ASK MAT [Mauritius] Client Convicted of Terrorist Financing in the UK: What Risks for My Mauritian Bank?

ASK MAT [Mauritius] Client Convicted of Terrorist Financing in the UK: What Risks for My Mauritian Bank?

MAT SAYS:

• Thank you for such a great question.
• This is a topic (along with proliferation financing and money laundering) I spend a lot of time discussing with Mauritian banks and other reporting persons as a consultant and trainer.
• Here is the clear, practical answer.

MAY SAYS

• Yes, there is real legal exposure for your bank
• Even if the client’s terrorist financing (TF) activity occurred entirely in the UK and was prosecuted only there.
• The risks are both criminal and regulatory:
  • Money laundering (ML) under FCCA s.36 and/or
  • Failure to file a Suspicious Transaction Report (STR).
  • Itself IS a standalone criminal offence in Mauritius (unlike proliferation financing).
  • Heavy fines, licence suspension or revocation by the Bank of Mauritius or FSC for inadequate TF controls.
• Criminal risks:
• Terrorist Financing (TF)
• Regulatory risks:

Key Legal Framework

• Prevention of Terrorism Act 2002 (POTA) →
• Contains the standalone TF offence (Section 14 – terrorist funding).
• FIAMLA (Financial Intelligence and Anti-Money Laundering Act 2002, as amended)
• Defines TF for compliance,
• CDD/EDD, risk assessment, and
• STR purposes and treats it as a predicate offence.
• UN Sanctions Act 2019 (UNSA)
• Implements UN terrorist lists (strict liability asset freezes).
• FCCA 2023
• Contains the ML offence (Section 36).

Mauritius maintains both UN lists and domestic terrorist designation powers.

1. Criminal Risks for Your Bank

• Money Laundering under FCCA Section 36 (via dual criminality)
• Mauritius applies dual criminality.
• Under FCCA s.2, “crime” includes foreign conduct that “had it taken place in Mauritius, would have constituted a crime”.
• A UK terrorist-financing conviction easily meets this test because Mauritius has its own standalone TF offence under POTA s.14.
• Failure to File an STR under FIAMLA Section 14(3)
• This is often the easiest charge for authorities.
• Banks must report within 5 working days if they suspect (or ought reasonably to suspect) TF or proceeds of crime.
• Failure = criminal offence (fine up to MUR 1 million + up to 5 years imprisonment).

2. Special Scenario: UK TF conviction (no UN listing involved)

• Short answer:
• Full money-laundering risk under FCCA s.36 (because TF is a standalone offence in Mauritius).
• Plus, STR failure risk under FIAMLA s.14(3).
• Why ML risk exists:
• POTA Section 14 criminalises the provision, possession or making available of funds/property for terrorism or proscribed organisations.
• A UK TF conviction qualifies as “proceeds of a crime” under dual criminality.
• Why STR risk always exists:
• FIAMLA s.2 defines TF broadly for compliance purposes (not limited to UN lists).
• Banks must treat any suspicion of TF as reportable.

3. Real-Life Mauritian Case Study: Terrorist Financing Charges (2024–2025)

• Between 2024 and 2025, three Mauritian nationals — Mohammad Zafirr Rechad Golamaully, Lubnaa Rechad Golamaully, and Samuel Tashvin Jodhun — were provisionally charged in Mauritius with financing terrorism.
• The individuals were also placed on Mauritius’ national sanctions list under the UN Sanctions Act 2019.
• The allegations involve providing financial support to ISIS by routing funds through intermediaries in Turkey.
• The case has family links to previous terrorism-financing convictions in the UK in 2016.
• “Trois Mauriciens inscrits sur la liste nationale des sanctions de l’ONU” (17 June 2025)
• Direct link: https://lexpress.mu/s/trois-mauriciens-inscrits-sur-la-liste-nationale-des-sanctions-de-lonu-546390
• This case illustrates that Mauritius actively enforces its terrorist financing laws (under the Prevention of Terrorism Act) and its UN sanctions obligations, even in cases involving cross-border fund flows and family networks.

Key takeaway for banks:

• Even when the underlying activity may not involve a direct UN-listed party at the time of the transaction, once suspicion of TF arises, the obligation to file an STR and manage the risk is immediate and enforceable.

