Central Bank committed to consolidate framework on Anti Money Laundering/Combating Financing of Terrorism

The Bank of Mauritius (BOM) is committed to consolidate the Anti Money Laundering (AML)/Combating Financing of Terrorism (CFT) framework. It will continue to implement all the recommendations of the Eastern and Southern Africa Anti-Money Laundering Group (‘ESAAMLG’) as listed down in its 2nd Round Mutual Evaluation Report for Mauritius on its assessment of the country’s level of compliance with the FATF forty recommendations and the level of effectiveness of its AML/CFT system.
In a communiqué published on 2 October 2018, BOM states that significant improvements have been made to its AML/ CFT regulatory and supervisory framework. In a bid to address the recommendations made in the report, a remediation process has been launched through the deployment of an elaborate action plan. Measures already initiated include the implementation since January 2018 of a World Bank assisted AML/CFT supervisory framework; and the setting up a dedicated arm for AML/CFT supervision of financial institutions. The AML/CFT off-site monitoring supervisory toolkit has been enhanced through a revision of its reporting requirements.

Furthermore, technical deficiencies in the legislation have been addressed to a large extent through a number of amendments brought to the Bank of Mauritius Act, Banking Act and Financial Intelligence and Anti-Money Laundering Act in the Finance (Miscellaneous Provisions) Act 2018, says the communiqué.

The report noted that the BOM, as the regulator of the banking sector, has issued Guidance Notes on Combating Money Laundering and the Financing of Terrorism (Guidance Notes) for its licensees. There is a high degree of consistency of the Bank’s Guidance Notes with the FATF Standards in respect of adoption of Customer Due Dilligence (CDD) measures, which has promoted understanding and application of the CDD obligations by the financial institutions. This was enhanced by the engagement of the Bank with its regulated entities in various fora. The technical deficiency regarding the Guidance Notes highlighted in the report has also already been addressed in the Finance (Miscellaneous Provisions) Act 2018.
BOM will continue to collaborate with the Financial Intelligence Unit, the Financial Services Commission, the Mauritius Revenue Authority, and the Independent Commission Against Corruption, both at the national and international levels, to support measures to address the money laundering and terrorism financing risks in the financial sector.

Leave a Comment