On 6 October 2020 the ECOFIN Council updated the EU list of third country non-cooperative jurisdictions for tax purposes (commonly referred to as the EU 'blacklist') and also updated the EU list of third country cooperative jurisdictions subject to the successful delivery of their commitments (commonly referred to as the EU 'greylist'). Mauritius joins EU Money laundering blacklist, expresses indignation Friday, 05 June 2020 18:42 (Ecofin Agency) - Following the adoption of new measures, the European Union added Mauritius to its blacklist on money laundering and terrorist financing. In April 2019, a Follow-Up Report concluded that Mauritius met the requirements of “technical compliance”, meaning that our legislative and regulatory framework was in line with international norms. The EU list however does not include Albania, a candidate country to join the bloc, and Iceland, a close trading partner of the 27-nation Union. The European Commission, the executive branch of the European Union, has included Mauritius in its revised list of high-risk countries with strategic deficiencies in their anti-money laundering and counter-terrorist financing frameworks.The new methodology takes into account the interaction between the EU and the Financial Action Task Force (FATF) listing … 1 October 2020: Mauritius: 1 October 2020: Mongolia: 1 October 2020: Myanmar: 1 October 2020: Nicaragua: 1 October 2020: Pakistan: 2 October 2018: Panama: 1 October 2020: Syria: 20 September 2016: Trinidad and Tobago: 14 February 2018: Uganda: 20 September 2016: Vanuatu: 20 September 2016: Yemen: 20 September 2016: Zimbabwe: 1 October 2020 Mauritius has been included on the blacklist of countries suspected of participating, indirectly, in money laundering and terrorist financing. Could and should this situation have been avoided? The blacklist prohibits European investments in new funds in Mauritius, with the ban also affecting all European Investment Bank (EIB), funding, investments, lending and operations. And what we see is not pretty. Albania, Costa Rica, Mauritius, Serbia and Switzerland have implemented ahead of their deadline all necessary reforms to comply with EU tax good governance principles. Save my name, email, and website in this browser for the next time I comment. The assessments occur on a cycle spaced out by several months so certainly, it is likely that time has not been on our side. Should I consult an expert who can advise me properly? The EU is of the view that these strategic deficiencies pose significant … The EU blacklist will become applicable as from 1 October 2020. This list is part of the EU's work to fight tax evasion and avoidance and aims to create a stronger deterrent for countries that consistently refuse to play fair on tax matters. Your email address will not be published. This high risk third-country list, in the form of a Delegated Regulation, if approved by the European Council and the European Parliament within one month, with a possible extension of one additional month would become effective on October 01, 2020. The EU’s … Some of the countries listed today are already on the current EU list, which includes 16 countries. Your email address will not be published. While, under EU Commission criteria, the Cayman Islands must be considered as cooperative, the Tax Justice Network provided evidence that this was the jurisdiction responsible for the most global tax losses, costing countries over USD 70 billion per year, equal to 16.5% of tax losses worldwide. The Financial Action Task Force (FATF) and the European Union (EU) are among the leading international bodies issuing guidance on measures to combat money laundering. The fact that a country is included on the EU’s blacklist does not trigger economic or diplomatic sanctions, but will operate instead to require additional KYC measures to be taken by regulated businesses subject to the Money Laundering Regulations 2017 (MLR 2017) including banks, lawyers, estate agents and tax advisors. Uganda was already on the list which now has a total of 22 countries. The EU is of the view that these strategic deficiencies pose significant threats to the financial system of the European Union. Any changes in the situation of individual jurisdictions or changes to the methodology will be incorporated at the next revision, planned for October 2020. 1 These jurisdictions either have no corporation tax or have a corporation tax rate that is lower than 9% 2 Countries blacklisted by the European Union The Dutch List will be updated each year, while the EU list will be updated in the first quarter of 2019. The Commission adopted the list in the form of a Delegated Regulation. EU Blacklisted Countries for Money Laundering . Barely six months after the EU Council declared Mauritius to be compliant with its good tax governance principles (and removed it from its Grey List Annex II), another EU group has delivered a body blow to the island seen as the business gateway to Africa. The Bill, presented by the Danish Ministry of Taxation, seeks to implement defensive measures against countries on the EU’s list of non … There