Navigating AML Compliance in Mauritius Real Estate Sector

Are you involved in the real estate sector in Mauritius and looking to navigate Anti-Money Laundering (AML) compliance effectively? Look no further than Compliancery Ltd to assist you with this guideline.

Navigating AML compliance in the real estate sector can be a complex and challenging task, given the high risk of money laundering associated with real estate transactions. With stringent regulations in place to combat financial crime, it is essential for real estate professionals to have a robust AML compliance program in place to protect their businesses and uphold regulatory standards.

Let's do a quick test and see how many points you score on the following 12 minimal requirements. For each requirement you’ve met, give yourself a point. If you score 12 points, that’s great! I think you could almost do our job now. ;-)

1.Appoint a Compliance Officer and Money Laundering Reporting Officer ("MLRO")

In accordance with regulations applicable to your sector, the compliance officer and MLRO can be the same person; however, these functions cannot be outsourced to a third party. Both the compliance officer and MLRO must be directly employed by your organization. Alternatively, if you are a sole trader, you can fulfill both roles, or if your organization does not have employees, one of your board members can assume these responsibilities.

Brief Description of Roles:

• Compliance Officer (CO): The Compliance Officer ensures that the organisation adheres to regulatory requirements, internal policies, and best practices. He/She is responsible for monitoring and managing compliance risks and ensuring that the organisation follows anti-money laundering (AML) laws and regulations.

• MLRO (Money Laundering Reporting Officer): The MLRO is responsible for overseeing the reporting of suspicious activities. He/She is the point of contact of the authorities in the event of suspicious activities.

• DMLRO (Deputy Money Laundering Reporting Officer): The DMLRO supports the MLRO in fulfilling their duties, stepping in when the MLRO is unavailable. They help ensure that the organization maintains proper AML practices and assist in managing reports of suspicious activity. The DMRLO is not mandatory and should be appointed based on the size of your organisation, volume of activity and complexity of operations.

2.Register your organisation on the GoAML Platform

The GoAML platform is used to file suspicious transaction reports with the FIU.

You need to register your activity and obtain an organization ID number.

Additionally, you must register your MLRO and DMLRO, if applicable.

3.Perform a Business Risk Assessment

An AML Business Risk Assessment (BRA) is a structured evaluation of the money laundering and terrorism financing risks that a business faces. It helps organisations identify, assess, and mitigate potential risks associated with financial crimes.

All relevant risk factors should be assessed including:

• the nature, scale and complexity of your activity;

• the products and services you provide;

• the persons to whom and the manner in which the products and services are provided;

• the nature, scale, complexity and location of the customer’s activities;

• reliance on third parties for elements of the customer due diligence process; and

• technological developments.

  
  

In addition, relevant findings of the Mauritian National Risk Assessment, in its updated version, should be included in your BRA.

4.Adopt an AML Policy/Compliance Manual

For more information, read our article on tips for creating an effective AML policy.

5.Adopt a CRA and Checklists As Needed

Checklists are not mandatory, but they can assist you in your day-to-day business. Such checklists may include a client application form, CDD checklist, declaration of assets, etc.

You must have a customer risk assessment framework to profile clients concerning money laundering and terrorism financing risks. Each time you establish a business relationship with a prospective client, you must conduct an AML client risk assessment.

6.Implement Centralised Records

These records are required under legal and regulatory obligations.

You should maintain at least the following records:

• A centralised record of all policies and procedures applicable to your organisation, including details of amendments and their dates.

• A training log documenting all AML training attended by your organisation’s employees, officers, and directors.

• A client log containing basic identification details of your clients, transactions, and the identification of beneficial owners or beneficiaries for individual clients.

• A PEP log for clients identified as politically exposed persons.

• A log of internal suspicious transaction reports made to your MLRO or DMLRO, as well as a log of suspicious transaction reports submitted by the MLRO via GoAML.

  
  

Even if some of the above do not apply to you, we recommend maintaining these registers with "nil entries" where necessary.

7.Adopt a Training Plan

To ensure that relevant personnel in your organisation receive AML training at least annually, as required by regulations.

8.Adopt a Hiring/Recruitment Procedure

The purpose of this procedure is to ensure that, prior to any recruitment, your organisation screens job applicants against sanctions issued by the United Nations Security Council. The screening may also be extended to assess whether the applicant has been subject to lawsuits, including criminal proceedings.

Additionally, where necessary, the procedure should include the assessment and verification of diplomas, certifications, and prior experience.

9.Start Your Day-to-Day Business

Ensure that you have properly implemented the client onboarding procedure, including CDD collection and verification, AML screenings, and client risk profiling.

Additionally, you should establish an ongoing monitoring procedure for recurring clients or long-term transactions. This procedure is essential for refreshing CDD when applicable and for identifying any red flags in the relationship.

10.Prepare Annual Compliance Reports

A report detailing the controls performed by the compliance officer over the year, summarising the contents of this article, along with an MLRO report covering the monitoring and disclosure, if any, of suspicious transactions.

11.Implement Good Record Keeping Systems

Retain the results of all controls and related documentation for 7 years from the date of the controls or transaction with a client.

12.Audit Your AML Systems From Time To Time

Good Luck!

Compliancery Ltd stands out as a trusted partner for real estate professionals seeking expert guidance and support in AML compliance. Our team of experienced compliance specialists understands the unique regulatory requirements of the real estate sector in Mauritius and can provide tailored solutions to help businesses meet their compliance obligations effectively. We have had assisted several organisations over the years of any size and with different business models.

In addition to our compliance services, Compliancery Ltd also offers online trainings focused on AML compliance and data protection. Whether you are a real estate developer, agent, or investor in Mauritius, partnering with Compliancery Ltd can help you streamline your AML compliance efforts, mitigate risks, and demonstrate your commitment to upholding best practices and transparency in your business operations.