On 25 June 2021, the Financial Action Task Force (FATF) published a document summarising the outcome of the FATF plenary meeting.
It has been confirmed in its update published today that Mauritius has substantially completed its action plan at a technical level and warrants an on-site visit assessment.
This visit will verify that the implementation of Mauritius’s AML/CFT reforms has begun and is being sustained and that the necessary political commitment remains in place to sustain implementation in the future.
The FATF also highlighted that Mauritius made the following key reforms, including by:
- conducting outreach to promote understanding of Money Laundering and Financing of Terrorism risks and obligations
- developing risk-based supervision plans effectively for the Financial Services Commission
- ensuring access to accurate essential and beneficial ownership information by competent authorities promptly
- providing training for law enforcement authorities to ensure that they can conduct money laundering investigations.
The FATF concludes its report by saying that it will conduct an on-site visit at the earliest possible date.
Carpus Tax Observations:
This is very positive news for Mauritius. This June 2021 update should pave the way for Mauritius to be removed from the FATF Grey List at the next plenary meeting.
The general rule is that an onsite inspection is reserved for countries that have completed all their obligations. It is the last stage before removal from the FATF Grey List.
Following a positive result from the onsite inspection, Mauritius is highly likely to be removed from the FATF Grey List at the next plenary meeting before the end of 2021.
Subject to this removal from the FATF Grey List, Mauritius will also be removed from the European Union list of High-Risk Third Countries for AML/CFT purposes (known as the Black List). The European Commission has confirmed this subsequent removal in writing.