FATF team kicks off on-site inspections

Officers of the Financial Action Task Force (FATF) begin on-site inspections today. Eight members of the FATF reportedly arrived in Mauritius last night and were due to first meet PM Pravind Jugnauth.

The FATF inspectors will have a series of meetings and workshops with the main players of the financial sector including banks and global business companies to review reforms made as per FATF’s recommendations.

In May 2020, the European Commission (EC) identified Mauritius as a high-risk third country with deficiencies in its Anti Money- Laundering and Counter Financing Terrorism (AML/CFT) regime.

The classification by the EC was made after the FATF classified Mauritius in February 2020 under its ‘grey list’ as a jurisdiction with strategic deficiencies. The inclusion of Mauritius on the EU blacklist of High-Risk Third Countries became applicable on 1 October 2020.

Pursuant to its second Plenary for 2021 held from 21 to 25 June 2021, the FATF made the initial determination that Mauritius has substantially completed its action plan and warrants an on-site assessment to verify that the implementation of Mauritius AML/CFT reforms were carried out.

If FATF inspectors are satisfied, Mauritius could be removed from the grey list of the FATF and EU’s blacklist in October.