Mauritius FSC Issues Anti-Money Laundering Codes

Tax-News.com, Cyprus

22 April 2003

The Mauritius Financial Services Commission (FSC) which is the regulatory authority for all non-bank financial services has issued three Codes on the prevention of money laundering and terrorist financing, namely:

• Code on the Prevention of Money Laundering and Terrorist Financing intended for Management Companies;
• Code on the Prevention of Money Laundering and Terrorist Financing intended for Investment Businesses; and
• Code on the Prevention of Money Laundering and Terrorist Financing intended for Insurance Entities.

Says the FSC:

'These Codes aim to preserve high standards of practice and the integrity of Mauritius as a reputable financial services center. Mauritius is fully supportive of international initiatives to combat money laundering and terrorist financing and so the Codes take account of international standards.

'These Codes state minima criteria to be followed by companies and market intermediaries to prevent the exploitation of the financial services industry in Mauritius by money launderers and terrorist financiers.

'Economies with emerging financial centers and inadequate controls are particularly vulnerable. Money laundering poses a serious threat to the integrity and soundness of the financial system of all countries. It affects economic development, and foreign investors' perception that the financial services industry functions within a framework of high legal, professional and ethical standards.

'It is therefore vital that all operators in the financial industry in Mauritius avoid exposure to the risk of involvement in relationships concerning money laundering or terrorist financing.

'The Codes issued by FSC describe the regulatory anti money laundering practices that operators involved in these three disciplines are expected to consistently follow and include:

• The "Know Your Customer" procedures;
• The obligation for operators to check the identity of clients;
• The need to retain records; and above all
• The need to comply with the legal provisions of the Financial Intelligence and Anti Money Laundering Act 2002, particularly as regards Suspicious Transaction Reporting.

'The Codes will come into force on 2nd May 2003.'

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