FINANCIAL INTELLIGENCE UNIT - FIU Mauritius · Pursuant to section 34 of the Financial Intelligence and Anti-Money Laundering Act, 2002, I am pleased to present to you the third Annual

ANNUAL REPORT

2005

FINANCIALINTELLIGENCE UNIT

REPUBLIC OF MAURITIUS

cover 4/12/06 12:22 PM Page 1

MISSION STATEMENT

To provide leadership in financial intelligence in Mauritius and the region

in order to combat financial crime, money laundering and terrorist

financing by providing high quality, accurate, comprehensive and

timely financial intelligence

Table of contents

Acronyms

1. AML/CFT Anti-Money Laundering and CombatingFinancing of Terrorism

2. EG Egmont Group3. ESAAMLG Eastern and Southern Africa Anti-Money

Laundering Group

8. FATF Financial Action Task Force5. FinCEN Financial Crimes Enforcement Network6. FIU Financial Intelligence Unit7. IMF International Monetary Fund8. STRs Suspicious Transactions Reports

1. Letter of Transmittal 2

2. Chairman’s Message 3

3. Director’s Message 4

4. AML/CFT Overview 6

5. Supporting Domestic AML/CFT Efforts 10

National AML/CFT Results 10

National Committee on AML/CFT 11

Information Technology, Infrastructure and Support 11

Human Resources Capacity 13

AML/CFT National Awareness and Training 13

6. Supporting Regional AML/CFT Efforts 14

7. Supporting Global AML/CFT Efforts 18

Egmont Group 19

Sponsoring the Admission of new FIUs to the Egmont Group 21

Bilateral Memoranda of Understanding 21

8. Action Plan for 2006 22

9. Auditor’s Report and Financial Statements 23

10. Appendices 35

I. Board Members 36

II. Organisational Chart 37

III. Staff List 38

IV. Participation in Overseas Missions and Training Courses 40

V. FIU Information Security Architecture 41

VI. Egmont Group of FIUs 42

11. Boxes

1. AML/CFT Legislative Framework in Mauritius

2. FATF Special Recommendation IX : Cash Couriers

3. National Committee on AML/CFT

4. Egmont Group of FIUs

Annual Report 11 mars 2005 3/21/06 4:16 PM Page 1

The Honourable R.K. SithanenDeputy Prime MinisterMinister of Finance and Economic DevelopmentGovernment CentrePort Louis

Dear Sir,

Pursuant to section 34 of the Financial Intelligence and Anti-Money Laundering Act, 2002, I ampleased to present to you the third Annual Report of the Financial Intelligence Unit. The FinancialStatements cover the period July, 2004 to June, 2005 and the report provides information on ouractivities in 2005.

Yours sincerely,

L.C.L.K. S Sam SoonChairmanFIU

28th March, 2006

Letter of Transmittal

2F I U A N N U A L R E P O R T 2 0 0 5



By the start of 2005, the FIU had completed to a large extent the necessary capacity-building tomeet the demand of other local stakeholders involved in AML/CFT in Mauritius as well as that ofits overseas partners. Furthermore, as the year progressed, the FIU contributed in a more signifi-cant manner to bi-lateral, regional and international AML/CFT initiatives by participating inAML/CFT strategy building exercises of several ESAAMLG countries, developing FIU skills in Africaand participating in the activities of the Egmont Group.

As regards its non-core functions in Mauritius, the FIU continued to contribute to AML/CFTawareness creation, training and strengthening working relationships with investigators and regu-lators. The last initiative of the FIU is the conduct of a first National Survey to assess the extent, risksand latest trends in money laundering and financing of terrorism on the island.

However, an effective AML/CFT strategy is not built on the strength of FIU alone. The output ofthe FIU, i.e. financial intelligence and analytical reports become the input of other AML/CFT stake-holders, mostly investigators and regulators. In this context, there is no doubt that disseminationor intelligence reports of the FIU have a positive impact on deterrence and prosecution of financialcrimes. The FIU also plays a preventive role because the suspicious transactions reports it receivesand its international links allow for identification of new trends or typologies of financial crimewhich are communicated to financial institutions through sanitised reports or case studies. It istherefore important that strong co-operative links exist between all AML/CFT stakeholders inMauritius to fight the common enemy i.e. money launderers and those financing terrorism.

The achievements of the FIU in 2005 would not have been possible without the professionalismof the staff and their focus on excellence. I am grateful to the Director and his staff for these qua-lities. I also want to put on record my thanks to the two Members of the Board for their under-standing and unflinching support.

L.C.L.K. S Sam SoonChairman

Chairman’ s Message


The year 2005 was marked by a deeper involvement in regional AML/CFT initiatives rangingfrom leading workshops on the development of national AML/CFT strategies for twelve ESAAMLGmember states to training activities on the establishment of FIUs in Eastern, Southern and WestAfrica. The FIU was thus able to live up to its mission statement of providing leadership in the regionin financial intelligence work. Within the FIU itself, we enhanced an IT infrastructure for data stor-age and operationalised our text retrieval system which was developed in-house with the supportof State Informatics Ltd. This achievement in our IT infrastructure and support will not only allowus to conduct more complex analysis and produce high-quality financial intelligence but also posi-tion the Mauritius FIU as a model for the region.

At the national level, we made a number of proposals to the National Committee to removeexisting legal ambiguities and bring amendments to legislation to improve the effectiveness of ourAML/CFT framework. More recently, we have highlighted the need for a results-oriented nationalAML/CFT strategy with set goals or targets to be achieved within specified time frames.

As regards domestic awareness creation, the FIU did not hold its third Annual National Seminarin September, 2005 as discussions on national AML/CFT strategy were not initiated at that time. Inthe meantime, the Board of the FIU agreed to the conduct of a National Survey on Money Launderingand the Financing of Terrorism. The Survey Report is expected in April, 2006 and it will no doubt bea valuable document in shaping FIU’s future strategy and highlight remaining bottlenecks in the imple-mentation of our AML/CFT framework. The FIU also envisages working together with reportinginstitutions and AML/CFT stakeholders to meet emerging challenges of cyber crimes, non face-to-face transactions as well as addressing the money laundering risks in real estate businesses.

At the regional level, the FIU maintained a lead role in AML/CFT initiatives along with theFinancial Intelligence Centre of South Africa. Our commitment to the region was reflected in our vitalcontribution to development of a three-year strategic plan for ESAAMLG and FIU developmentacross Africa. At the international level, we participated fully in the activities of the Egmont Group,outreaching new FIUs in the region and beyond. We envisage an enhanced commitment to theregional and international AML/CFT efforts in 2006 as demand for our expertise remains high.


Director’s Message



Director’s Message

There is no doubt that an effective AML/CFT regime is appreciated by international organisa-tions and foreign investors alike. Our strategic positioning and ongoing development as a region-al business and financial hub also requires us to be at the vanguard of AML/CFT action to avoid beingside-tracked as a conduit for illegal funds. Lastly, a successful AML/CFT regime will no doubt addressthe qualms of financial institutions which invested in developing internal procedures and controlmechanism to fight economic crimes. At the end of the day, every effort is necessary to realiseGovernment’s objective of appeasing unnecessary apprehensions on integrity of our financialsystem, reputational risks, economic distortions and long-term economic development that mayarise from a weak and ineffective AML/CFT regime.

