info@businessghana.com
Nafiisah Jeehoo, Senior Associate, Bowmans Mauritius
In boardrooms and breakrooms alike, three letters are quietly reshaping the way leading companies think about their futures. Like in many other places in the world that have rallied behind them, in Mauritius, ESG is no longer being seen as merely a moral compass. It is now becoming a business imperative on which key stakeholders increasingly demand accountability.
Recently the Financial Crimes Commission (FCC) issued a new set of guidelines under Section 52 of the Financial Crimes Commission Act (FCCA) outlining compliance standards that are applicable to all legal persons ranging from small and medium sized enterprises to large scale corporations.
Legal requirements – Who must comply?
The FCCA adopts a broad definition of a legal person, encompassing any entity that is not a natural individual, including private entities. This expansive scope ensures that virtually every business structure in Mauritius falls within its regulatory scope. Those affected range from public and private companies to partnerships, trusts, and foundations.
Legal persons, regardless of industry or size, are now not only subject to oversight but are also required to implement robust internal controls and preventive measures aimed at combating serious offences (including corruption, money laundering, fraud, and the financing of drug-related criminal activities) as set out under Part III of the FCCA.
This marks a shift from the previous regime, which focused primarily on banks and financial institutions. That said, the level and complexity of compliance will vary. The FCCA adopts a risk-based approach, meaning that legal persons must calibrate their compliance efforts according to their nature, size, business activities, and exposure to financial crime risks.
A large corporate group with cross-border operations will naturally face more stringent expectations than a small domestic partnership. However, minimum standards, such as adopting a compliance policy and appointing a designated officer, apply across the board.
Compliance is not optional, and legal persons must be able to demonstrate, that they have adopted and are actively enforcing the new guidelines.
Core areas of the guidelines
The new guidelines establish five core guiding principles that should underpin the compliance framework of every legal person:
Top-level commitment – Senior management must set the tone for ethical conduct by establishing and fostering integrity and a robust governance and control framework to prevent the commission of offences.
Risk assessment – Legal persons must conduct thorough and regular risk assessments to identify the areas where the entity is most vulnerable to financial crimes, and prioritise higher risk areas.
Controls and prevention – Adequate controls must be established thorough due diligence, reporting systems, ownership transparency, and transaction monitoring.
Monitoring and enforcement – Legal persons are required to conduct systematic reviews and audits of their procedures, and enforce disciplinary measures for breaches.
Training and communication – Staff and partners must be trained with the knowhow to spot risk areas and communicate policies clearly.
Gifts, hospitality and promotional policy
The guidelines also emphasise the risk surrounding gifts, hospitality and promotional expenses being used as a means of bribery. Along this line, legal persons are encouraged to adopt clear policies ensuring all expenditures are transparent, proportionate, and documented.
A new standard for Mauritius
With these guidelines, Mauritius is setting a new benchmark for ethical business conduct fully aligned with international best practices. The message is clear: accountability and integrity are not reserved for a select few; they are the responsibility of every legal person, regardless of size or sector.
By embracing these standards, businesses will not only protect themselves from legal and reputational risks, but will also play a vital role in strengthening the integrity and global standing of Mauritius' business environment.
With the Guidelines now in force, regulators and enforcement authorities are provided with a clear standard to evaluate whether an entity's compliance measures are adequate.
Failure to adopt and implement such procedures may expose a legal person to significant liability, including prosecution and a fine of up to MUR 20 million, even in the absence of an actual offence.
