COMMITMENT OF MAURITIUS IN THE COMBAT AGAINST MONEY LAUNDERING AND THE FINANCING OF TERRORISM AND PROLIFERATION
Mauritius has, through numerous initiatives, demonstrated its unflinching commitment to combat money laundering and the financing of terrorism and proliferation. To this effect, Mauritius has ratified and acceded to numerous international conventions, protocols, and treaties to express its commitment towards the international community to combat this scourge, amongst others, the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, commonly known as the Vienna Convention and the United Nations (UN) Convention against Transnational Organised Crime, also known as the Palermo Convention.
Mauritius has further committed itself to the International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation issued, in February 2012, by the Financial Action Task Force [1] (the FATF Recommendations)[2] and to its Mutual Evaluation procedure.
Mauritius, being a founder member of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG)[3], which is an associate member of the FATF, participates in a self-assessment process to assess its progress in implementing the FATF Recommendations.
Mauritius underwent a second round of mutual evaluation of its Anti-Money Laundering and Combating - the Financing of Terrorism and Countering Proliferation Financing (AML/CFT/CPF) framework under the Methodology for assessing technical compliance with the FATF Recommendations and the effectiveness of AML/CFT/CPF systems.
On 21 September 2018, the ESAAMLG published the Mutual Evaluation Report[4] (2018 MER) on its assessment of Mauritius’s level of technical compliance with the FATF Recommendations and the level of effectiveness of its AML/CFT systems.
Mauritius brought numerous amendments to its AML/CFT/CPF framework and a new set of Regulations, namely the Financial Intelligence and Anti Money Laundering Regulations 2018, was promulgated effective as from 01 October 2018, to address the FATF requirements regarding Customer Due Diligence, Politically Exposed Persons, Correspondent Banking, Money or Value Transfer Services, New Technologies, Wire Transfers, Reliance on Third Parties, Internal Control, and Foreign Branches and Subsidiaries, amongst others.
The United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019 (Sanctions Act) was also enacted to enable the Government of Mauritius to implement targeted sanctions, including financial prohibitions, arms embargo and travel ban, and other measures imposed by the United Nations Security Council (UNSC) under Chapter VII of the Charter of the UN, with a view to addressing threats to international peace and security, including terrorism, the financing of terrorism and proliferation of weapons of mass destruction. The Sanctions Act also implements the FATF Recommendations regarding targeted financial sanctions. To this effect, the National Sanctions Secretariat which is the focal point for UN sanctions related matters, including targeted financial sanctions related to proliferation financing, and which supports the work of the National Sanctions Committee, issued the Guidelines on the Implementation of Targeted Financial Sanctions under the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019.
On the strength of the legislative amendments brought to the AML/CFT/CPF framework and an effective implementation thereof, Mauritius submitted 5 follow up reports as well as made 5 applications for technical compliance re-rating to the ESAAMLG, which were considered at its April 2019, September 2019, December 2020, September 2021 and August 2022 meetings. The Enhanced Follow-up Report & Technical Compliance Re-Rating reports issued by the ESAAMLG and which set out the progress made by Mauritius in strengthening AML/CFT measures since the 2018 assessment are as follows:
1st Enhanced Follow-up Report & Technical Compliance Re-Rating (April 2019);
2nd Enhanced Follow-up Report & Technical Compliance Re-Rating (September 2019);
3rd Enhanced Follow-up Report & Technical Compliance Re-Rating (December 2020);
4th Enhanced Follow-up Report & Technical Compliance Re-Rating September 2021; and
5th Enhanced Follow-up Report & Technical Compliance Re-Rating September 2022.