The progress of the FIU owes much to its dedication of its staff and their commitment to hardwork and discretion. I am very grateful to them all as well as the Board for their support. A specialthank you to our foreign partners, namely ESAAMLG, the Egmont Group, FinCEN of the UnitedStates and Tracfin of France as well as the UNODC and the IMF which do not hesitate to call on ourexpertise for FIU development in the region and beyond.

S.D. BikooDirector



AML/CFT Overview


Money laundering and terrorist financing mayoccur almost anywhere in the world. Indeed, theyhave become significant global problems in recentyears, with serious social and economic conse-quences. Considerable efforts are thereforedeployed by individual countries and internation-al organisations such as the United Nations,Financial Action Task Force (FATF), the EgmontGroup, the World Bank and the IMF to set up appro-priate AML/CFT counter measures and norms.

The main international body involved inAML/CFT is the FATF which was set up at the 1989Economic Summit of the G7 countries in Paris. TheFATF developed the minimum standards in the 40Recommendations on Money Laundering, whichwere drawn up in 1990 and revised in 1996 and2003. As regards combating financing of terrorism,the international response has been to put intoplace internationally accepted standards andcalled on Governments to become parties to rele-vant international conventions including the 1999United Nations International Convention for theSuppression of the Financing of Terrorism. TheUnited Nations Security Council also adoptedResolution 1373 of 2001, through which it estab-lished the Counter-Terrorism Committee which ismandated to monitor the implementation of theresolution urging Governments to prevent andsuppress the financing of terrorist acts. Meanwhile,the FATF, in recognition of the vital importance ofcountering terrorist financing, agreed on eightrecommendations, which, when combined withthe 40 Recommendations on Money Laundering,set up the basic framework for detecting, prevent-ing and the suppressing of the financing of terror-ism and terrorist acts. Other supporting organisa-tions including the IMF and the World Bank whichhelp countries strengthen their financial supervi-sion and regulation to prevent financial sector

crime and money laundering. The World Bankfocused on helping countries to identify andaddress structural and institutional weaknessesthat contribute to the lack of market integrity andthe potential for financial abuse. The EgmontGroup for Financial Intelligence Units, now poisedto become a formal international organisation inits own right, developed operational frameworks formutual assistance in exchange of information atthe intelligence level to detect and investigatefinancial crimes. Against this backdrop of growingglobal AML/CFT efforts, no country can afford toremain lax or be the weakest link in the networkset up to combat perpetuators of financial crimes.It is also futile to argue that a particular country,however small, developed or under-developed, issafe from the tentacles of global financial crimeand terrorism.

The first formal response of Mauritius to thelurking dangers of money laundering dates backto mid-June, 2000 when the Economic Crime andAnti-Money Laundering Act (ECAML) was enacted.This was followed by new AML/CFT legislation in2002 and adherence to UN conventions. Pleasesee box on the evolution of the legislative frame-work in Mauritius.

At the institutional level, two major AML/CFTinstitutions were set up namely, IndependentCommission Against Corruption (ICAC) andFinancial Intelligence Unit (FIU). The FIU deve-loped rapidly since its inception in August, 2002and is now well equipped to supply financial intel-ligence to support investigation, prosecution andasset forfeiture.

The Mauritian AML/CFT regime was assessedin early 2003 in the context of a World Bank/IMFFinancial Sector Assessment Programme.



AML/CFT Overview

The first AML/CFT legislation, namely EconomicCrime and Anti-Money Laundering Bill was intro-duced in Parliament in June, 2000. This legislationcriminalised money laundering for the first time andmade provisions for the setting up of the EconomicCrime Office which received suspicious transactionsreports and investigated money laundering as wellas corruption offences.

In early 2002, the legislative framework wasrevamped following the enactment of the Preventionof Corruption Act, Prevention of Terrorism Act andthe Financial Intelligence and Anti-MoneyLaundering Act. The Mauritian FIU was establishedunder Part III (Section 9 to 13) of the FinancialIntelligence and Anti-Money Laundering Act, 2002which was proclaimed on 10th June, 2002. The legis-lation also provides for offences of money laundering,reporting of suspicious transactions and exchange ofinformation and mutual assistance in relation tomoney laundering. The Prevention of Terrorism Actprovides for measures to combat terrorism while thePrevention of Corruption Act provides for the preven-tion and punishment of corruption and fraud andfor the establishment of the Independent Com-mission Against Corruption.

In the second half of 2003 the legal frameworkwas strengthened further following recommenda-tions made by the IMF/World Bank as part of avoluntary Financial Sector Assessment Programme.Certain provisions of the existing legislation werefine-tuned and ambiguities were cleared. Re-gulations issued in June 2003 by the Minister underthe Financial Intelligence Anti-Money LaunderingAct, 2002 provide for clear, comprehensive andmandatory customer identification applicable to allfinancial institutions and the appointment of MoneyLaundering Reporting Officers (MLROs) by the latter.The Anti-Money Laundering (Miscellaneous Pro-visions) Act provides for amendments to the

Financial Intelligence and Anti-Money LaunderingAct, 2002, the Banking Act 1988 and the FinancialServices Development Act, 2001 to allow the disclosureof information to FIU and eliminate impedimentsto the prompt passing of information by supervisoryauthorities to the FIU. It also sets up a NationalCommittee for Anti-Money Laundering and Com-bating Financing of Terrorism to ensure co-ordinationin law enforcement efforts and policy making. In thelater half of 2003, two other major pieces of legisla-tion were proclaimed after enactment, namely theMutual Assistance in Criminal and Related MattersAct which focuses on international co-operation ininvestigations, prosecutions on proceedings concern-ing serious offences and the Convention for theSuppression of the Financing of Terrorism Act whichenforces the U.N. International Convention for theSuppression of the Financing of Terrorism.

As regards international conventions, Mauritiusratified the UN Convention Against TransnationalOrganised Crime (Palermo Convention) on 18thApril, 2003. More recently, i.e on 14th December, 2004we ratified the International Convention for theSuppression of the Financing of Terrorism and theUN Convention Against Corruption (Merida Con-vention) which came into force on 14th December,2005.

Amendments were made to the Prevention ofCorruption Act, 2002, in September, 2005. The mainobjects of these amendments are to abolish theappointment Committee of ICAC, provide for theappointment of Director-General of ICAC by thePrime Minister after consultation with the Leader ofOpposition, the setting up of a Board of ICAC to bechaired by the Director General for the purpose ofmanaging and administering the ICAC and to abo-lish the existing three Advisory Committees with aview to streamline and simplify the decision makingprocess of the Commission.

BOX 1

AML/CFT Legislative Framework in Mauritius



AML/CFT Overview

Amendments were subsequently made to thelegislation as reflected in the Anti-MoneyLaundering (Miscellaneous) Provisions Act of2003. A number of legal ambiguities were removedand functions of the FIU were restricted to receiv-ing, analysing and disseminating reports or finan-cial disclosures following the submission ofSuspicious Transactions Reports. The main non-core functions remain issue of guidelines forMoney Laundering Reporting Officers and parti-cipation in policy making through the newNational Committee on AML/CFT.

