Mauritius exits the FATF List of Jurisdictions Under Increased Monitoring…

At its October 2021 Plenary, the FATF concluded that Mauritius would no longer be
subject to increased monitoring by the FATF. The FATF welcomes Mauritius’s significant
progress in improving its AML/CFT regime. Mauritius has strengthened the effectiveness
of its AML/CFT regime and addressed related technical deficiencies to meet the
commitments in its action plan regarding the strategic deficiencies that the FATF identified
in February 2020. Mauritius is therefore no longer subject to the FATF’s increased
monitoring process. Mauritius will continue to work with ESAAMLG to improve further
its AML/CFT system.
In February 2020, the Financial Action Task Force (FATF) decided that Mauritius should be
monitored under the formal FATF International Cooperation Review Group (ICRG) process as a
result of strategic deficiencies identified, by the FATF, in its anti-money laundering and
combating terrorism financing (AML/CFT) system. The FATF, accordingly, placed Mauritius on
its public document of “Jurisdictions under Increased Monitoring”, referred to as the “Grey
List”.
At the same time, in order to exit that List, Mauritius was called upon by the FATF to implement
an Action Plan within agreed timelines, aimed at strengthening the effectiveness of its AML/CFT
system. The Action Plan included, amongst others, the implementation of risk based supervision
of the global business and Designated Non-Financial Businesses and Professions (DNFBPs)
sector, timely access to accurate basic and beneficial ownership information by competent
authorities, providing training for the law enforcement agencies to conduct parallel financial
investigations, supervision of the NPO sector and adequate implementation of targeted financial
sanctions through outreach and supervision.
At the beginning of June 2021, the FATF made the initial determination that “Mauritius has
substantially completed its Action Plan and warrants an on-site assessment to verify that the
implementation of Mauritius’ AML/CFT reforms has begun and is being sustained, and that the
necessary political commitment remains in place to sustain implementation in the future.” It is to
be highlighted that, in June 2021, Mauritius had largely addressed all the items on its Action
Plan, ahead of the agreed timelines.
The Africa/Middle East Joint Group of the FATF undertook the onsite visit to Mauritius on 13 to
15 September 2021. Following the work sessions with the Mauritius delegation during the onsite
visit, the Joint Group confirmed that all the action items have been addressed by Mauritius, and
that the requisite conditions are in place for the reforms to be sustained and enhanced in the
future.
During the ICRG process, Mauritius has worked closely with the FATF and the Eastern and
Southern Africa Anti-Money Laundering Group (ESAAMLG). Mauritius also benefited from
the technical assistance from the European Union through the EU AML/CFT Global Facility, the
German Agency for International Cooperation (GIZ), UK, France, IMF, UNODC, the World
Bank and other friendly nations and international organizations which has assisted in improving
our AML/CFT framework.
The private sector operators, as a key partner, has also been instrumental in the fight against
money laundering, terrorism and proliferation financing. The private sector has displayed an
unprecedented spirit of team work and very strong collaboration in the national effort to honor
our commitment to implement the Action Plan.
At the time of the adoption of the Mutual Evaluation Report in July 2018, Mauritius was rated
largely compliant or compliant with only 14 of the 40 FATF recommendations. As a result of an
overhaul of the AML/CFT legal framework, Mauritius is now compliant or largely compliant
with 39 out of the 40 FATF Recommendations, following the recent adoption of three additional
technical compliance upgrades by the ESAAMLG Council of Ministers in September 2021.
The Core Group on AML/CFT, chaired by the Financial Secretary and co-chaired by the
Governor of the Bank of Mauritius and the Director General of the Independent Commission
against Corruption, was instrumental in overseeing the preparations and implementation of the
Action Plan. The Core Group was initially set up to develop and coordinate the strategies,
policies and actions required to ensure the implementation of the recommended actions in the
2018 Mauritius Mutual Evaluation Report. The establishment of the Core Group has now been
enshrined in July 2021 in the Financial Intelligence and Anti-Money Laundering Act (FIAMLA),
to ensure sustainability and continuity in our AML/CFT strategy.
All these measures demonstrate the unflinching commitment of the Government of Mauritius to
ensure the sustainability and effectiveness of its national strategy to combat money laundering,
terrorism financing and proliferation financing in the future, well beyond the ICRG process. The
Government reiterates its strong political commitment to sustain the AML/CFT reforms and the
fight against Money Laundering and Terrorism Financing.
The FATF Plenary decision is a global acknowledgement of the effectiveness of the Mauritius
public and private sector institutions and their cooperation in combating money laundering and
terrorism finance.
The Government also reiterates its commitment to continue to work closely, and partner, with
ESAAMLG, and the international AML/CFT community, to further enhance the Mauritius
AML/CFT reforms as well as across the region.
Ministry of Financial Services and Good Governance and Core Group 21 October 2021