are many economic challenges the country will have to face in the wake of the Covid-19 pandemic. She points out our weaknesses and what measure should be taken. Next steps. It is likely to be an uphill battle in the face of slowed down economic activity and in the face of higher scrutiny being imposed by international partners. Having spent many months rectifying various perceived issues … All the platforms of financial services, and financial products available today have the possibility of being exploited for illegal activity. This is how Mauritius… Uganda was already on the list which now has a total of 22 countries. The Bahamas, Barbados, Botswana, Cambodia, Ghana, Jamaica, Mauritius, Mongolia, Myanmar/Burma, Nicaragua, Panama, Uganda, and ; Zimbabwe; have strategic deficiencies in their AML/CFT regime, also based on the fact that these countries were identified in the FATF document “Improving Global AML/CFT Compliance: on … Whilst Mauritius was celebrating its 51st independence anniversary on 12 March 2019, it was also rejoicing the good news that it does not feature on the EU’s list of non-cooperative jurisdictions for tax purposes adopted by the EU council. The EU blacklist will become applicable as from 1 October 2020. All businesses caught by MLR 2017 will have to apply … This follows the adoption of a new delegated regulation (Delegated Regulation) by the EU in relation to third countries which have strategic deficiencies in their ‘anti-money laundering/combat the financing of terrorism’ regimes (AML/CFT) and that pose significant threats to the financial system of the … It might be worth going into some detail as to how we came to be placed on this list. Four countries from Africa have been added, namely: Botswana, Ghana, Mauritius and Zimbabwe. EU Blacklist Update: FATF commends the tremendous progress made by Mauritius Article Published on December 22, 2020 As previously communicated in past editions 1 of our newsletters, the inclusion of Mauritius on the EU list - on account of its addition to FATF’s ‘Jurisdiction under increased monitoring’ list -has taken effect since 1 October 2020. In a Communique issued on 3 June 2020 the Government of Mauritius, through the Prime Minister's Office gave a vigorous response to the European Commission's decision of 7 May 2020 to include Mauritius on its list of high-risk third countries (the "List"), deploring its flawed decision-making process, its breach of fundamental EU principles and the unfortunate timing of this … The Bill proposes both restrictions on deductibility for certain payments and stricter dividend taxation. Wha… Could and should this situation have been avoided? This saw it put Mauritius on a blacklist, along with The Bahamas, Barbados, Botswana, Cambodia, Ghana, Jamaica, Mongolia, Myanmar, Nicaragua, Panama and Zimbabwe. Mutual Evaluation Reports; Typologies Reports; Guidance and Best Practice Reports ; Risk-Based Approach Reports; Information for the Private Sector ; FATF Business Bulletin; FATF Annual Report 2019-2020; … The four countries are Botswana, Ghana, Mauritius and Zimbabwe. There are two types of list you should know about, the first is blacklist and grey list. Blacklist. Mauritius does not feature on the Council of the European Union’s blacklist of non-cooperative jurisdictions for tax purposes. It came as a shock for the offshore companies when Mauritius has been referred as high-risk country regarding money laundering. The Government of Mauritius has already initiated actions to open a dialogue with the EU. Fourth, implementing a risk-based approach for supervision of its NPO sector to prevent abuse for TF purposes, and finally, demonstrating the adequate implementation of targeted financial sanctions through outreach and supervision. Six countries were also removed from the list: Bosnia-Herzegovina, Ethiopia, Guyana… In a communique issued by the Government of Mauritius on the 9 May 2020, that the decision of the EU is ”contrary to the spirit of dialogue and partnership which binds Mauritius and the EU.” This proposition from the EU was seen as unjustified and provoked a public outcry in Mauritius. 27 Aug 2020. As a user, do I understand what the risks are linked to this product / service? The axe has fallen, and in a press release made public yesterday, the EU has added The Bahamas, Barbados, Botswana, Cambodia, Ghana, Jamaica, Mauritius, Mongolia, Myanmar, Nicaragua, and Zimbabwe, considered as “high-risk third countries with strategic deficiencies in their regime regarding anti-money laundering and countering terrorist financing” to its money-laundering blacklist. As with any tool related to financial services or an investment product, is most important is that users of these services and industry professionals alike are informed of the risks associated with the use of cryptocurrencies and know how to address a situation that indicates any illegal activity. If, in the future, jurisdictions are added to the EU list that are not on the Dutch List, the measures will also apply to these jurisdictions. Director of Temple Consulting, Vandana Boolell states that Mauritius’ name being included in the European Union list will affect out image. This latest announcement is a revised list which is due to come into force on 1 … This selection will switch the site from presenting information primarily about Mauritius to information primarily about . Under the draft proposal, the Commission added Panama, the Bahamas, Mauritius, Barbados, Botswana, Cambodia, Ghana, Jamaica, Mongolia, Myanmar, Nicaragua and … In a Communique issued on 3 June 2020 the Government of Mauritius, through the Prime Minister's Office gave a vigorous response to the European Commission's decision of 7 May 2020 to include Mauritius on its list of high-risk third countries (the "List"), deploring its flawed decision-making process, its breach of fundamental EU principles and the unfortunate … EU member states currently decide in secret which countries are tax havens, and do so based on vague criteria with no public or parliamentary scrutiny. It now needs to be applied. This needs to change. Q&A sheet (situation on 6 October 2020) Evolution of the EU List Has Mauritius been given ANY opportunity to make representations to the EU, prior to finding our name on any potential blacklist, arbitrarily? It has to be highlighted that Mauritius has never featured on the EU’s blacklist for its tax regime, and the recent prompt commitment undertaken by the Government of Mauritius on 4 February 2019 resulted in the … Blacklisted countries face difficulties accessing EU funding programmes, while European companies doing business in those jurisdictions have to take additional compliance measures. On May 07, 2020, the European Commission announced the adoption of a new list of third countries which, according to the Commission, had strategic deficiencies in their anti-money laundering and counter terrorism financing (AML-CFT) regimes. Mauritius strengthens AML/CFT framework to avoid EU blacklist. As such, by the end of 2018 only five jurisdictions remained listed. Second, ensuring the access to accurate basic and beneficial ownership information by competent authorities in a timely manner. If a country is in FATF blacklist, international banks may refuse payment transactions from these countries. Great post by the way. Background to the Bill. In 2018, a Mutual Evaluation Report (MER) of Mauritius by the Eastern and Southern Anti Money Laundering Group (ESSAMLG); a regional FATF-style body of which Mauritius is a founder member, stated that there were a number of deficiencies in our framework which needed to be addressed. What measures and sanction should be taken to tackle this issue? This is how Mauritius, much to its surprise, was included therein. Mauritius, Mongolia, Montenegro, Nauru, Niue, New Caledonia, Oman, Palau, Panama, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, San Marino, Serbia, Seychelles, Switzerland, Swaziland, Taiwan, Thailand, Tunisia, Turkey, Turks and Caicos Islands, Uruguay, Vanuatu, Vietnam Moved from black list to grey list Liechtenstein and Peru It was adopted for the first time in 2017 as a response to tax avoidance in the EU, screening 92 countries. As part of a series of measures to strengthen the EU’s framework against money laundering and terrorist financing, the European Commission identified Mauritius as a “high-risk” third country for the purposes of its anti … In February 2020, Mauritius was put on the FATF grey list of jurisdictions under increased monitoring and the proposed EU blacklisting is a direct consequence thereof. For Mauritius, the EU identified 5 areas of deficiencies after assessing the latest information in this context from the FATF, namely: (i) deficiencies in demonstrating that the supervisors of its global business sector implement risk-based supervision; (ii) failure to ensure access to accurate beneficial ownership information by competent authorities in a timely manner; (iii) failure to demonstrate that law enforcement authorities have capacity to conduct complex money laundering investigations; (iv) failure in implementing a risk-based approach for supervision of its non-profit organisation sector; and (v) failure to demonstrate adequate implementation of targeted financial sanctions through outreach and supervision. This latest announcement is a revised list which is due to come into force on 1 October, subject to approval by the European Parliament and Council. The fact that we are on this list at all is an indication that there on these two aspects, there is not only some further improvement to be made but also that there has existed a gap from some time. These countries will be removed from annex II of the conclusions. Is this product / service licenced by a local or international regulator? The EU blacklist will become applicable as from 1 October 2020. Our role as an international financial centre of repute relies heavily on two things: 1) the ongoing adherence to international norms as set out by international bodies including the The Financial Action Task Force (FATF) and the European Union (EU) and 2) a strong diplomatic presence to ensure open dialogue and to ensure that as a smaller country, our