Currently, the National Committee onAML/CFT is analysing inputs from AML/CFTstakeholders with a view to develop a nationalstrategy. A national AML/CFT Strategy postulatesthe goals of the Government and defines actionto take so that the public is aware of what is beingdone to protect them against the harmful effectsof money laundering and terrorist financing. It isabout what to do, how to do it and what resourcesyou need to do it. In AML/CFT, any strategic exer-cise will touch on areas such as legislation, super-vision, FIU, public awareness, extent of under-ground economy and even training of the judi-ciary. A clear AML/CFT strategy is therefore crucialfor technical assistance, if required, for ourAML/CFT projects and it will assist genuineinvestors risk assessment prior to bringing capitalresources to Mauritius. International investorsfrom certain countries always look for informa-tion on AML/CFT frameworks or strategies priorto investment.

In the context of the development of nationalAML/CFT strategy, the FIU has studied its speci-fic challenges and came up with a road map forits future action. In the short-term, the FIUconsiders it crucial to fill significant gaps in money

laundering control and reporting. The urgency ofthis action may be revealed by a National SurveyReport of the FIU expected in April, 2006. Based onthis report, we may have to extend the list ofreporting institutions to include real estate agentsand dealers in precious metals and stones as wellas requiring reports of large transactions and cashor currency to be sent to the FIU for analysis.

In the medium-run, the FIU will review andconsolidate its capacity to improve its operationalefficiency in respect of data storage, retrieval ofdata and analytical expertise. Special attentionwill also be paid to training and retaining of staffwho have acquired the rare skills and work cultureof an FIU. Furthermore, while confidence existsnow between the FIU and the reporting institu-tions, the FIU will make special efforts to strength-en the partnership through specialised seminarsand other training programmes.

The long-run strategy of the FIU will depend toa large extent on the demand for its intelligenceproducts from other AML/CFT institutions andtheir feedbacks. Essentially, the strategy will looktowards an enhancement of our preventive rolethrough the preparation of strategic reports, effec-tive use of the FIU website for deterrence andbetter national AML/CFT awareness. Additionally,the FIU will continue to play a lead role in regio-nal and international AML/CFT initiatives.

In a nutshell, a successful strategy for the FIUaims at increasing its input, i.e. the number ofSTRs, information on cash movements and largetransactions or other developments that help todetect and analyse financial crimes, building thenecessary human and IT capabilities for its ope-rations and responding effectively to the demandfor its output i.e. dissemination reports and other



AML/CFT Overview

requests for support from domestic law enforce-ment bodies, regulators and overseas FIUs.

However, developing strategies for specificAML/CFT stakeholders within an agreed nationalstrategy cannot ignore that the combat againstmoney laundering and terrorist financing isendless. Techniques are fast evolving, reflecting

the innovative and sophisticated approaches ofthe perpetuators of financial crimes. They alwaystend to remain one step ahead using latest tech-niques or exploit legal ambiguities and advancesin financial technology. A continuing alertness tothe new risks is crucial in national AML/CFT stra-tegy building.

Cash Couriers

In February, 2005 the FATF highlighted the use ofcash couriers in terrorist financing and address the issuethrough a new recommendation, namely Recom-mendation IX and its interpretative note. The objectiveis to prevent terrorists and other criminals from usingcash couriers to finance their activities or launder theirfunds.

Based on reports from intelligence and enforcementagencies it is now evident that cash smuggling is a majormethod used by terrorist financiers, money launderersand perpetuators of organised crime to move money insupport of their activities.FATF typologies exercises havealso repeatedly highlighted the key role that cash couriersplay in money laundering operations. In recent years,evidence has emerged that cash couriers also play asignificant role in the financing of terrorism.

Couriers use a variety of methods to smuggle cash,however a preferred method is the use of commercialairlines because the passenger (courier) can stay close tohis money during transport and he can quickly reach manyforeign destinations while the whole endeavour requireslittle pre-planning. Land border crossings are also usedbecause the courier can conceal the currency in his vehicle.

Countries should have measures in place to detect thephysical cross-border transportation of currency andbearer negotiable instruments, including a declarationsystem or other disclosure obligation.

Countries should ensure that their competentauthorities have the legal authority to stop or restraincurrency or bearer negotiable instruments that aresuspected to be related to terrorist financing or moneylaundering, or that are falsely declared or disclosed.

Countries should ensure that effective, proportio-nate,and dissuasive sanctions are available to deal withpersons who make false declaration(s) or disclosure(s).In cases where the currency or bearer negotiable instru-ments are related to terrorist financing or money laun-dering,countries should also adopt measures,includinglegislative ones consistent with Recommendation 3 andSpecial Recommendation III, which would enable theconfiscation of such currency or instruments.

The authorities are currently studying the modusoperandi for implementation of Recommendation IXdealing with cash couriers and appropriate measureswill be introduced.

BOX 2

FATF SPECIAL RECOMMENDATION IX : CASH COURIERS


Supporting Domestic AML/CFT Efforts

The crucial role of the FIU in determining thereasonableness of suspicious money launderingactivities and reporting them to law enforcementbodies or regulators is now well understood.However, the number of suspicious transactionsactivities report from reporting institutions didnot increase as compared with the previous year.While this trend may reflect the deterrence ele-ment in the AML/CFT regime in place, it may alsohide other disturbing factors including weak-nesses of AML/CFT supervisory frameworks orshift of activities from the formal reporting insti-tutions to non-reporting institution and theunderground economy. On the other hand, theFIU has enhanced its preventive role in 2005through the preparation of a strategic reportbased on past suspicious transaction reports andpresenting the main results to bankers. It alsoprompted action to formulate a comprehensiveNational AML/CFT strategy so that each stake-holder identifies its challenges and developresults-based strategy to address them. Sen-

sitisation on national AML/CFT will enlightenthe public on what is being done by Governmentto prevent and combat financial crimes.

National AML/CFT Results

Suspicious Transactions Reporting &Disseminations

The evolution of the STRs received by theFIU is shown in chart 1. From a peak of 157 in2003, the number of STRs dropped to 89 in2005. The FIU has also received a number ofanonymous letters containing valuable infor-mation for certain case disclosures or enrich-ment of our databases.

More than half of STRs in 2005 came fromcommercial banks as shown in chart 2. TheOffshore Management Companies account for20% of the STRs while 15% came from investi-gatory and supervisory bodies.


Chart 1




In 2005, the FIU made 102 disseminationsmostly to law enforcement agencies such asICAC and the Police and regulators such asFSC and Bank of Mauritius. These dissemina-tions, in the form of case disclosures, analyti-cal reports, updates of cases already disclosedand further local / foreign intelligence, aremeant to expedite the work of investigatorybodies and prosecution. The amendment ofPrevention of Corruption Act in October, 2005may bring a positive shift in the utilisation ofthe output of the FIU i.e. the disseminationand other intelligence reports. It is alsoimportant to note that since its inception theFIU has not disseminated 88 cases on groundof unreasonable suspicion.

