O𝐮𝐫 𝐀𝐌𝐋/𝐂𝐅𝐓 𝐞𝐟𝐟𝐞𝐜𝐭𝐢𝐯𝐞𝐧𝐞𝐬𝐬 !

Very incisive comments from Mr H.V. Jardine , US ambassador, in today’s l’express-“ The thoroughness of the ongoing investigations sends a positive message about the governance of the Mauritian financial sector.”

Yes, it is all the more important given that the Financial Action Task Force (FATF) will be assessing Mauritius in 2027, with information gathering beginning in 2026.

Mauritius must be seen to be taking strong action to clear the image and reputation of Mauritius on the offshore money laundering allegations made by Madagascar in relation to Ravatomanga -The use of offshore companies and cross-border financial transfers allegedly enabled the laundering of illicit gains generated by these practices.

Among the complex corporate structures implicated in concealing some financial flows, as revealed by FCC, are Durban International Traders Ltd, Essential Time Group Limited, Prime Trading & Investment Ltd, Malenga Trading Incorporation and Phi-dromes Trading & Investment Ltd; they are all suspected of being vehicles for laundering illicit profits generated by corruption and timber trafficking. Mamy Ravatomanga has also tried to influence FCC officers and infiltrate public institutions to protect his activities.

These facts led to his arrest on 24 October and provisional indictment for: money laundering (two counts) and conspiracy for traffic of influence.

You recall that FATF had recommended continued and further actions to address, among others, these two specific strategic deficiencies:

a. 𝙊𝙣 𝙩𝙝𝙚 𝙛𝙞𝙧𝙨𝙩 𝙎𝙩𝙧𝙖𝙩𝙚𝙜𝙞𝙘 𝘿𝙚𝙛𝙞𝙘𝙞𝙚𝙣𝙘𝙮- the lack of effective risk-based supervision- FATF considers the supervision of DNFBPs should improve, and Mauritius should demonstrate progress across DNFBPs supervisory authorities to conduct risk-based on-site inspections, along with staff training, and provide indicators that demonstrate that supervision and actions against non-compliance are being implemented effectively. Suspicious Transaction Reporting (STR), especially among higher risk sectors and DNFBPs, should be increased, and indicators for a sustained increase in the diversity of STR should be provided.

b. 𝙊𝙣 𝙩𝙝𝙚 𝙨𝙚𝙘𝙤𝙣𝙙 𝙎𝙩𝙧𝙖𝙩𝙚𝙜𝙞𝙘 𝙙𝙚𝙛𝙞𝙘𝙞𝙚𝙣𝙘𝙮-the lack of improvement in access to beneficial ownership information- FATF expects Mauritius to demonstrate that the relevant beneficial ownership information is accurate and up to date, through on-site visits and verification by the Registrar of Companies, and by reviews of deficiencies identified at monitoring. FATF also expects Mauritius to reinforce the application of proportionate and dissuasive sanctions, including by the FIU, which regulates most NFBPs.

We have put in place the right legislations but we had failed to make it really bite in terms of enforcement and immediate and effective responses to addressing financial crime. Mauritius’s weak point was not in the adequacy of its AML/CFT legislation, but in the lack of legal effectiveness.

With the new team on board at the Financial Services Commission (FSC), there is some hope on the strengthening of enforcement and that all of Ravatomanga’s financial dealings in Mauritius will be fully investigated and clarified .

Mauritius will be conveying a strong message to the FATF. 𝑾𝒆’𝒓𝒆 𝒏𝒐𝒕 𝒐𝒏𝒍𝒚 𝒆𝒏𝒔𝒖𝒓𝒊𝒏𝒈 𝒐𝒖𝒓 𝑨𝑴𝑳/𝑪𝑭𝑻 𝒍𝒆𝒈𝒊𝒔𝒍𝒂𝒕𝒊𝒐𝒏 𝒊𝒔 𝒂𝒅𝒆𝒒𝒖𝒂𝒕𝒆 𝒃𝒖𝒕 𝒂𝒍𝒔𝒐 𝒂𝒑𝒑𝒍𝒚𝒊𝒏𝒈 𝒊𝒕 𝒆𝒇𝒇𝒆𝒄𝒕𝒊𝒗𝒆𝒍𝒚 𝒊𝒏 𝒑𝒓𝒂𝒄𝒕𝒊𝒄𝒆. (legal effectiveness).