Mauritius on track to be removed from EU list of high risk third countries after FATF plenary | Dentons
In May 2020, the European Commission (THIS) identified Mauritius as a high risk third country with gaps in its fight against money laundering and terrorist financing (AML / CFT) diet. Such a classification by the EC was made in the light of the Financial Action Task Force (FATF) classifying Mauritius in February 2020 in its “gray list” (ie jurisdiction with strategic deficiencies). The inclusion of Mauritius on the LAB list of high-risk third countries of the EU (the List) became applicable on October 1, 2020.
Following its second Plenary for 2021 held from June 21 to 25, 2021, the FATF took the initial decision that Mauritius has substantially completed its action plan and warrants an on-site assessment (as soon as possible, taking into account the current -19) to verify that the implementation of AML / CFT reforms in Mauritius has started and is continuing, and that the necessary political commitment remains in place to support the implementation in the to come up.
It was further noted that Mauritius has made the following key reforms, including:
- carry out awareness-raising actions to promote understanding of the risks and obligations associated with money laundering and the financing of terrorism;
- develop effective risk-based supervision plans for the Mauritius Financial Services Commission;
- ensure timely access to basic information and on precise beneficial owners by competent authorities; and
- provide training to law enforcement authorities to ensure they have the capacity to conduct money laundering investigations.
In the event of a positive on-site assessment, Mauritius will be removed from the FATF gray list (potentially in October 2021), which in turn would result in its removal from the list by the EU. Such removal from the List would be a justified result following the progress made by Mauritius from a legal, compliance and regulatory point of view in order to resolve the problems related to the level of efficiency of its AML / CFT system in place. .
Mauritius ranks first among African countries, 13th in the world in the World Bank’s Ease of Doing Business 2020 report and remains politically stable and a prime domicile for structuring cross-border investments in Africa and Asia. .