As mentioned earlier, international ex-change of information is a crucial factor indetection and investigation of financialcrimes. The very purpose of the Egmont Groupis to achieve this objective of rapid andsecured exchange of information betweenFIUs. In 2005, the FIU received 13 requests forinformation from 11 different overseas FIUsand made 65 requests for information from 21different overseas FIUs.

National Committee on AML/CFT

In recognition of vital importance ofdomestic co-operation and co-ordination, aNational Committee on AML/CFT was set upfollowing amendments made in 2003 to theFinancial Intelligence and Anti-MoneyLaundering Act in 2003. Two major achieve-ments of the National Committee onAML/CFT include support to the FIU for its2nd Annual Seminar held in September, 2004on the theme of “Addressing the Risks of MoneyLaundering and Terrorist Financing” and thehosting of the 4th meeting of Council ofMinisters’ and 8th Task Force of SeniorOfficials meeting of the Eastern and SourthernAfrica Anti-Money Laundering Group(ESAAMLG) in August, 2004 in Mauritius. In2005, the National Committee on AML/CFTstarted work on amendments to AML/CFT le-gislation to reflect new developments and thedevelopment of National AML/CFT strategy.Please see Box 3.

Information TechnologyInfrastructure and Support

In 2005, the FIU consolidated further its ITstructure and support which drive its core func-tions.

The processes of receiving, requesting,analysing and disseminating financial informa-tion are so intricately linked to each other thattheir evaluation and monitoring are conductedthrough an effective internal control software.The software has been conceptualised by theHead of the Technical Department, blendingInformation Technology with document ma-nagement and investigative analysis.

Chart 2


The development and implementation of thisIntegrated Business System (IBS) was done over aperiod of two years and is gradually phasing outthe ‘old’ manual system and procedures. The IBShas built-in security mechanism to prevent usersfrom unwittingly having access to sensitive data.

The IBS is coupled with a system which wecalled Text Retrieval System (TRS). The TRSensures that all information gathered withrespect to suspicious transactions are collated,graded, processed and stored securely. The TRShelps in tracking down movements of do-cuments and extracting the informationthrough a search engine to build up profiles ofsubjects mentioned in the suspicious transac-tion reports (STRs). So far, it has proved to be avaluable tool for data extraction, data integra-tion and information tracking. One of the otherkey features of the TRS includes a document andcase management system. The TRS is effective-ly managed by a team of Research IntelligenceOfficers (RIOs) and they assist the FinancialIntelligence Analysts by providing informationon a need to know basis, ensuring that unautho-rised users cannot access restricted data. Thesearch and profiling modules of the TRS helpthe RIOs to draw a full and comprehensive intel-ligence picture by picking information availablefrom all the in-house databases.

The implementation of the IBS triggered abusiness process reengineering phase and as aresult an Online Suspicious Transaction ReportingSystem (OSS) was developed and implemented.To gain the trust of the reporting institutions toreport suspicious transactions over our websiteand submitting sensitive information over theinternet, the FIU had recourse to the TransportLayer Security commonly called as the Secured

Socket Layer (SSL). This technology is known forits powerful encryption capabilities and we arehoping it would boost reporting institutions’ con-fidence to adopt OSS as their medium of report-ing STRs to the FIU.

Human Resources Capacity

Analytical and IT expertise are critical for theoperations of the FIU. Please see Annex II forthe organisation chart of the FIU.

There is a scarcity of technical skills whichcombine accounting, finance and legal exper-tise. The FIU therefore pursued a policy ofrecruiting to retain and introduced an attrac-tive pay package for its staff since 2003. Boardalso approved a recruitment policy aimed atidentifying potentials of applicants and offer-ing them intensive in-house training or re-cruiting them in a trainee capacity in the firstinstance. Where possible, staff were givenopportunities for overseas training and expo-sure. The work culture of the FIU is verydemanding and special efforts are needed toattract quality staff.

AML/CFT National Awarenessand Training

The AML/CFT framework of Mauritius placesthe FIU in a unique central position because onlycases where the suspicion is reasonable arereported for investigation and prosecution. Inthis way, the FIU protects innocent clients offinancial institutions and develops trust and con-fidence between reporting institutions and theFIU. However, the AML/CFT framework itself isnot well understood which led the FIU to engagein training and public awareness campaigns. The






FIU website now contains an FAQ section for thepublic and financial institutions.

In March 2005, the FIU organised a specialworkshop for bankers at the LabourdonnaisHotel to sensitise them on Suspicious Tran-sactions Reporting Mechanism and Trends andPatterns based on Suspicious TransactionsReports. Case Studies were also presented. Theworkshop, led by the technical staff of the FIU,was attended by 35 bankers including theChairman and the Chief Executive Officer of theMauritius Bankers’ Association and four seniorstaff of the Bank of Mauritius.

The Director of the FIU also participated inan awareness creation exercise for the MauritiusCivil Service Mutual Aid Association and made apresentation on AML/CFT at its ComplianceWorkshop held on 26th February, 2005. He alsomade an address on the theme of “Customs andCommercial Fraud” on the International Cus-toms Day held on 26th January, 2005 at the TaxTraining School of the Customs Department.

The objectives of the National Committee are (a) assessthe effectiveness of policies and measures to combat moneylaundering and the financing of terrorism; (b) makerecommendations to the Minister for legislative,regulatoryand policy reforms in respect of anti-money laundering andcombating the financing of terrorism;(c) promote co-ordi-nation among the FIU, investigatory authorities, super-visory authorities and other institutions with a view toimproving the effectiveness of existing policies to combatmoney laundering and the financing of terrorism; (d)formulate policies to protect the international reputationof Mauritius with regard to anti-money laundering andcombating the financing of terrorism;(e) generally advisethe Minister in relation to such matters relating to anti-money laundering and combating the financing of terro-rism,as the Minister may refer to the National Committee.

Membership of National Committee on AML/CFTThe Supervising Officer of the Ministry responsible forfinancial services (Chairperson)A representative of the Prime Minister’s Office;A representative of the Attorney-General’s Office;A representative of the Ministry responsible for finance;A representative of the Ministry responsible for financialservices ;A representative of the Ministry responsible for foreignaffairs;Commissioner of Police or his representative;Comptroller of Customs or his representative;Director of the FIU or his representative;Managing Director of the Bank of Mauritius or his repre-sentative;Chief Executive of the Financial Services Commission orhis representative;Commissioner appointed under section 45(8) of theDangerous Drugs Act or his representative;Commissioner appointed under section 19 of thePrevention of Corruption Act 2002 or his representative.

BOX 3

National Committee on AML/CFT

The National Committee may co-opt such other persons asappear to it to have special knowledge or experience in anti-money laundering or combating the financing of terrorism


Supporting Regional AML/CFT Efforts




There exist a number of vulnerabilities andconcerns which are best addressed throughregional co-operation. This is recognised by theFATF which encourages FATF-Style RegionalBodies (FSRBs). Mauritius is a founder memberof the Eastern and Southern Africa Anti-MoneyLaundering Group (ESAAMLG) since its incep-tion in 1999 and participates actively in itsoperations including mutual evaluation anddevelopment of AML/CFT frameworks in itsmember countries.

