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Botswana and Mauritius are no longer subject to increased scrutiny by the EU/EC FATF (21 October 2021)
  • ADG LEGAL
  • Black list
  • Botswana
  • FATF
  • Financial Action Task Force
  • FInancial Action Task Force (FATF)
  • Green list
  • Grey list
  • Izzat-Begum B. Rajan
  • Mauritius
  • TAX LAW

Botswana and Mauritius are no longer subject to increased scrutiny by the EU/EC FATF (21 October 2021)

Botswana and Mauritius exit the Financial Action Task Force (FATF) grey list

The EU/EC Financial Action Task Force (FATF) identifies additional jurisdictions, on an on-going basis, that have strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. Several jurisdictions have not yet been reviewed by the FATF or their FATF-Style Regional Bodies (FSRB) but will be in due course.

In May 2020, the European Commission (EC) identified Mauritius as a high-risk third country with deficiencies in its Anti Money-Laundering and Counter Financing Terrorism (AML/CFT) regime. Such classification by the EC has been made in the light of the FATF classifying Mauritius in February 2020 under its “grey list” (i.e., jurisdiction with strategic deficiencies). The inclusion of Mauritius on the EU AML List of High-Risk Third Countries became applicable on 1 October 2020.

Since the start of the COVID-19 pandemic, the FATF has provided some flexibility to jurisdictions not facing immediate deadlines to report progress on a voluntary basis. The following African countries had their progress reviewed by the FATF since June 2021: Botswana, Mauritius, Morocco, Senegal, Uganda, and Zimbabwe. Following the recent review, the FATF now also identifies Mali.

On 21 October 2021, the FATF congratulated Botswana and Mauritius for the significant progress they have made in addressing the strategic AML/CFT deficiencies identified earlier by the FATF and included in their respective action plans. Both countries will no longer be subject to the FATF’s increased monitoring process. This comes after both countries received an on-site visit, despite the COVID-19 crisis. Botswana and Mauritius will work with the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) of which both countries are a member, to continue to strengthen their AML/CFT regime.

For more information and communication of the FATF following the meetings held at the end of October 2021: October 2021 EU Financial Action Task Force (FATF).

To have a discussion about your tax matters, please reach out to our Head of Tax Practice and Senior Counsel, Izzat-Begum B. Rajan.