Mauritius is now Compliant on 26 of the 40 Recommendations and Largely Compliant on 14 of them. It has addressed or largely addressed all its deficiencies against the 40 Recommendations
The consolidated technical compliance ratings may be summarised as follows:
|
Recommendation |
Consolidated rating following the technical compliance re-ratings |
|
|
R.1 |
Assessing Risks and applying a Risk-Based Approach |
C |
|
R.2 |
National Cooperation and Coordination |
C |
|
R.3 |
Money laundering offence |
C |
|
R.4 |
Confiscation and provisional measures |
C |
|
R.5 |
Terrorist financing offence |
C |
|
R.6 |
Targeted financial sanctions related to terrorism and terrorist financing |
C |
|
R.7 |
Targeted financial sanctions related to proliferation |
C |
|
R.8 |
Non-profit organisations |
LC |
|
R.9 |
Financial institution secrecy laws |
C |
|
R.10 |
Customer due diligence |
C |
|
R.11 |
Record-keeping |
LC |
|
R.12 |
Politically exposed persons |
C |
|
R.13 |
Correspondent banking |
C |
|
R.14 |
Money or value transfer services |
C |
|
R.15 |
New technologies |
LC |
|
R.16 |
Wire transfers |
C |
|
R.17 |
Reliance on third parties |
C |
|
R.18 |
Internal controls and foreign branches and subsidiaries |
C |
|
R.19 |
Higher-risk countries |
C |
|
R.20 |
Reporting of suspicious transaction |
C |
|
R.21 |
Tipping-off and confidentiality |
C |
|
R.22 |
DNFBPs: Customer due diligence |
C |
|
R.23 |
DNFBPs: Other measures |
C |
|
R.24 |
Transparency and beneficial ownership of legal persons |
LC |
|
R.25 |
Transparency and beneficial ownership of legal arrangements |
LC |
|
R.26 |
Regulation and supervision of financial institutions |
LC |
|
R.27 |
Powers of supervisors |
C |
|
R.28 |
Regulation and supervision of DNFBPs |
LC |
|
R.29 |
Financial intelligence units |
C |
|
R.30 |
Responsibilities of law enforcement and investigative authorities |
C |
|
R.31 |
Powers of law enforcement and investigative authorities |
C |
|
R.32 |
Cash Couriers |
LC |
|
R.33 |
Statistics |
C |
|
R.34 |
Guidance and feedback |
LC |
|
R.35 |
Sanctions |
C |
|
R.36 |
International instruments |
LC |
|
R.37 |
Mutual legal assistance |
LC |
|
R.38 |
Mutual legal assistance : freezing and confiscation |
LC |
|
R.39 |
Extradition |
LC |
|
R.40 |
Other forms of international cooperation |
LC |
Note: Four technical compliance ratings are available: compliant (C), largely compliant (LC), partially compliant (PC), and non-compliant
For its assessment of effectiveness, the FATF has adopted an approach focusing on a hierarchy of defined outcomes as illustrated below. Effectiveness is assessed primarily on the basis of eleven Immediate Outcomes (IOs), each representing one of the key goals which an effective AML/CFT/CPF system should achieve, and they feed into three Intermediate Outcomes which represent the major thematic goals of AML/CFT/CPF measures.
With a view to enhancing the effectiveness of the AML/CFT/CPF measures, several working groups have been constituted at national level to work on enhancing Mauritius’ effectiveness to the 11 IOs of the FATF.
|
High-Level Objective: Financial systems and the broader economy are protected from the threats of money laundering and the financing of terrorism and proliferation, thereby strengthening financial sector integrity and contributing to safety and security. |
|
|
Intermediate Outcomes: |
Immediate Outcomes: |
|
Policy, co-ordination and co-operation mitigate the money laundering and financing of terrorism risks. |
|
|
Proceeds of crime and funds in support of terrorism are prevented from entering the financial and other sectors or are detected and reported by these sectors. |
|
|
Money laundering threats are detected and disrupted and criminals are sanctioned and deprived of illicit proceeds. Terrorist financing threats are detected and disrupted, terrorists are deprived of resources and those who finance terrorism are sanctioned, thereby contributing to the prevention of terrorist acts. |
|
Source – FATF Methodology for Assessing Technical Compliance with the FATF Recommendations and the Effectiveness of AML/CFT/CPF Systems (Adopted in February 2022 and updated in December 2025)
* VASP refers to Virtual Asset Service Provider
+ DNFBP refers to Designated Non-Financial Businesses and Professions
~ UNSCR refers to United Nations Security Council Resolutions
FIRST NATIONAL MONEY LAUNDERING AND TERRORISM FINANCING RISK ASSESSMENT
A key element of the FATF’s revised 2012 Recommendations is the application of a risk-based approach.
