🇲🇺 Mauritius – AML & Sanctions Compliance Guide 2025
Expert guide to navigating Mauritius's AML/CFT and sanctions compliance landscape. Essential reading for financial institutions, compliance officers, and regulatory professionals operating in Mauritius.
Mauritius Compliance Overview
📘 Mauritius Country Profile
Mauritius maintains a sophisticated financial sector with robust AML/CFT requirements. Key regulatory institutions include:
- Financial Services Commission (FSC) - Primary financial regulator and supervisor
- Financial Intelligence Unit (FIU) - National AML/CFT authority
- Bank of Mauritius (BoM) - Central bank and banking sector regulator
- Ministry of Financial Services and Good Governance - Policy oversight
⚖️ Mauritius Regulatory Framework
- Financial Intelligence and Anti-Money Laundering Act, 2002
- Prevention of Corruption Act, 2002
- Financial Services Act, 2007
- FSC AML/CFT Handbook
Key compliance requirements:
- Mandatory KYC/CDD procedures for all customers
- Enhanced due diligence for PEPs and high-risk clients
- 7-year minimum data retention period
- Mandatory STR filing for suspicious transactions
Compliance Requirements
🛡️ Sanctions Regime
Mauritius implements UN sanctions and maintains domestic sanctions lists.
- Regular screening against UN and local watchlists
- Immediate asset freeze requirements
- Reporting obligations to FIU
- Compliance with both regional and international sanctions regimes
🔍 Risk Environment
Typologies:
- Investment fraud and securities violations
- Trade-based money laundering
- Tax evasion and avoidance
- Politically exposed persons (PEPs)
- Offshore financial activities
High-risk sectors: Banking, investment funds, global business companies, real estate, trust and corporate service providers
Regulatory Details
📋 Reporting Requirements
Thresholds and Timelines:
- STR (Suspicious Transaction Report) filing: Within 3 working days of suspicion
- CTR (Currency Transaction Report): MUR 500,000 (approx. $11,000)
- PEP reporting: Mandatory for domestic and foreign PEPs
- Annual compliance reports: Due March 31st
Penalties:
- Non-compliance fines: Up to MUR 10,000,000
- License revocation for repeated violations
- Criminal liability for willful non-compliance
🔐 Data Protection & Privacy
- Data Protection Act, 2017 requirements
- Mandatory data localization for financial records
- 7-year retention period for customer records
- Secure storage requirements for sensitive data
- Breach notification within 72 hours
Implementation Guidance
🧩 Compliance Program
- Comprehensive KYC procedures
- Regular staff training programs
- Transaction monitoring systems
- PEP screening and enhanced due diligence
- Regular risk assessments
🧭 Supervisory Trends
- Increased focus on beneficial ownership transparency
- Enhanced scrutiny of cross-border transactions
- Stricter enforcement of KYC requirements
- Regular on-site inspections by FSC
Operational Considerations
📊 Risk Assessment Framework
Required Elements:
- Customer risk scoring methodology
- Product and service risk assessment
- Geographic risk factors
- Transaction pattern analysis
- Regular risk review cycles (minimum quarterly)
Documentation Requirements:
- Risk assessment methodology documentation
- Risk scoring criteria and thresholds
- Review and approval records
👥 Staff Training Requirements
Mandatory Training Topics:
- AML/CFT laws and regulations
- KYC and CDD procedures
- Sanctions screening
- Red flag indicators
- Reporting obligations
Training Frequency:
- New staff: Within 30 days of joining
- Annual refresher training
- Role-specific training for compliance staff
Technology & Systems
💻 System Requirements
Recommended Systems:
- Advanced transaction monitoring capabilities
- Automated sanctions screening tools
- Customer risk assessment templates
- Document management system
- Comprehensive reporting tools
Key Considerations:
- Systems should support local language requirements
- Ability to generate reports in required formats
- Comprehensive audit trail functionality
- Secure storage for customer documentation
- Compatibility with local reporting requirements
📝 Record Keeping
Documentation Requirements:
- Customer identification records
- Transaction records and supporting documents
- Risk assessment documentation