The Director of the FIU chaired the 9thmeeting of ESAAMLG Task Force of SeniorOfficials held in Arusha, Tanzania on 14-17March, 2005. He also chaired part of the TaskForce of Senior Officials meeting held inLivingstone in August, 2005 and attended the5th meeting of the Council of Ministers on 25th

August, 2005 as representative of the Minister ofFinance and Economic Development. He alsoattended a special meeting of the Council ofMinisters held on 6th October, 2005 inSwaziland.

In early January, 2005, the Director partici-pated in an IMF Technical Assistance missionto Malawi and was a resource person for thefirst Egmont Training Seminar for FIUs orga-nised jointly by the Egmont Group, ESAAMLG,UNODC and the Financial Intelligence Centreof South Africa.

The Assistant Director was an activeresource person involved in the preparation ofan AML/CFT Strategy Plan for 12 ESAAMLGmembers. In this context, he was involvedtogether with the Commonwealth Secretariat in


�� 5th Council of Ministers meeting chaired by Mr. Bagande, Minister of Finance and EconomicDevelopment of Zambia (Livingstone, Zambia- 22-25 August, 2005)



��Participants at the Egmont/ UNGPML/GIABA Training Seminar for new FIUs (Senegal - 28-30 Nov 05)

running AML/CFT Strategy Development Sub-Regional Workshops in Arusha, Tanzania duringthe period 16-19 May, 2005 and in Namibiafrom 7-11 August, 2005. He also attended themeetings of ESAAMLG Task Force of SeniorOfficials and Council of Ministers held inLivingstone to present and discuss theESAAMLG Three-year Strategic Plan (2005-2008). The plan was produced against the back-drop of a need to speed up implementation ofAML/CFT standards as set up in the FATF’s 40+9Recommendations. The strategy is based on adetailed analysis of the main issues in theregion including strengths, weaknesses and themain challenges. The plan sets out the strategicoutcomes in a mission statement for ESAAMLG

as an FATF-Style regional body, seven keystrategic objectives, expected results and thestrategy needed to achieve results. The imple-mentation of the strategic plan was approvedby the Council of Ministers of ESAAMLG at itslast annual meeting in August, 2005.

At the bi-lateral level, the Mauritius FIU hasalso assisted ESAAMLG members by hosting afamiliarisation tour for two officials of the BankUse Promotion and Suppression of MoneyLaundering Unit of the Central Bank ofZimbabwe from 21 to 25 February, 2005. TheAML unit of the Reserve Bank of Zimbabwe isnow seeking an MOU with the FIU and requested our co-sponsorship with Financial





Intelligence Centre of South Africa for itsadmission to the Egmont Group. We have alsobeen approached by Mozambique to partici-pate in a sensitisation workshop for AML/CFTstakeholders prior to the establishment of theFIU.

The contribution of the FIU to AML/CFTdevelopment in Africa extended beyondESAAMLG member countries. In this context,the Director participated as a UNODC resourceperson in national seminar on “Capacity-Building and Countering Money Launderingand Terrorist Financing” held in Gambia from

15th to 17th June, 2005. He also participated asan UNODC resource person for a TrainingSeminar organised jointly by the EgmontGroup, UNODC and Groupe Inter-Gouvern-mental d’Action Contre le Blanchiment enAfrique (GIABA) where he made presentationson “Establishment of a Financial IntelligenceUnit” and “The Egmont Environment”. Mauri-tius has also been approached by the NigerianFIU as its co-sponsor for admission to theEgmont Group of FIUs while the newly estab-lished FIU of Senegal, CENTIF, wishes to havecloser working relationships with us and learnfrom our experience.


Supporting GlobalAML/CFT Efforts




Continuing improvements in communica-tion, ease of travel and advances in financialtechnology provide money launderers withgolden opportunities to move their ill-gottenfunds globally thus distancing them from theplaces where the predicate offences were com-mitted. As discussed in the overview section ofthis report, it is now fully recognised andaccepted that individual countries on their owncannot address all the challenges posed bymoney laundering and terrorist financing. TheMauritius FIU contributes to global AML/CFTefforts mainly through its deep involvement inthe activities of the Egmont Group.

Egmont Group

The Mauritius FIU became a member of theEgmont Group in July 2003 on the basis of itscomprehensive legislative framework, commit-ted resources for FIU development and a veryfavourable operational status review by itssponsor, namely FINCEN of the United States.As mentioned earlier, the Mauritius FIU iscalled upon to assist in FIU development in the

region and provide resource persons for jointtraining seminars of Egmont. In particular, theMauritius FIU participates actively in theOutreach Working Group because of its statusof Regional Representative of Africa on theEgmont Committee, a Steering Committee ofthe Egmont Group. In June, 2005, the MauritiusFIU was re-elected as regional representative inAfrica for two years.

The benefits of membership of the EgmontGroup are significant and, in any case, it is nowan FATF requirement that all countries shouldestablish FIUs which should subsequently joinEgmont. At the operational level, exchange ofinformation among Egmont members is carriedthrough a secured website (Egmont Secure Web)and new members benefit from the experienceof older established FIUs. Members also partici-pate in activities of the Working Groups such asthe Training Group, Operational Working Group,Legal Working Group, IT-Working Group andOutreach Working Group which give them theopportunity to share experience and keepabreast with latest developments.

Supporting Global AML/CFT Efforts

��Participants at the Egmont Group Plenary and Heads of FIUs Meeting (Washington – 26 June – 01 July 05)


The EG celebrated its 10th year anniversaryin June, 2005 as its membership attained thefigure of 101. However, the Egmont Group nowfaces a number of challenges and importantdecisions are expected at its next plenary meet-ing in Cyprus in June 2006. With the largeexpansion in membership in recent years andthe anticipated increase in future, the Heads ofFIUs agreed to formalise the organisationstructure at the last plenary in Washington in

June, 2005. A Transition Working Group was setup for that purpose. While its informal struc-ture has been effective in the past, it may nolonger be sustainable in future in terms ofboth administrative support and funding. It isalso important for new members to remaincompliant with the Egmont definition and playthe role expected from them in the global com-bat against money laundering and terroristfinancing.


The setting up of the Egmont Group derived from a

growing need to work together to combat transnation-

al crime and terrorism through systems that allows for

rapid exchange of appropriate intelligence. The first

meeting was therefore a forum for specialized agencies

to increase their understanding of FIUs and find prac-

tical solutions for exchanging financial information

as well as sharing views in which FIUs can support

national anti-money laundering programs. On its 10th

year anniversary in June, 2005, the Group has success-

fully expanded and systematized the exchange of finan-

cial intelligence and fostered communication as well

operational cooperation among its members. It has also

contributed to the sharing of experiences and ideas on

FIU operations thus promoting the establishment of

FIUs worldwide. Other achievements include the

Egmont Definition of FIU and the procedures for recog-

nizing FIUs. It has also developed a secure website for

exchange of information among its members and

contributed to the recognition of the importance of FIUs

within national AML/CFT programs. Membership also

allows compliance with Recommendation 26 of the

FATF 40 Recommendations.

