Anti-Money Laundering

The Role of FSC Code on the Prevention of Money Laundering & Terrorist Financing

• Background and Scope
• Sanctions for non – compliance
• Core AML/ CFT principles

Money Laundering and Terrorist Financing

• What Is Money Laundering?
• Stages involved in Money Laundering
• Terrorist Financing

International AML/CFT Initiatives

Financial Action Task Force (FATF)

• Basel Committee on Banking Supervision
• The Wolfsberg Group
• International Organisation of Securities Commissions (IOSCO)
• International Association of Insurance Supervisors (IAIS)

EXTRA TERRITORIAL POWERS OF THE UNITED STATES

The Legal Framework in Mauritius

• •The Financial Intelligence and Anti Money Laundering Act 2002 “FIAML Act”
• The Prevention of Terrorism Act 2002 “POTA”
• The Convention for the Suppression of the Financing of Terrorism Act 2003
• The Financial Services Act 2007 “FS Act”
• Exchange of Information between the FSC and the FIU

Internal Controls and Money Laundering Reporting Officer

• Internal Controls
• Appointment Of The Money Laundering Reporting Officer (MLRO)
• Notification Of The Appointment Of The Money Laundering Reporting Officer
• Role Of The Money Laundering Reporting Officer

Customer Due Diligence

• Customer Due Diligence Measures – “CDD MEASURES”
• Identification and verification of applicants for business who are natural persons
• Identification and verification of applicants for business who are legal persons/arrangements Acquisition of a
• Business or Block of customers.
• Source Of Funds/Property And Source Of Wealth
• Appropriate Certification
• Eligible And Group Introducers
• Omnibus Accounts
• Timing Of Verification Of Identity
• Existing Customers

High Risk and Low Risk Relationships

•Risk Profiling
•High Risk Relationship
•Enhanced Due Diligence Measures
•Politically Exposed Persons (PEPs)
•Non face – to – face business relationships
•FATF Statements and non – equivalent jurisdictions
•Low Risk Relationships
•Simplified Or Reduced Due Diligence Measures

On Going Monitoring, Recognising and Reporting Suspicious Transaction / Activity

• On Going Monitoring •Complex Arrangements
• Recognising Suspicious Transaction And Activity
• Obligation And Failure To Repor
• Reporting Suspicions To The FIU Communicating With Customers And Tipping Off
• Constructive Trusts

Record Keeping 

• General Requirements
• Customer due diligence information
• Transactions
• Internal and external suspicious reports
• Training
• Compliance monitoring
• Forms Of Record And Record Retrieval
• Period Of Retention
• Inspection Of Records

FATF Recommendations Case Study.