘IA Information Note’) has been put together which highlights the good practices adopted by the FSC licensees and the deficiencies gathered from the IA Questionnaire. The aim of the IA Information Note is also to strengthen the understanding of FSC licensees towards their independent audit obligations.
The IA Information Note on ‘Overview of Independent Audit practices by FSC licensees’ can be viewed here.
As part of its Offsite Supervision, the Financial Services Commission (the “FSC”) launched its 1st Cycle of the Transaction Monitoring and Suspicious Transaction Report Questionnaire (“STR Questionnaire”) in October 2020.
The STR Questionnaire is an offsite supervisory tool aimed to assist the FSC in monitoring its licensees on Anti-Money Laundering /Countering the Financing of Terrorism (“AML/CFT”) issues, as well as identifying and mitigating emerging Money Laundering / Terrorism Financing (“ML/TF”) risks in a timely manner.
In this respect, the STR Presentation highlights the good practices adopted by the
FSC licensees and the deficiencies identified. The aim of the presentation is also to strengthen the transaction monitoring and STR obligations of FSC licensees.
The STR Presentation on ‘Overview of Transaction Monitoring and Suspicious Transaction Report filing practices by FSC licensees’ can be viewed here.
Targeted Financial Sanctions (‘TFS’) refer to the measures for asset freezing and prohibitions to prevent funds or other assets from being made available, directly or indirectly, for the benefit of designated persons and entities.
Recommendation 6 of the Financial Action Task Force requires each country to implement the targeted financial sanctions regimes to comply with the United Nations Security Council Resolutions (UNSCRs) relating to the prevention and suppression of terrorism and terrorist financing.
In this respect, the presentation on TFS and PF provides an overview of the FATF Recommendations and highlights the objective of TFS and PF supervision system in Mauritius as well as the corresponding challenges.
The Presentation on Targeted Financial Sanctions and Proliferation Financing can be accessed here.
The Financial Action Task Force (FATF) Recommendation 1 states that in implementing a Risk Based Approach, Financial Institutions (FIs) should have in place processes to identify, assess, monitor, manage and mitigate money laundering and terrorist financing risks.
Recommendation 18 of the FATF requires financial institutions’ programmes against Money Laundering and Terrorist Financing (ML/TF) to include an independent audit function to test the system.
In order to assist Financial Institutions in applying national measures to combat ML/TF, the FSC Mauritius has updated the Anti-Money Laundering and Combatting the Financing of Terrorism (AML/CFT) Handbook on 31 March 2021 by elaborating on Business Risk Assessment and a new chapter on Independent Audit.
In this respect, the presentation on Independent Audit & Business Risk Assessment will address the common queries raised by the industry and act as a guidance to properly adhere to all AML/CFT parameters.
The Presentation on Independent Audit & Business Risk Assessment can be accessed here.
Mauritius recognizes the importance of implementing robust measures in line with international standards, particularly the Financial Action Task Force (FATF) Recommendation 6, which mandates the effective implementation of Targeted Financial Sanctions (TFS) related to Terrorism & Terrorist Financing (TF) and FATF Recommendation 7 related targeted financial sanctions in relation to Proliferation Financing (PF).
The TFS obligations under the United Nations Security Council Resolutions and the FATF Recommendations are enshrined in the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019.
The Technical Sub-Committee of the Interagency Coordination Committee (ICC) in collaboration with the Financial Services Commission has prepared a Frequently Asked Questions (FAQ) document in relation to TFS. It is intended to assist Financial Institutions and other stakeholders in understanding their obligations under the TFS regime.
As part of the risk-based approach, this FAQ provides clear guidance in the effective implementation of TFS measures to comply with the national and international obligations and ensures a harmonised understanding to combat TF/PF abuse.
The FAQs on TFS posted on the website of the FSC can be accessed here.
Disclaimer
The information provided in this FAQ is for general guidance and informational purposes only. It does not constitute legal, regulatory and professional advice.