AML Training Session – AML Framework | Money Laundering Stages | STR Reporting | MLRO | Mauritius

In this AML Training Session, we will start by discussing the main laws and regulations that govern the Anti Money Laundering Framework (AML Framework) in Mauritius. After that, we will identify the relevant authority responsible for enforcing these laws. Then, we will delve into the global Definition of Money Laundering, breaking down the Money Laundering Stages. We will also cover what AML entails and highlight key components of its framework. Next, we will examine the significant Consequences of Money Laundering on both a large and small scale. Moving forward, we will explore the process for Reporting Suspicious Transactions internally and externally (STR Reporting). This will include reviewing the roles, responsibilities, and appointments of the Compliance Officer, Money Laundering Reporting Officer (MLRO), and Deputy Money Laundering Officer (DMLRO). Finally, this AML Training Video will address the serious consequences of not identifying and reporting suspicious transactions, focusing on offences under the AML laws in Mauritius. 0:00 – Disclaimer & Intro 11:47 – AML Laws in Mauritius 18:46 – AML Enforcing Authorities 21:57 – Definition of Money Laundering 25:09 – Money Laundering Stages 31:00 – Anti Money Laundering Framework 39:03 – Global Consequences of Money Laundering 43:14 – Reporting Suspicious Transactions 52:50 – Compliance Officer, MLRO & DMLRO 56:45 – Legal Consequences of Money Laundering 59:39 – Conclusion of Money Laundering Mauritius' Anti Money Laundering Framework is designed to prevent the Consequences of Money Laundering. The main legislation includes the Financial Intelligence and Anti-Money Laundering Act 2002 (The FIAMLA 2002) and the Financial Intelligence and Anti Money Laundering Regulations 2018. The Financial Intelligence Unit (FIU) is the key authority responsible for receiving, analyzing, and disseminating financial information related to suspicious activities (STR Reporting or Reporting Suspicious Transactions). Other entities, like banks and financial institutions, must comply with these laws by reporting suspicious transactions and maintaining effective internal controls, including appointing Compliance Officers to manage AML duties. Penalties for non-compliance can include hefty fines and imprisonment. Money laundering is the illegal process of making large amounts of money generated by criminal activities appear legitimate by disguising its origins. It involves three key stages: (1) Placement: Introducing the "dirty" money into the financial system, often through deposits, purchases, or other financial transactions. (2) Layering: Concealing the illegal origins of the funds by moving them through complex layers of transactions, such as transfers between different accounts or jurisdictions. (3) Integration: Reintroducing the now "clean" money into the economy, making it appear as legitimate income through investments, property purchases, or business ventures. The Money Laundering Reporting Officer (or MLRO) is responsible for identifying and reporting suspicious transactions to the Financial Intelligence Unit (FIU) in Mauritius. When a transaction raises suspicion of money laundering or terrorism financing, the MLRO must proceed with Reporting Suspicious Transactions (STR Reporting) with the FIU. This report should include details of the transaction, the parties involved, and any reasons for suspicion. The MLRO must ensure that the report is submitted promptly and accurately, while maintaining confidentiality to avoid "tipping off" the individuals involved. Failure to report can lead to penalties for non-compliance. Compliance Officers in financial institutions are responsible for ensuring that the institution adheres to all legal and regulatory requirements, particularly in areas like Anti Money Laundering (AML Framework). Their duties include monitoring transactions for STR Reporting, implementing internal controls, training staff on compliance protocols, and ensuring the institution follows AML laws. They also coordinate with the Money Laundering Reporting Officer (MLRO) to report any suspicious transactions to authorities. The role is critical for preventing regulatory breaches and protecting the institution from legal and financial penalties. The legal consequences of money laundering can be severe. In Mauritius, individuals or entities found guilty of money laundering face hefty fines, imprisonment, or both. Penalties can include fines up to 5 million rupees and imprisonment for up to 10 years. Additionally, assets gained through illegal activities may be confiscated, and involved parties may suffer reputational damage. Financial institutions that fail to comply with Anti Money Laundering (AML) regulations can also face regulatory sanctions, including fines, license revocation, and other legal actions. ---------- Background Music: Snowfall – Scott Buckley (No Copyright Music) https://www.youtube.com/watch?v=jIsaq_7RqjY ----------