The requirements and procedures for admission to the

Egmont Group are now well-established and recog-

nized. Besides meeting the functions encapsulated in

the Egmont definition of an FIU, legislation must be in

place in the applicant’s jurisdiction with provisions for

the formal establishment of an FIU and exchange of

information with other FIUs.Secondly, the FIU must be

operational with dedicated resources and be sponsored

by one or two Egmont members. In the initial stage, the

Outreach Working Group works with FIUs that may be

ready for Egmont membership, assigns sponsor or co-

sponsors and, after an operational status visit, it

provides the Egmont membership questionnaire. This

duly completed questionnaire and other additional

information that may be requested are subsequently

analyzed by Legal Working Group which decides on

whether to endorse the application for approval by the

Heads of FIUs at its annual plenary meeting.

In the African region, only three FIus are members of

Egmont Group,namely those of Mauritius, the Republic

of South Africa and Egypt. Please see Appendix VI for

a list of the 101 Egmont members.

BOX 4

Egmont Group of FIUs




Sponsoring Admission of newFIUs to the Egmont Group

The Mauritius FIU showed tremendousinterest in sponsoring the admission of theIndian FIU (FIU-IND) which was set up in June,2005. Although Liechtenstein initiated theprocess prior to our admission to the EgmontGroup, the Mauritius FIU is now playing a leadrole because of our strong economic and cul-tural ties with India. Furthermore, sharing ourexperience in FIU operations and developingclose working relationships with AML/CFTinstitutions in India is a reflection of Go-vernment will to ensure transparent economicco-operation between our two countries.

In early 2005, Mr. Rakesh Singh, JointSecretary (Revenue), Ministry of Finance, Go-vernment of India, visited the Mauritius FIUand established the initial contacts. The IndianHigh Commission in Mauritius has also beenpro-active and, following the appointment of aDirector at FIU-IND on 15th March, 2005 muchprogress has been realised. By end 2005, FIU-IND has progressed rapidly in recruitment,office space and will be receiving suspicioustransaction reports shortly. FIU-IND is nowready for an operational status visit and,depending on the report by the sponsors, theadmission may be recommended to the LegalGroup for consideration by the Heads of FIUsmeeting in their plenary session in June, 2006 inCyprus. Mauritius has also been approached tosponsor the admission of the FIU of Zimbabwein Egmont jointly with the Financial Intel-ligence Centre of the Republic of South Africa.Request for the Mauritius FIU to sponsoradmission to Egmont has also come from theNigerian FIU, the Senegal, the FIU of Niger -

Cellule Nationale de Traitement des Informa-tions Financières (CENTIF).

Bilateral Memoranda ofUnderstanding

Although legislation in Mauritius providesfor exchange of information with other FIUs,certain countries, on their part, still require aspecial MOU before providing information.This applies particularly to Australia andCanada. Mauritius signed an MOU withAustralia FIU, Australian Transaction Reportand Analysis Centre (AUSTRAC) in October,2003 and has reached an advanced stage in itsnegotiations with Financial Transactions Re-ports and Analysis Centre (FINTRAC ofCanada).

MOUs also exist between the Mauritius FIUand those in Republic of South Africa,Thailand, Monaco and last one with Belgiumwhich was signed on 14th November, 2005.Negotiations are under way with the FIUs ofRussia, Cayman Islands, Liechtenstein, Jersey,Guernsey and the National Criminal andIntelligence Service (NCIS) of the UnitedKingdom. Besides their operational usefulness,MOUs enhance our contribution to the globalfight against money laundering and establishspecial working relationships including place-ment opportunities for our staff and joint workon regional typologies.




Action Plan for 2006

Our main priority in 2006 remains the deliveryof timely and high quality financial intelligence tolaw enforcement bodies and regulators. Follo-wing the recent revision to the Prevention ofCorruption Act, it is expected that demand foroutput of the FIU will increase significantly as theyear progresses. The FIU stands ready to meetthis challenge and fulfil its core functions.

As regards its non-core functions, the FIU willenhance its preventive role in awareness-creation.In this context, the Board of the FIU has given itsconsent for the conduct of a national survey onmoney laundering and terrorist financing to assessthe extent, risks and trends of money launderingand terrorist financing in Mauritius. The survey isscheduled for early 2006 and its methodology andresults will be presented toward mid-April 2006during the FIU third National Seminar on“Working Together to Fight Money Laundering andTerrorist Financing”. Besides assisting the FIU tocarry out its functions more effectively, the resultsof the survey will also assist supervisory and inves-tigatory bodies to better protect the financial sec-tor from abuse by unscrupulous money launde-rers and financers of terrorism. Additionally, the

FIU will fill the training gaps identified in theNational Survey by organising revelant workshopsfor reporting and other institutions. A strongerpublic awareness campaign is also planned if thesurvey reveals inadequate knowledge of AML/CFTefforts by the population. The FIU believes thatknowledge and alertness to money launderingand terrorist financing issues is in itself a strongdeterrent that reinforces Government’s commit-ment to AML/CFT.

The FIU is also looking forward to contribut-ing to the formulation of a realistic nationalAML/CFT strategy by the National Committee onAML/CFT. The final strategy will of course,depend on proposals of all AML/CFT stakehold-ers and the consensus to be reached at the level ofthe National Committee on AML/CFT.

During 2006, the FIU will also respond torequests for assistance in the development ofAML/CFT frameworks including establishmentof FIUs in the African region. This will includecloser working relationships with the ESAAMLGSecretariat, participation in mutual evaluationand capacity building exercises as well as assis-ting under the auspices of international organisa-tions such as United Nations Office on Drugs andCrime (UNODC), IMF and World Bank. We shallalso assist in the typologies exercise of theESAAMLG and the implementation of its 3-yearStrategic Plan.

At the international level, the FIU will developcloser working relationships with new FIUs andassist in their admission to the Egmont Group. Inparticular, an operational status visit is plannedfor the Indian-FIU (FIU-IND) with a view ofsponsoring its admission in the Egmont at itsnext Plenary in June, 2006 in Cyprus.

��Assistant Director of FIU and Head of Survey Teambriefing staff and stewards


Financial Intelligence Unit

Auditors Report & Financial Statements


I have audited the accompanying balance sheet of the Financial Intelligence Unit as of 30 June 2005and the related statements of income and expenditure and cash flows for the year ended 30 June2005. These financial statements are the responsibility of the Board. My responsibility is to expressan opinion on these financial statements based on my audit.

I conducted my audit in accordance with International Standards on Auditing. Those Standardsrequire that I plan and perform the audit to obtain reasonable assurance about whether the finan-cial statements are free of material misstatement. An audit includes examining, on a test basis, evi-dence supporting the amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made by management, as wellas evaluating the overall financial statement presentation. I believe that my audit provides a rea-sonable basis for my opinion.

Audit Opinion

In my opinion, the financial statements give a true and fair view of the state of affairs of theFinancial Intelligence Unit as of 30 June 2005, and of its income and expenditure and cash flows forthe year ended 30 June 2005.

(R. JUGURNATH)Director of Audit

National Audit OfficeLevel 14, Air Mauritius CentrePORT LOUIS17 January 2006


REPORT OF THE DIRECTOR OF AUDIT

TO THE CHAIRPERSON OF THE FINANCIAL INTELLIGENCE UNIT



The Board of the Financial Intelligence Unit (FIU) presents its third report and the auditedfinancial statements of the Organisation for the year ended 30 June 2005.

