Examining the Effects of the Recent AML/CFT Legislation in Mauritius
DOI:
https://doi.org/10.53748/jbms.v3i1.57Keywords:
Money Laundering, Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT), Financial Intelligence Unit, Eastern and Southern Africa Anti-Money Laundering Group, Prevention of Corruption Act, Prevention of Terrorism Act, Terrorism FinancingAbstract
This paper focuses on examining the implications of money laundering in Mauritius and providing recommendations to mitigate its negative effects. Another objective of this study is to assess the effectiveness of antimoney laundering (AML) efforts by financial institutions in Mauritius, which was accomplished through the analysis of both primary and secondary data. The research targets professionals in the compliance and in the AML field within the financial sector of Mauritius. Through qualitative interviews of AML professionals and a quantitative survey of 209 respondents, the study reveals a positive relationship between variables related to money laundering. The findings indicate that 86% of the respondents consider the initiatives taken by the Mauritian government to combat money laundering on the island as ineffective. Based on primary data obtained from participants in Mauritius’ financial institutions, there is disagreement regarding the efficacy of the country’s AML legislation in combating money laundering. Furthermore, secondary statistics reveal that the introduction of the AML rules and regulations in 2018, as well as the establishment of the Financial Intelligence Unit (FIU), were responses to a significant increase in suspicious transactions in Mauritius between 2003 and 2014. The study contributes to existing knowledge and highlights the importance of proactive measures to combat money laundering in Mauritius.
Downloads
References
Albrecht, J., Scherrer, M., Stöcker, C., & Zech, S. (2019). The criminology of money laundering: Policy responses and new directions for research. In J. Albrecht, C. Stöcker, M. Scherrer, & S. Zech (Eds.), The Criminology of White-Collar Crime (pp. 271-286). Springer.
Arnone, M., & Borlini, L. (2010). The anti-money laundering regime: A comparative analysis and critique of the legal and ethical frameworks for the prevention of money laundering. Journal of Money Laundering Control, 13(1), 5-33.
Azevedo Araujo, E. (2020). Money laundering through insurance companies: The case of ghost policies. Journal of Money Laundering Control, 23(1), 65-78.
Balani, S. (2019). Money laundering and its impact on the reputation of a country. In J. A. Wise (Ed.), Handbook of Money Laundering (pp. 275-286). Wiley.
Balani, A., Handfield-Jones, H., & Nicholls, S. (2019). Effectiveness of cross-border protection in countering money laundering: Evidence from the international AML/CFT regime. Crime, Law and Social Change, 71(3), 257-276.
Bunwaree, S. (2014). 4 European Union External Affairs, Neighbourhood Policy, Enlargement, and European Economic Area. In Contemporary EU Policy Making: The EU as a Global Player (pp. 64-79). Routledge.
Cassella, S. (2018). Money laundering: A new international law enforcement model. CRC Press.
De Koker, L. (2006). The suppression of the financing of terrorism: A critical analysis of international instruments. Cambridge University Press.
Dreżewski, R., Kwiatkowski, R., & Kwiatkowski, K. (2012). The impact of money laundering on economic development: Theoretical and empirical issues. Journal of Money Laundering Control, 15(2), 154-166.
Ferwerda, J. (2013a). The influence of secrecy on money laundering prosecutions. Crime, Law and Social Change, 60(4), 401-422.
Ferwerda, J. (2013b). The economics of crime, corruption and illegal markets. The Economic Journal, 123(567), F293-F341.
Financial Action Task Force (2020). Mutual Evaluation Report: Mauritius. Retrieved from https://www.fatf-gafi.org/media/fatf/documents/reports/mer4/MER-Mauritius-2020.pdf
Financial Services Commission (FSC). (n.d.). AML/CFT Supervisory Framework. Retrieved from https://www.fscmauritius.org/en/amlcft/amlcft-supervisory-framework/
Financial Action Task Force (FATF). (n.d.). Understanding money laundering and terrorist financing risks in the virtual asset sector. Retrieved from https://www.fatf-gafi.org/media/fatf/documents/reports/VASPs-Risk-Assessment.pdf
Gilmour, A. (2016). Money laundering in the real estate sector: Suspicious transactions within the EU. In A. Unger, G. Boersma, & D. Siegel (Eds.), The Handbook of Global Crime and Criminal Justice (pp. 581-595). Wiley.