Bottom Line in Plain English

• Unlike proliferation financing, terrorist financing is a full standalone criminal offence in Mauritius (POTA s.14).
• A UK conviction for TF therefore creates strong predicate risk via dual criminality. Your bank can be prosecuted for:
• Money laundering (FCCA s.36), and/or
• Failure to file an STR (FIAMLA s.14).

Practical advice:

• Once your bank becomes aware of the UK conviction, immediately review the client file, apply enhanced due diligence, consider filing an STR, and seek urgent advice from your MLRO and external counsel.

Questions?

• ASK Mat Compliance Consultant & Trainer – Mauritius AML/CFT/CPF Regime

This is a high-level summary (current as of May 2026). Always verify with qualified Mauritian legal/compliance counsel for your specific situation.

Official Sources (ready to copy-paste)

• FCCA 2023 (definition of “crime” in s.2 + ML offence in s.36): https://mauritiusassembly.govmu.org/mauritiusassembly/wp-content/uploads/2023/12/act2023.pdf
• FIAMLA 2002 (TF definitions & STR obligations): https://fcc.mu/wp-content/uploads/2024/06/THE-FINANCIAL-INTELLIGENCE-AND-ANTI-MONEY-LAUNDERING-ACT-2002-1.pdf
• Prevention of Terrorism Act 2002 (standalone TF offence in s.14): https://mauritiuslii.org/akn/mu/act/2002/2/eng@2017-06-30
• UN Sanctions Act 2019: http://mauritiusassembly.govmu.org/mauritiusassembly/wp-content/uploads/2023/03/act0819.pdf

The Mauritius ISIS Financing Case (all confirmed accurate as of May 2026):

Primary / Official Sources

1. National Sanctions Secretariat (NSSec) – Official Communiqué “Addition of Three Entries on the List of Designated Parties” (June 2025)
• Direct link: https://nssec.govmu.org/Communique/Addition_of_Three_Entries_on_the_list_of_designated_parties.pdf
2. NSSec Freezing Orders (Official Notices)
• Mohammad Zafirr Rechad Golamaully: https://nssec.govmu.org/Communique/Notice_for_freezing_order-Mohammad_Zafirr_Rechad_Golamaully-29.08.2025.pdf
• Lubnaa Rechad Golamaully: https://nssec.govmu.org/Communique/Notice_for_freezing_order-Lubnaa_Rechad_Golamaully-29.08.2025.pdf
• Samuel Tashvin Jodhun: https://nssec.govmu.org/Communique/Notice_for_freezing_order-Samuel_Tashvin_Jodhun-29.08.2025.pdf
• Main page: https://nssec.govmu.org/Pages/Freezing_Orders.aspx

Credible Secondary / Analysis Sources (Comsure Group – the most detailed)

3. Comsure Group – “3 Mauritians ADDED to the island’s sanction list AND charged with financing terrorism” (19 June 2025)
• Direct link: http://www.comsuregroup.com/news/3-mauritians-added-to-the-islands-sanction-list-and-charged-with-financing-terrorism/
4. Comsure Group – “Mauritius terrorist offences and financing–legislative frameworks, risk assessments and a notable recent case” (21 September 2025)
• Direct link: http://www.comsuregroup.com/news/mauritius-terrorist-offences-and-financing-legislative-frameworks-risk-assessments-and-a-notable-recent-case/
5. Comsure Group – “Terrorism Financing Risk in Mauritius: One Man’s Freedom Fighter Is Another Man’s Terrorist” (5 October 2025)
• Direct link: http://www.comsuregroup.com/news/terrorism-financing-risk-in-mauritius-one-mans-freedom-fighter-is-another-mans-terrorist/

Local Media (L’Express – Mauritius)

3. “Trois Mauriciens inscrits sur la liste nationale des sanctions de l’ONU” (17 June 2025)
• Direct link: https://lexpress.mu/s/trois-mauriciens-inscrits-sur-la-liste-nationale-des-sanctions-de-l’ONU-546390

Background on UK Family Convictions (2016)

Sources: National Sanctions Secretariat (NSSec) Communiqué & Freezing Orders (June–August 2025); Comsure Group analysis (19 June 2025 & 21 September 2025); L’Express (17 June 2025).