voice is heard. On this basis, the European Union (EU) also concluded that Mauritius … If a country appears on the list, banks and other professionals are obliged to increase their scrutiny of all business transactions involving operators located in that territory. Background . Adding to my own bookmarks regards, surely consider a follow-up blog post. The government and the private sector sought to reassure the international investment community that Mauritius remains a credible and trusted jurisdiction of substance and good repute. This latest announcement is a revised list which is due to come into force on 1 October, subject to approval by the European Parliament and Council. What is also worrying in this case is that this listing does not seem to be a fair or accurate reflection of the competence of the professionals in the industry or of our level of adherence to international norms. Will this be a new trend for illegal activities? First, demonstrating that the supervisors of its global business sector and DNFBPs (Designated Non-Financial Businesses and Professions (DNFBPs) implement risk-based supervision. EU has recently added Mauritius and other countries to the list of “high-risk countries with strategic deficiencies in their regime regarding anti-money laundering and countering terrorist financing” to its money-laundering blacklist. On 7 May 2020 Mauritius was added to the EU list of high-risk third countries. Mauritius strengthens AML/CFT framework to avoid EU blacklist. Who knows maybe it really is just my phone. Wha… The EU list however does not include Albania, a candidate country to join the bloc, and Iceland, a close trading partner of the 27-nation Union. Thank you for this update in information. Third, demonstrating that Law Enforcement Agencies have capacity to conduct money laundering investigations, including parallel financial investigations and complex cases. However, this is no doubt a time for industry practitioners and the authorities to work very closely together to find something that works. The European Union (EU) has included Mauritius and 11 other countries on its revised list of high-risk countries allegedly having strategic deficiencies in their anti-money laundering and counter terrorist financing frameworks (AML-CFT Framework). The new countries, which were added to the bloc's notorious blacklist on Thursday, include The Bahamas (which was removed from the EU's tax blacklist only in February), Barbados, Jamaica, Nicaragua and Panama. The Bahamas, Barbados, Botswana, Cambodia, Ghana, Jamaica, Mauritius, Mongolia, Myanmar/Burma, Nicaragua, Panama, Uganda, and ; Zimbabwe; have strategic deficiencies in their AML/CFT regime, also based on the fact that these countries were identified in the FATF document “Improving Global AML/CFT Compliance: on … The European Union tax haven blacklist, officially the EU list of non-cooperative tax jurisdictions, is a tool of the European Union (EU) that lists tax havens.It is used by the Member States to tackle external risks of tax abuse and unfair tax competition. Over the course of 2018, most of the countries and territories on the blacklist engaged in constructive dialogue with the EU and made commitments to comply with the EU’s criteria. Both countries are on the FATF list. On 7 May 2020, the Commission announced amendments to the EU money laundering directive (contained in Directive 2015/849), aimed at … 28 May 2020 By Nicolas Richard The European Union (EU) has included Mauritius and 11 other countries on its revised list of high-risk countries allegedly having strategic deficiencies in their anti-money laundering and counter terrorist financing frameworks (AML-CFT Framework). Some useful questions to ask include: What is the status of this product / service in the legal framework in Mauritius? The first big alarm signal would have come in March 2020, when Mauritius was placed on the FATF grey list. These countries were unable to uphold their implementation commitments, which were due at the end of 2019 (see Euro Tax Flash issue 424 for details). EU has recently added Mauritius and other countries to the list of “high-risk countries with strategic deficiencies in their regime regarding anti-money laundering and countering terrorist financing” to its money-laundering blacklist. Further information on DLA Piper Africa can be, Infrastructure, Construction and Transport. There are also consequences in terms of flows of EU funding. (Ecofin Agency) - Following the adoption of new measures, the European Union added Mauritius to its blacklist on money laundering and terrorist financing. This means that the concept of money laundering and the implementation of countermeasures has to be embraced by sectors such as precious gems/jewellery and real estate/property development sectors that may previously not have felt as concerned or been actively involved. At the time those findings were disputed, and updated legislations were also introduced. https://www.urmilaboolellchambers.com/mauritius-blacklisted Both countries are on the FATF list. 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