MAURITIUS Law and Practice Contributed by: Valerie Bisasur, Jean-Vincent Dacruz and Shane Mungur, BLC Robert & Associates
Mauritius’ AML/CFT framework is spread across several pieces of legislation, namely: • the Financial Intelligence and Anti-Money Laundering Act 2002; • the Financial Intelligence and Anti-Money Laundering Regulations 2018; • the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019; • the Prevention of Terrorism Act 2002; • the Convention for Suppression of the Financing of Terrorism Act 2003; • the Financial Services Act 2007; and • Part VIIIA of the Banking Act. The BoM is the designated AML/CFT supervi - sory authority over financial institutions under its purview, and is required to supervise financial institutions with respect to the AML/CFT require - ments set out under the banking laws. To provide guidance and assist banks in comply - ing with their AML/CFT requirements, the BoM has issued a Guideline on “Anti-Money Launder - ing and Combating the Financing of Terrorism and Proliferation” (the “BOM Guideline”). The BOM Guideline sets out the broad param - eters within which financial institutions (includ - ing their branches and subsidiaries), members of their boards of directors, management and employees should operate to counter and pre - vent money laundering and terrorism financing (ML/TF). The BOM Guideline stresses that financial insti - tutions and their senior management are required to design and implement their own policies, pro - cedures and controls to meet the relevant AML/ CFT statutory and regulatory requirements.
To mention a few, banks are required to con - duct risk assessments and to apply a risk-based approach to their customer due diligence proto - cols, controls and procedures, in order to miti - gate and effectively manage the risks of ML/TF. The nature and extent of any assessment of ML/ TF risks must be appropriate to the nature and size of the business of the bank and the type of transaction or product offered, and must con - sider all other relevant risk factors such as the nature, scale and location of the customer. Banks are also required to report any transac - tions that give rise to a reasonable suspicion of ML/TF to the Financial Intelligence Unit (estab - lished under FIAMLA). In terms of corporate governance, banks are also statutorily required to appoint a compliance officer and a money laundering reporting officer (MLRO). The BOM Guideline recommends that the compliance officer and the MLRO be two distinct persons. However, it is left to the finan - cial institutions to decide whether the compli - ance officer may also assume the functions of the MLRO. Non-compliance with the BOM Guideline is pun - ishable, on conviction, with a fine not exceeding MUR1 million and, if not remedied, with a further fine of MUR100,000 for every day or part of a day during which the offence continues. 6. Depositor Protection 6.1 Deposit Guarantee Scheme (DGS) The Mauritius Deposit Insurance Scheme was established under the Mauritius Deposit Insur - ance Scheme Act 2019 to provide protection, up to a certain level, to depositors in the event
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