Introducing the budget today at the National Assembly, the Minister of Finance, Mr Renganaden Padayachy reiterated his deep resolve to spearhead the progress of the country through concrete actions during this period of the pandemic.
“It is difficult to predict if the world will go back to normal. As at today, the Government’s only mission is the commitment towards the people. The challenge is daunting, but our response is historical and that is exactly what this 2020-21 Budget focuses on. We will together rise up to the new normal.”He said
This is coming up a few weeks after the European Commission, the executive branch of the European Union, included Mauritius in its revised list of high-risk countries with strategic deficiencies in their anti-money laundry and counter-terrorism financial frameworks. Putting Mauritius on the FATF’s “grey list”, early this year led to concerns that trades and fresh FPI registrations from the country could be halted in India though this was speculated to be minimal especially vis a vis their business relations with india.
However, this could greatly affect the country’s image globally reason for government’s commitment to reverse the situation. In fact in a statement by Khushboo Chopra, head of business development To Mauritius-India following the listing, he said:
“The Government of Mauritius has reiterated its high level of political commitment to implement the action plan of the FATF at the earliest to exit the FATF and the EU lists and reassure the global investment community that Mauritius remains a credible and trusted jurisdiction”.
Today’s proposed budget takes into consideration resolves from the European Union as the Minister explains “the Government is committed to completing the five remaining Recommendations under the Financial Action Task Force Action Plan for Mauritius by September 2020”. To comply with these five recommendations, Government will implement the following measures:
- Risk based supervision in accordance with the recommendation of the FATF(An inter-governmental body that sets anti money-laundry standards);
- Targeted outreach programmes to promote clear understanding of money laundering and terrorist financing risk;
- Increasing reporting of suspicious transactions;
- Targeted financial sanctions in cases of terrorist financing;
- Timely access to beneficial ownership information.
It is evident the Government of Mauritius is therefore determined to ensure their country remains an attractive investment destination. With the implementation of the new budget, the country remains positive things will return to normal in this regard.