Recommendation 1 of the FATF Recommendations calls upon countries to identify, assess and understand their money laundering and terrorist financing risks and take action, including designating an authority or mechanism to coordinate actions to assess risks, and apply resources aimed at ensuring the risks are mitigated effectively.
In compliance with the first Recommendation of the FATF, Mauritius issued its first National Money Laundering and Terrorism Financing Risk Assessment (first NRA) Report on 29 August 2019.
The first NRA exercise was launched in January 2017 with the aim to identify, understand and assess the money laundering and terrorist financing risks faced by Mauritius. The first NRA paved the way to the implementation of a risk-based approach to combating money laundering and terrorism financing activities, thus making relevant stakeholders more effective in their efforts. The first NRA results provides valuable guidance to articulate policies and strategies to address the risks identified and to allocate our resources to areas that have the greatest impact in the fight against financial crime.
The first NRA exercise for Mauritius was carried out using the National Money Laundering and Terrorism Financing Risk Assessment Tool developed and provided by the World Bank.
The main objective of the assessment was to devise an effective risk-based AML/CFT regime through an efficient allocation of resources and the adoption of measures which will prevent or mitigate ML and TF on the basis of identified risks. For that purpose, the following factors were assessed:
- the scale and characteristics of the proceeds of criminal activities from both internal and external sources;
- the scale and characteristics of TF in Mauritius;
- the weaknesses or gaps in Mauritius’s ability to combat ML and TF; and
- the ML weaknesses or gaps arising from the financial services sector as well as DNFBPs in the country.
SECOND NATIONAL MONEY LAUNDERING AND TERRORISM FINANCING RISK ASSESSMENT
Mauritius unveiled its second National Money Laundering and Terrorism Financing Risk Assessment Report on 7 May 2025 (second NRA). The second NRA exercise for Mauritius was launched with the primary objectives to deepen the national understanding of ML and TF risks, evaluate their evolution since 2019 and support the development of targeted AML/CFT strategies and measures. The second exercise has also as aim to assist supervisors in conducting comprehensive risk evaluations and guide reporting persons in identifying and mitigating vulnerabilities.
The second NRA for Mauritius covers the period from January 2018 to December 2024, by providing a detailed snapshot of ML/TF activity, at national and sectoral levels for the period January 2018 to June 2022 and major developments including an updated assessment of emerging threats for the period July 2022 to December 2024.
The second NRA used the revised National Money Laundering and Terrorist Financing Risk Assessment Tool developed and provided by the World Bank, which included revised modules on National TF threat and vulnerability, along with a new module on TF sectoral risk.
In accordance with the above World Bank Tool, the following factors were assessed:
- the scale and characteristics of the proceeds of criminal activities from both internal and external sources;
- the scale and characteristics of TF in Mauritius;
- the weaknesses or gaps in the ability of Mauritius to combat ML and TF; and
- the ML and TF weaknesses or gaps arising from the financial services sector as well as Designated Non-Financial Businesses and Professions (DNFBPs) in the country.
The Key Findings of the Second NRA Public Report are as follows –
- The overall ML risk for Mauritius was Medium-High, based on both the National ML Threat and National ML Vulnerability, each assessed as Medium-High.
- The overall TF risk for Mauritius was Medium-Low, based on both the National TF Threat and National TF Vulnerability, each rated as Medium-Low.
A detailed analysis for ML and TF risks for each sector is set out in the second NRA Report.
A presentation on the detailed findings of the second NRA for Mauritius is available here.
