COMMUNIQUÉ – Industry news
Dear Business Partners,
We wish to refer to a press release issued by the European Commission on the 7th of May 2020 under the subject “Commission steps up fight against money laundering and terrorist financing”, whereby 12 new countries, including Mauritius, have been proposed for listing under the EU’s list of high-risk third countries with strategic deficiencies in their national anti-money laundering (AML) and countering terrorist financing (CFT) regime.
Under the European Anti-Money Laundering Directive (AMLD), the EU Commission has a legal obligation to identify high-risk third countries with strategic deficiencies in their AML/CFT regime, based on which European Member States entities are obliged to apply enhanced customer due diligence measures with respect to business relationships or transactions involving such countries.
It is to be highlighted that the EU Commission has amended the said list in the form of a draft regulation (Commission Delegated Regulation EU XX/XX of 07.05.2020), which will be submitted to the European Parliament and Council for approval within one month (with a possible one-month extension). Should the Regulation be approved as proposed, the date of application of the new list, and such required enhanced due diligence measures, will be effective as of the 1st of October 2020.
The proposed listing of Mauritius by the EU Commission is based on the lists published by the FATF.
It is to be noted that since February 2020, Mauritius has been placed on the FATF’s list of Jurisdictions under increased monitoring, this measure accompanying the country’s commitment to resolve swiftly identified strategic deficiencies in its AML/CFT regime.
Indeed, since the publication of the FATF/ ESAAMLG’s Mutual Evaluation Report in 2018, Mauritius has been taking strong measures to address the deficiencies identified therein. In the latest Follow Up Report issued by the FATF/ ESAAMLG in September 2019, the country’s overall significant progress was acknowledged in the implementation of the various recommendations, with 35 out of 40 recommendations being rated as largely compliant to compliant.
We wish to reassure our Business Partners that the Government of Mauritius has, by way of a Communiqué issued on the 09th May 2020 reaffirmed its strong political commitment to fulfil the FATF action plan at the earliest so as to exit the FATF and EU lists.
The Mauritian Global Business industry, together with the banking sector and the private sector have, through their professional associations, mobilised themselves to provide the necessary support to the Government in achieving the above commitments.
We further wish to reassure our Business Partners that MITCO has been applying the highest standards in terms of AML/CFT procedures and measures, in line with international best practices.
We will keep you informed of the situation and the progress of Mauritius to exit the FATF and the EU lists.
Should you require additional information or clarification, please do not hesitate to contact your Relationship Manager at MITCO.
Yours faithfully
MITCO Group
12 May 2020