Hendriyetty, N., & Grewal, J. (2017). The impacts of secrecy jurisdictions on the global financial system and its regulation. Journal of Financial Regulation and Compliance, 25(4), 454-470.
Huang, X. (2015). Compliance measures for preventing money laundering: A comparative study of the People’s Republic of China and the United States of America. Journal of Money Laundering Control, 18(4), 397-416.
Hülsse, R., & Kerwer, D. (2007). The implementation of EU anti-money laundering policies in Germany: National dynamics and international constraints. Journal of Money Laundering Control, 10(4), 424-444.
Jaunky, V., Ramkalawan, S., & Balachandran, K. R. (2017). The Republic of Mauritius: A premier international financial centre in the making. In K. R. Balachandran & V. Jaunky (Eds.), The Routledge companion to banking regulation and reform (pp. 287-303). Routledge.
Kemal, M. U. (2014). The analysis of money laundering and its effects on the economy. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(2), 71-78.
Kumar, R. (2018). Research Methodology: A Step-by-Step Guide for Beginners. SAGE Publications.
Levi, M., Reuter, P., & Halliday, T. (2017). The geography of illicit flows. In The Palgrave Handbook of Criminal and Terrorism Financing Law (pp. 167-186). Palgrave Macmillan.
Levi, M., Reuter, P., & Halliday, T. (2017). The worldwide spread of the war on money laundering. Journal of Money Laundering Control, 20(4), 427-446.
Mahadew, G. (2017). The Prevention of Corruption Act 2002 and its Amendments: A Critical Analysis. Mauritius Research Journal, 23, 1-26.
Manjunath, P. V. (2015). Money laundering and tax evasion: A review. Journal of Money Laundering Control, 18(4), 414-427.
Masciandaro, D., & Filotto, U. (2001). Anti-money laundering: What works? Journal of Financial Crime, 8(2), 118-126.
McCarthy, J. F., Peltier, R. C., & Cullen, T. C. (2015). Money laundering: Implications and relevance for political stability. Journal of Money Laundering Control, 18(1), 89-105.
Naheem, M. A. (2016). Anti-money laundering regime in Pakistan: An appraisal. Journal of Money Laundering Control, 19(1), 35-55.
Naheem, M. A. (2017). Financial action task force on money laundering: A case study of Pakistan. Journal of Financial Crime, 24(1), 66-81.
Naheem, M. A. (2018a). Global money laundering: Issues and challenges. In M. A. Naheem (Ed.), Global Money Laundering and Terrorist Financing (pp. 1-22). Palgrave Macmillan.
Naheem, M. A. (2018b). Anti-money laundering laws and their effects on banks’ performance: Evidence from industrialised countries. Journal of Money Laundering Control, 21(4), 410-425.
Naheem, M. A. (2019a). Money laundering techniques: A literature review. Journal of Money Laundering Control, 22(3), 362-382.
Naheem, M. A. (2019b). Money laundering through the banking system. Journal of Money Laundering Control, 22(2), 240-257.
Organization for Economic Cooperation and Development (OECD). (2000). Harmful tax competition: An emerging global issue. Retrieved from https://www.oecd.org/tax/harmful/2440804.pdf
Teichmann, M. (2017). The offshore interbank market: Insights from new micro-data. Review of Financial Studies, 30(7), 2342-2388.
Teichmann, F. (2020). Money laundering: An overview. In J. A. Wise (Ed.), Handbook of Money Maundering (pp. 1-13). Wiley.
Tsingou, E. (2014). Global money laundering: A network approach to law enforcement cooperation. Global Policy, 5(3), 313-321.
Uppiah, S. (2018a). Anti-Money Laundering and Financial Intelligence Act. Mauritius: LawAfrica Publishing Ltd.
Uppiah, M. (2018b). The Offences of Money Laundering and the Financing of Terrorism: A Mauritian Perspective. Journal of Money Laundering Control, 21(4), 543-558.
Vaithilingam, S., & Nair, M. (2007). Effectiveness of anti-money laundering and combating financing of terrorism measures in Malaysia. Journal of Financial Crime, 14(3), 325-339.
Vaithilingam, S., & Nair, M. (2017). The Money Laundering Issue in Malaysia: The Press’ Agenda. In Dynamics of Media and Society: Critical Perspectives (pp. 267-278). Springer.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Journal of Business, Management, and Social Studies
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution 4.0 (CC 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
