GS Paper - 2 (International Relations)

Mauritius has been taken off the grey list by the Financial Action Task Force (FATF), an inter-governmental body that sets anti-money laundering standards, while acknowledging the progress the island nation had made in its fight against money laundering and terrorist financing (AML/CFT) in the past few months.

What

  1. FATF has retained Pakistan in the grey list, saying the country had made good progress in tackling most of the action plans, but needs to further demonstrate that investigations are being pursued against senior leaders of terror groups and organised criminals are being prevented from profiteering.
  2. Mauritius was put on the list by FATF in February 2020 and that had a significant impact on its credibility as a prudent and compliant jurisdiction.
  3. This list is often referred to as the “grey list”. Jurisdictions under increased monitoring actively work with the FATF to address strategic deficiencies.
  4. Subsequently, the European Commission, the executive branch of the European Union, included Mauritius in its revised list of high-risk countries with strategic deficiencies in their AML/CFT frameworks.
  5. The inclusion in the grey list may have created a negative perception towards Mauritius globally.
  6. The exit will reinvigorate the global business sector and enhance the competitiveness and attractiveness of Mauritius as a domicile of choice for cross-border investments into Asia and Africa.
  7. It will now pave the way for the EU and the UK to take Mauritius off their list of high-risk countries.