FATF status

Mauritius is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

European Commission list of countries with strategic deficiencies in their AML/CFT regimes

Mauritius was removed from the EU Commission list of high risk countries in March 2022.

Compliance with FATF Recommendations

The latest follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Mauritius was undertaken in 2022. According to that Evaluation, Mauritius was deemed Compliant for 26 and Largely Compliant for 14 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

Corruption in Mauritius, while relatively low compared to regional standards, remains a significant concern, particularly at high political levels, leading to public frustration. Recent high-profile cases, including the arrest of a former prime minister and ongoing investigations into various officials, highlight the challenges in combating corruption, despite existing laws and the establishment of the Independent Commission Against Corruption (ICAC). The newly passed Financial Crimes Commission Act aims to centralize efforts against financial crimes, but has faced criticism for potentially undermining democratic processes and increasing political influence over prosecutions.

Mauritius has developed a stable and competitive economy, achieving middle-income status in less than 50 years, with a real GDP growth averaging 4.7% from 1968 to 2017. Despite setbacks from the COVID-19 pandemic, the economy rebounded strongly, with an estimated GDP growth of 7% in 2023, driven by a vibrant tourism sector and strong performance in transport and financial services. The country has diversified its economy from sugarcane to a more varied structure, including manufacturing, services, and tourism, although it faces challenges such as structural issues in key sectors and disparities in the labor force.

Mauritius boasts a favorable investment climate characterized by a pro-trade and investment government policy, a well-regarded legal and regulatory framework, and low levels of corruption compared to regional standards. The Economic Development Board (EDB) serves as the primary agency for promoting investment, offering aftercare services and facilitating foreign direct investment through various schemes and incentives. Despite some recent political and economic corruption scandals, Mauritius remains an attractive destination for foreign investors, particularly due to its strategic location and established trade agreements.