- Training records and certifications
- Internal audit reports
Retention Periods:
- Customer records: 7 years after relationship ends
- Transaction records: 7 years from date of transaction
- Training records: 5 years
- Audit reports: 7 years
Industry-Specific Requirements
🏦 Financial Sector
Banks & Financial Institutions:
- Enhanced due diligence for correspondent banking
- Special monitoring for high-risk transactions
- Strict wire transfer regulations
- Mandatory reporting of cross-border transactions
Investment Funds:
- Special focus on fund transactions
- Enhanced monitoring of large investments
- Specific requirements for fund beneficiaries
🏢 Other Regulated Sectors
Global Business Companies:
- Mandatory reporting of beneficial ownership
- Enhanced due diligence for complex structures
- Special attention to foreign investors
Trust & Corporate Service Providers:
- Strict monitoring of client activities
- Mandatory reporting of suspicious activities
- Enhanced due diligence for high-risk clients
Cross-Border Considerations
🌍 International Transactions
Key Requirements:
- Enhanced due diligence for cross-border wire transfers
- Mandatory reporting of international transactions above MUR 500,000
- Special attention to transactions with high-risk jurisdictions
- Documentation of foreign exchange transactions
- Compliance with both regional and international sanctions regimes
Correspondent Banking:
- Strict due diligence on foreign correspondent banks
- Regular review of correspondent banking relationships
- Monitoring of nested account activities
- Documentation of foreign bank certifications
🔄 Trade Finance
Documentation Requirements:
- Detailed trade documentation for all transactions
- Verification of shipping documents
- Commodity price verification
- Beneficiary verification
Risk Mitigation:
- Regular review of trade finance patterns
- Enhanced monitoring of high-value transactions
- Special attention to dual-use goods
- Documentation of trade finance controls
Compliance Challenges & Solutions
⚠️ Common Challenges
Operational Challenges:
- Complex corporate structures
- Cross-border transaction monitoring
- Beneficial ownership verification
- Regulatory reporting complexity
- Technological integration
Regulatory Challenges:
- Frequent regulatory updates
- International compliance requirements
- Complex reporting obligations
- Regulatory coordination across jurisdictions
✅ Practical Solutions
Operational Solutions:
- Implement robust KYC/CDD systems
- Develop comprehensive monitoring tools
- Create standardized documentation processes
- Invest in compliance technology
- Build specialized compliance expertise
Regulatory Solutions:
- Regular regulatory updates and training
- Proactive engagement with regulators
- Documentation of compliance decisions
- Implementation of automated reporting systems
Regulator Engagement
🤝 Best Practices
Communication Strategies:
- Regular meetings with regulatory contacts
- Proactive reporting of issues
- Clear documentation of compliance efforts
- Timely response to regulatory inquiries
- Maintenance of regulatory relationship logs
Examination Preparation:
- Maintain organized compliance documentation
- Conduct regular internal audits
- Prepare executive summaries of compliance programs
- Train staff on examination procedures
📋 Regulatory Reporting
Effective Reporting:
- Establish clear reporting timelines
- Implement quality control for reports
- Maintain reporting logs and acknowledgments
- Document any reporting delays or issues
Relationship Management:
- Designate primary regulatory contacts
- Maintain regulator contact database
- Document all regulatory communications
- Regular review of regulatory relationships
Mauritius Compliance Resources
💡 Mauritius Compliance Tips
Key Red Flags in Mauritius:
- Complex corporate structures without clear business purpose
- Unusual cross-border transactions
- Reluctance to provide beneficial ownership information
- Transactions involving high-risk jurisdictions
Mauritius-Specific Considerations:
- Understanding local business practices and cultural norms
- Managing international financial center compliance challenges
- Building strong relationships with Mauritian regulators
- Navigating language requirements (English, French)