RISK ASSESSMENT OF NON-PROFIT ORGANISATIONS
FATF IO 10 assesses the effectiveness of terrorist financing preventive measures and financial sanctions, and in particular, focuses on how terrorists, terrorist organisations and terrorist financiers are prevented from raising, moving, and using funds and from abusing the Non-Profit Organisation (NPO) sector. One of the characteristics of an effective system is that the country has a good understanding of the terrorist financing risks and takes appropriate and proportionate actions to mitigate those risks, including measures that prevent the raising and moving of funds through entities or methods which are at greatest risk of being misused by terrorists. Ultimately, this reduces terrorist financing flows, which would prevent terrorist acts.
FATF Recommendation 8 on NPOs requires countries to implement a risk-based approach to the supervision of NPOs. The FATF expects countries to:
(a) without prejudice to the requirements of Recommendation 1, since not all NPOs are inherently high risk (and some may represent little or no risk at all), identify which subset of organisations fall within the FATF definition of NPO*, and use all relevant sources of information, in order to identify the features and types of NPOs which by virtue of their activities or characteristics, are likely to be at risk of terrorist financing abuse;
*For the purposes of this Recommendation, NPO refers to a legal person or arrangement or organisation that primarily engages in raising or disbursing funds for purposes such as charitable, religious, cultural, educational, social or fraternal purposes, or for the carrying out of other types of “good works”
(b) identify the nature of threats posed by terrorist entities to the NPOs which are at risk as well as how terrorist actors abuse those NPOs;
(c) review the adequacy of measures, including laws and regulations, that relate to the subset of the NPO sector that may be abused for terrorism financing support in order to be able to take proportionate and effective actions to address the risks identified; and
(d) periodically reassess the sector by reviewing new information on the sector’s potential vulnerabilities to terrorist activities to ensure effective implementation of measures.
In line with the requirements of the FATF, Mauritius undertook its first terrorist financing risk assessment of the NPO Sector in 2020, which was commissioned by the Government of Mauritius as part of its commitment as a member of the FATF Global Network to combat the financing of terrorism. The NPO risk assessment exercise was completed with the support from the EU-funded Global AML/CFT Facility Consultants who developed the methodology for the assessment and provided technical support.
The Executive Summary of the Terrorist Financing Risk Assessment for NPO Sector in Mauritius showed that the overall inherent risk of terrorist financing abuse of NPOs in Mauritius was assessed as Low-Medium.
Mauritius conducted its second terrorist financing risk assessment of the NPO Sector, and the public report was published in February 2026. This updated assessment forms part of the country’s ongoing efforts to strengthen its understanding of terrorist financing risks within the NPO Sector.
As per the updated report, the risk of terrorist financing abuse of NPOs in Mauritius is assessed as Low.
MAURITIUS MONEY LAUNDERING/TERRORIST FINANCING RISK ASSESSMENT OF VIRTUAL ASSETS AND VIRTUAL ASSET SERVICE PROVIDERS
Recommendation 15 of the FATF requires countries and financial institutions to, amongst others, identify and assess money laundering and terrorist financing risks that may arise from the use of new developing technologies, Virtual Assets (VAs) activities and the activities or operations of Virtual Asset Service Providers (VA/VASPs). The Mauritius Money Laundering/Terrorist Financing Risk Assessment of Virtual Assets and Virtual Asset Service Providers (VAs/VASPs Risk Assessment) stems from these obligations.
The VAs/VASPs Risk Assessment has provided the basis for implementing a risk-based approach to ensure that the preventive and mitigating measures are commensurate with the ML/TF risks identified. It also laid the foundation for the enactment of the Virtual Asset and Initial Token Offering Services Act in December 2021 (VAITOS Act). The VAITOS Act was promulgated in February 2022.
The VAs/VASPs Risk Assessment led to the development of an action plan to be implemented in phases and which incorporates high and medium priority measures, and quick wins, spanning VA/VASP-related strategic, regulatory, operational, and supervisory measures to holistically mitigate ML/TF risks in the country.
A second ML/TF risk assessment of the VA/VASPs will be conducted during 2026.