Review of ActivitiesThe FIU was established under Section 9 of the Financial Intelligence and Anti-Money

Laundering Act 2002. The FIU is the central agency in Mauritius responsible for receiving, request-ing, analysing and disseminating to the investigatory and supervisory authorities disclosures offinancial information concerning suspected proceeds of crime and alleged money launderingoffences and the financing of any activities or transactions related to terrorism.

Statement of the Board’s Responsibilities in Respect of the Financial StatementsThe Board of the FIU is responsible for the preparation of the financial statements for each

financial year, which gives a true and fair view of the state of affairs and income and expenditureaccount of the organisation.

In preparing those financial statements, the Board is required to:• select suitable accounting policies and then apply them consistently;• make judgements and estimates that are reasonable and prudent;• state whether applicable accounting standards have been followed, subject to any material

departures and explained in the financial statements; and• prepare the financial statements on the going concern basis unless it is inappropriate to presume

that the organisation will continue in business.

The Board confirms that they have complied with the above requirements in preparing thefinancial statements.

The Board is responsible for the accounting records, which disclose with reasonable accuracy atany time the financial position of the organisation. They are also responsible for safeguarding theassets of the organisation and hence for taking reasonable steps for the prevention and detectionof fraud and other irregularities.

Signed on their behalf

L. C. L. K. S. Sam Soon S. D. BikooChairman Director


Board’s Report For the Year Ended 30 June 2005




Balance Sheet as at 30 June 2005

NOTES 2005 2004Rs Rs

ASSETS

Non Current AssetsProperty, plant and equipment 3 5,006,614 5,875,396

Current AssetsAccounts receivables 4 949,512 600,050Cash and cash equivalents 5 2,166,230 94,384

3,115,742 694,434Total Assets 8,122,356 6,569,830

FUNDS AND LIABILITIES

Funds and ReserveCapital Grant 6 4,495,508 5,089,298Accumulated surplus / (deficit) 1,909,054 (478,639)

6,404,562 4,610,659Current Liabilities falling due within one yearAccounts payable 7 1,717,794 1,959,171

Total Net Funds and Liabilities 8,122,356 6,569,830

The financial statements were approved by the Board on 15th December, 2005

L.C.L.K.S Sam Soon S.D.BikooChairman Director

The accounting policies and the notes to the accounts form an integral part of these financial statements.




Income and Expenditure AccountFor the Year Ended 30 June 2005


INCOME

Government Grant 8 20,593,790 13,954,10820,593,790 13,954,108

EXPENDITURE

Salaries and allowances 9 11,420,947 7,627,956Training and seminars 10 783,582 1,422,596Office and administrative expenses 12 3,470,619 3,374,723Depreciation and amortisation 3 3,031,715 1,966,104

Total operating expenses 18,706,863 14,391,379

GROSS SURPLUS / (DEFICIT) FOR THE YEAR 1,886,927 (437,271)

OTHER INCOME:Net Income generated from Seminar / Workshop 11 500,766 -

NET SURPLUS / (DEFICIT) FOR THE YEAR 2,387,693 (437,271)

The Income and Expenditure account has been prepared on the basis that all operations are con-tinuing.

The accounting policies and the notes to the accounts form an integral part of these financial state-ments.




Statement of Changes in FundsFor the Year Ended 30 June 2005

Capital Deferred Accumulated TotalGrant Capital (deficit)/

Grant surplusRs Rs Rs Rs

At 1 July, 2003 6,000,000 (706,594) (41,368) 5,252,038

Capital grant received during 1,600,000 - - 1,600,000the yearDeferred grant for the year - (1,804,108) - (1,804,108)Deficit for the year - - (437,271) (437,271)

At 30 June, 2004 7,600,000 (2,510,702) (478,639) 4,610,659

Grant used for capital 2,162,932 - - 2,162,932expenditure during the yearDeferred grant for the year - (2,756,722) - (2,756,722)Surplus for the year - - 2,387,693 2,387,693

At 30 June, 2005 9,762,932 (5,267,424) 1,909,054 6,404,562

The accounting policies and the notes to the accounts form an integral part of these financialstatements.




Cash Flow StatementFor The Year Ended 30 June 2005


Surplus / (Deficit) for the year 2,387,693 (437,271)Grant used for capital expenditure/Capital Grant received 2,162,932 1,600,000

Adjustments for:Depreciation and Amortisation for the year 3,031,715 1,966,104Deferred capital grant for the year (2,756,722) (1,804,108)Cash flow from operating activities, before working 4,825,618 1,324,725capital changesIncrease in accounts receivable (349,462) (339,071)(Decrease)/Increase in accounts payable (241,377) 901,260Net cash flow from operating activities 4,234,779 1,886,914

Cash flow from investing activities:Acquisition of fixed assets (2,162,932) (2,647,040)Net cash inflow/(outflow) in financing activities 2,071,846 (760,126)Net change in cash and cash equivalents 2,071,846 (760,126)Cash and cash equivalents at 1 July 94,384 854,510Cash and cash equivalents at 30 June 2,166,230 94,384

The accounting policies and the notes to the accounts form part of these financial statements.




Notes to the Financial Statements For the Year Ended 30 June 2005

1. CONSTITUTION OF THE FINANCIAL INTELLIGENCE UNIT

The Financial Intelligence Unit (FIU) was established under Section 9 of the FinancialIntelligence and Anti-Money Laundering Act, 2002. The FIU is the central agency in Mauritiusresponsible for receiving, requesting, analysing and disseminating to the investigatory andsupervisory authorities disclosures of financial information concerning suspected proceedsof crime and alleged money laundering offences and the financing of any activities or trans-actions related to terrorism.

2. ACCOUNTING POLICIES

The principal accounting policies adopted by the FIU are as follows:

2.1 BASIS OF PREPARATION

The financial statements have been prepared on accrual basis, are in accordance with the his-torical cost convention, and comply with the International Accounting Standards. The pre-sentation of the financial statements in accordance with the International AccountingStandards and generally accepted accounting principles requires the management to makeestimates and assumptions that reflect the reported amount and disclosures in the financialstatements.

Actual results could differ from those estimates.

2.2 REVENUE RECOGNITION

2.2.1 In terms of section 33(1) of the Financial Intelligence and Anti-Money Laundering Act,2002, the expenses of the FIU shall be met out of

(a) Money appropriated annually by Parliament for the purposes of the FIU; and (b) Any government grants made to it

2.2.2 Accumulated Surplus or DeficitThe FIU is allocated an annual budget by Parliament to fund its activities as defined by theFinancial Intelligence and Anti-Money Laundering Act, 2002.

2.3 INCOME

Government grants were received during the year. These have been accounted on an accru-al basis. The FIU also generated income from fees charged to participants in seminars andworkshops organised by the FIU. Interest is being earned from the FIU training accountwhich has been set up for specific training and sensitisation purposes.

2.4 EXPENDITURE

All expenses have been accounted on an accrual basis.

