Mauritian firm fined for AML failures (A LOOK BACK TO 2020)
In June 2020, the FSC conducted an on-site inspection at the premises of the PCL Management Services (Mauritius) Ltd (the “Company”), THE COMPNAY holds a Management Licence issued by the Financial Services Commission, Mauritius (the “FSC”) on 15 November 1994.
This inspection revealed that the Company was in breach of numerous statutory obligations:
- A deficiency letter was thus issued to the Company detailing the on-site inspection findings and requiring the Company to submit an action plan to remedy the statutory breaches.
- The Company responded to the deficiency letter and was required to submit periodic reports on the implementation of its remedial plan.
- Notwithstanding the remedial plan, the matter was referred to the Enforcement Directorate of the FSC for such action, as it deems appropriate in relation to the contraventions revealed by the inspection.
Decision of the EC
- In light of the above and based on the written representations of the Company, the EC has resolved to impose an AP amounting to USD 4,950 on the Company under sections 7(1) (c) (v) and 52(3) of the FSA.
Breaches committed by the Company
The EC observed that the following breaches of the Financial Intelligence and AntiMoney Laundering Act (the “FIAMLA”) and the Financial Intelligence and Anti-Money Laundering Regulations 2018 (the “FIAMLR”) were committed by the Company
- 2.1.1. Section 17 of the FIAMLA
- The Company has contravened section 17 of the FIAMLA inasmuch as it has not undertaken a risk assessment to identify, assess and understand the money laundering and terrorism financing risks in relation to its business.
- Such a policy document was subsequently submitted to the FSC on 08 June 2020 but during the Inspection, there was no evidence to support that the Company carried out the risk assessment.
- 2.1.2. Section 17A of the FIAMLA
- In accordance with section 17A of the FIAMLA, the Company was required to establish policies, controls and procedures to mitigate and manage effectively the risks of money laundering and terrorism financing which it has identified in its risk assessment. In this regard, the Company has compiled a Compliance Procedures Manual.
- However, as at the date of the Inspection, the Compliance Procedures Manual was not finalised and was not approved by the Company’s senior management thereby resulting in a breach of section 17A (2) of the FIAMLA.
- However, the Compliance Procedures Manual was thereafter finalised and approved by the Company’s board on 10 August 2020.
- 2.1.3. Regulation 3 of the FIAMLR
- As at the Inspection, the Company had infringed regulation 3 of the FIAMLR since it had failed to take reasonable measures to ascertain and verify the identity of the beneficial owner of [Edited for Confidentiality], one of its clients.
- Nonetheless, post Inspection, the Company has endeavoured to update its clients-related Customer Due Diligence records.
- 2.1.4. Regulation 22(1) (d) of the FIAMLR
- The Company infringed regulation 22(1) (d) of the FIAMLR by failing to implement an independent audit function to review and verify compliance with, and effectiveness of the measures that it has taken to maintain compliance with the FIAMLA and the FIAMLR
READ THE PUBLIC STAATEMENT https://www.fscmauritius.org/media/94255/publication-notice.pdf