High Risk Countries

Section 17H(1) of the Financial Intelligence and Anti-Money Laundering Act (FIAML Act) stipulates that where a jurisdiction is identified by the Financial Action Task Force (FATF) as having significant or strategic deficiencies in its AML/CFT measures, the Minister to whom responsibility for the subject of anti-money laundering and combatting the financing of terrorism and proliferation is assigned (Minister) may, on the recommendation of the National Committee for Anti-Money Laundering and Combating the Financing of Terrorism (National Committee), identify that jurisdiction as a high risk country.

In this respect, in light of the jurisdictions identified by FATF as ‘High-Risk Jurisdictions subject to a call for action’ on 21 October 2022, and on the recommendation of the National Committee, the Minister had identified[1] the Democratic People's Republic of Korea (DPRK), Iran and Myanmar as high risk countries.  

The Minister has, on the recommendation of the National Committee, again identified[2] the above three countries as high risk countries.  

Reporting persons are required, under section 17H(2) of the FIAML Act, to apply such enhanced due diligence measures which are prescribed in the Financial Intelligence and Anti-Money Laundering Regulations 2018 (FIAML Regulations) with respect to business relationships or transactions involving those high risk countries. In addition, reporting persons should, where applicable and proportionate to the risks, apply one or more of the following additional mitigating measures to persons and legal entities carrying out transactions involving those high risk countries:

1. the application of additional elements of enhanced due diligence;

2. the introduction of enhanced relevant reporting mechanisms or systematic reporting of financial transactions; and

3. the limitation of business relationships or transactions with natural persons or legal entities from those high risk countries.

Reporting persons should further –

1. consult the FATF public documents which are published on the website of the FATF (https://www.fatf-gafi.org/) at least 3 times a year, namely in February, June and October, and apply the countermeasures recommended by the FATF in those documents;

2. give special attention to business relationships and transactions with persons (both natural and legal persons) in those high risk countries, including companies, legal arrangements/trusts and financial institutions based in those countries;

3. strengthen systems and controls in managing their exposure to the vulnerabilities identified by FATF; and

4. ensure that correspondent relationships, in particular, are not being used to evade countermeasures and risk mitigation practices.

Any non-compliance with the directions and specifications contained in the General Notice is a criminal offence under the FIAML Act and may further attract administrative sanctions and penalties imposed by the Bank of Mauritius under the FIAML Act.

Licensees of the Bank of Mauritius have been instructed to strictly comply with the above directions and specifications at all times, and ensure that appropriate procedures and processes are implemented in their institutions to adhere thereto as well as with the requirements set out in the FIAML Act and the FIAML Regulations.

The Bank of Mauritius will, in case of non-compliance with the above instructions, impose administrative sanctions and penalties as set out in section 18 of the FIAML Act, on its licensees.