Mauritius Signs MoU with AML/CFT Supervisor to Strengthen Compliance

Mauritius was for a long time a preferred destination for those interested in operating an offshore brokerage.

The Financial Services Commission (FSC) in Mauritius has signed a memorandum of understanding (MoU) with local AML/CFT supervisors to combat money laundering and the financing of terrorism.

The two bodies already collaborate, but this relationship will now be developed further, through a common framework for sharing information and experiences. The cooperation was also extended to cover AML training and assessing the competency of money laundering reporting officers as licensees.

The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation

In particular, the MoU highlights that the respective parties remind its regulated entities that they are required to report any suspicious or potentially ‎suspicious activity of the individuals or entities named in the Sanctions List set up by UNSC. ‎

The announcement is a fairly routine occurrence among financial regulators ‎worldwide to adhere to international initiatives to combat money laundering and ‎financing of terrorism. Furthermore, it often demands that the licensees regularly verify whether they ‎maintain an account or otherwise hold any fund, or other financial assets on behalf of blacklisted individuals, entities and specified groups.‎

Suggested articles

Introducing NextV - The Full Scope Solution To Building Your Next Virtual EventGo to article >>

A Preferred Destination Offshore Brokers

FSC Mauritius has previously revoked the licences of forex ‎broker FXPrimus after it found the broker in ‎breach of the ‎requirements of preventing money laundering and terrorist financing.‎

The Mauritian regulator has also experienced its share of unlicensed firms operating within its jurisdiction. As the financial world continues to adapt to the growing demand for cryptocurrencies, many institutions are making the necessary adjustments. The FSC is no exception, as the authority has already begun to monitor and assess crypto companies and their respective activity.

For a long time, Mauritius has been a preferred destination for those interested in operating an offshore brokerage due to the softer financial requirements, which makes it a better option than many European jurisdictions.‎

‎The benefits list includes limited setup costs, low capital requirements of about €20,000, and ‎a favorable tax regime. But, recently it has become increasingly difficult to apply for and obtain a forex licence in Mauritius, to the point that most providers have changed their destination to Belize. This is despite the higher capital requirements and the more expensive fee structure.

Got a news tip? Let Us Know