NATIONAL STRATEGY FOR COMBATING MONEY LAUNDERING AND THE FINANCING OF TERRORISM AND PROLIFERATION 2019-2022
The National Strategy for Combating Money Laundering and the Financing of Terrorism and Proliferation 2019 – 2022 (National AML/CFT Strategy) sets out the approach which Mauritius will adopt to tackle money laundering , terrorist financing and proliferation financing threats over the next three years. In addition, it describes the priorities and objectives in addressing financial crime and assists Mauritius in meeting international obligations set by the FATF.
The National AML/CFT Strategy is based on the gaps identified in the AML/CFT Mutual Evaluation Report (MER) of Mauritius, which was published in September 2018 and the findings of the first National Risk Assessment of Mauritius , which was published in August 2019.
The National AML/CFT Strategy comprises eight core themes that enhances the ability of Mauritius to prevent, detect and deter money laundering and the financing of terrorism and proliferation. It also contains a strategy for maintaining an ongoing dialogue with relevant private sector stakeholders to ensure effective implementation of AML/CFT requirements and for countering the financing of terrorism.
NATIONAL STRATEGY FOR COMBATTING MONEY LAUNDERING AND COUNTERING THE FINANCING OF TERRORISM 2026- 2029
The National Strategy for Combatting Money Laundering and Countering the Financing of Terrorism 2026-2029 was approved in March 2026.
The purpose of the National Strategy is to articulate Mauritius’ policies, regulatory and operational priorities and response. It builds on the foundation of the National Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Strategy 2019-2022 and takes into consideration identified emerging risks in the global financial landscape. It reflects the findings of the second NRA and outlines specific actions to enhance the country’s effectiveness in mitigating risks and establishes a framework to address the most critical financial crime threats facing Mauritius’ financial system. The strategy is intended to guide relevant stakeholders in the development and implementation of their own AML and CFT strategies, policies and mitigating controls aligned with national risk priorities.
The 2026-2029 National Strategy, which encompasses core strategic themes for combatting money laundering and countering the financing of terrorism, aims to achieve the following objectives:
1. Strengthen the Legal & Regulatory Framework
2. Strengthen the Risk-Based Supervisory Framework
3. Enhance Detection, Investigation & Prosecution
4. Improve National Coordination & Cooperation
5. Build Capacity, Training & Awareness
6. Enhance Transparency of Legal Persons & Legal Arrangements
7. Develop an Effective AML/CFT Data Collection System
8. Strengthen Regional & International Cooperation
The National Strategy encompasses 10 core strategic themes for combatting money laundering and 10 core strategic themes for countering the financing of terrorism, which collectively enhance the ability of Mauritius to sustainably prevent, detect and deter ML and TF activities effectively.
Each strategic theme is supported by specific objectives, which are broken down into actionable steps to achieve those objectives. The core strategic themes are presented below, while the corresponding objectives and actions are detailed in this document.
These measures collectively enhance the ability of Mauritius to sustainably prevent, detect and deter ML and TF activities effectively.
The 10 Core Strategic Themes for Combatting Money Laundering are set out below.
The 10 Core Strategic Themes for Countering the Financing of Terrorism are set out below.
---------
[1] The FATF is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions. The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory, and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
[2] The FATF has developed a series of Recommendations that are recognised as the international standard for combating of money laundering and the financing of terrorism and proliferation of weapons of mass destruction. They form the basis for a coordinated response to these threats to the integrity of the financial system and help ensure a level playing field. They are intended to be of universal application.
[3] The ESAAMLG, which comprises 18 countries in the eastern and southern African region, is a Regional Body subscribing to global standards to combat money laundering and financing of terrorism and proliferation. Its main are to (a) adopt and implement the 40 Recommendations of the FATF; (b) apply anti-money laundering measures to all serious crime; (c) implement measures to combat the financing of terrorism and (d) implement any other measures contained in the multilateral agreements and initiatives relevant to prevention and control of laundering of proceeds of all serious crimes and the financing of terrorism and proliferation of weapons of mass destruction.
[4] A mutual evaluation report provides an in-depth description and analysis of a country’s system for preventing criminal abuse of the financial system as well as focused recommendations to the country to further strengthen its system.
| Available as : |  | | | | | | | | | | | | | | | | |