2.5 TANGIBLE FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at historical cost less accumulated depreciation.Depreciation is calculated either on the straight line or reducing balance methods so as to




Notes to the Financial Statements For the Year Ended 30 June 2005 (cont.)

write off the cost of each asset to their residual value over their estimate useful life. Theannual depreciation rates used and basis of depreciation are as follows:

%Computer Equipment 33 1/3 Straight LineOffice Equipment 20 Straight LineFurniture And Fittings 20 Straight LineMotor Vehicle 25 Reducing BalanceLeasehold Improvement 50 Straight Line

2.6 FIU PENSION FUND

The FIU contributes to a pension scheme which is a ‘Defined Benefit Plan’. The assets of thefund are held independently and administered by the State Insurance Company Of Mauritius(SICOM) Ltd.

The FIU was registered under the Statutory Bodies Pension Fund Act and all confirmedemployees of the FIU are covered under the Pension Scheme. The market value of the pen-sion fund as at 30th June, 2005 was Rs 1,078,182.

2.7 GOVERNMENT GRANT

All government grants received for capital expenditures are deferred over the life of the assetsand accordingly released to the Income and Expenditure account. All recurrent grants receivedfrom the Government are credited to Income and Expenditure in the same period of accounts.

2.8 CASH AND CASH EQUIVALENTS

Cash comprises cash at bank and in hand.

2.9 IMPAIRMENT

The Management of the FIU reviews the carrying amounts of the non-current assets at theend of each financial year to determine whether there is any indication that those assets havesuffered an impairment loss and the same is accounted for, if any.

2.10 CONTINGENT LIABILITIES/COMMITMENTS

Transactions are classified as contingencies where the obligations depend on uncertainfuture events. Items are classified as commitments where the FIU commits itself to futuretransactions.

The FIU Leases office accommodation at 2nd and 3rd Floor Travel House, Cnr Sir WilliamNewton & Royal Streets Port Louis. The Lease for the second and third floor expires inNovember 2006 respectively and the rental payable from 1 July 2005 up to the date of expiryamounts to Rs 2,171,440.





3. FIXED ASSETS

Computer Office Furniture Motor Leasehold TotalEquipment Equipment & Fittings Vehicle Improvement

Rs Rs Rs Rs Rs Rs

COSTAt I July 2004 4,423,021 660,098 730,151 2,546,710 188,115 8,548,095Additions 2,050,326 59,752 52,854 - - 2,162,932

At 30 June 2005 6,473,347 719,850 783,005 2,546,710 188,115 10,711,027

DEPRECIATIONAt 1 July 2004 1,689,752 155,108 166,729 532,026 129,083 2,672,698Charge for the year 2,151,814 138,228 152,204 530,445 59,024 3,031,715

At 30 June 2005 3,841,566 293,336 318,933 1,062,471 188,107 5,704,413

NET BOOK VALUEAs at June 2005 2,631,781 426,514 464,072 1,484,239 8 5,006,614

As at June 2004 2,733,268 504,990 563,422 2,014,684 59,032 5,875,396





2005 2004Rs Rs

4. Accounts Receivables Deposit-Rent 403,600 403,600Other prepayments 545,912 196,450

949,512 600,050

5. Cash and Cash EquivalentsCash in Hand 1,128 1,804Cash at Bank 2,165,102 92,580

2,166,230 94,384

6. Capital GrantAs at 1 July 5,089,298 5,293,406Grant used for capital expenditure/Capital Grant received 2,162,932 1,600,000Less: Deferred Capital Grant for the year (2,756,722) (1,804,108)As at 30 June 4,495,508 5,089,298

7. Accounts PayableTrade creditors 581,926 1,355,453Provision for passage benefits 227,133 132,978Provision for leave refund 585,458 169,487Provision for gratuity to Officers on contract 323,277 301,253

1,717,794 1,959,171

8. Government GrantRecurrent Grant 17,837,068 12,150,000Deferred Capital Grant for the year 2,756,722 1,804,108

20,593,790 13,954,108

9. Salaries and AllowancesSalaries and Wages (Note 1) 8,993,854 5,814,107Committee Remuneration (Note 2) 910,000 824,005Contribution to NPF, NSF & Levy 161,579 171,114Contribution to FIU Pension Fund 738,122 342,919Passage Benefit 217,483 119,419Director’s gratuity 361,237 331,096Staff Welfare Development 38,672 25,296

11,420,947 7,627,956

Note 1 : This includes Director’s gross salaries and allowances for an amount of Rs1,902,248.Note 2 : Fees and allowances paid to Chairman and Members of the Board amounted to

Rs 390,000 and Rs 520,000 respectively.





2005 2004Rs Rs

10. Training and SeminarsCost incurred in respect of Local Seminars,Workshops, Training & Conferences 144,217 103,692Overseas Missions & Conferences 547,894 1,221,154Guidelines & Publications 91,471 97,750

783,582 1,422,596

11. Other IncomeReceipt from organising Seminar/Workshop 1,100,000 -Interest income 4,723 -

1,104,723 -Less : Costs incurred in organising Seminar/Workshop (603,957) -

500,766 -

12. Office and AdministrativeSubscription Fees 36,119 26,438Motor Vehicle Running Expenses 208,984 168,273Office Expenses 20,699 11,062Rent 1,915,535 1,513,687Cleaning Expenses 32,069 19,553Electricity 364,135 256,917Telephone, Fax & Internet expenses 381,904 358,962Printing, Postage and Stationery 135,038 110,528Advertisement 64,539 170,356IT Related Expenses (Note 3) 203,330 362,804Repairs & Maintenance 36,818 39,373General Expenses 4,315 10,432Bank Charges 5,473 4,001Exchange difference 1,661 2,337Professional fees 60,000 320,000

3,470,619 3,374,723

Note 3 : The figure include access fee to commercial database.


Appendix I Board Members

Appendix II Organisational Chart

Appendix III Staff List

Appendix IV Participation in Overseas Missions and Training Courses

Appendix V FIU Information Security Architecture

Appendix VI Egmont Group of FIUs

Appendices


Members of Board

Chairperson

L.C.L.K.S Sam SoonBA Hons (Law and Economics) Keele, Barrister-at-Law

Members

Gunness Ramdewar,Senior Attorney

Percy PascalFormer Risk Management Director at a

leading commercial bank

Both Board members and the Director of the FIU are appointed by the President on the recommendation of the PrimeMinister made in consultation with the Leader of the Opposition as laid down under Section 12 (2) and 9(2) of the FinancialIntelligence and Anti-Money Laundering Act, 2002 and Section 12 of the Anti-Money Laundering (Miscellaneous Provisions)Act, 2003. The current members of the Board and the Director were appointed on 16th September, 2003 and 8th August, 2002,respectively.



Appendix I



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Staff List as at 17th January, 2006

Appendix III

Director Dev BIKOOMSc (Econ) London School of Economics (UK)MPhil (Econ) University of Southampton, (UK)

Assistant Director Danny SANHYE FCCA CFE MEWI (UK)

TECHNICAL

Financial Investigative Analysis

Financial Intelligence Analysts Devanaden SOOPRAYAPATTEN ACCAMahendrasingh RAMDHARY BA (Law and Management)Yogendra APPADOO MSc Finance

Assistant Financial Intelligence Analysts Shweta-Preeya BEEHARRY - RAMYEAD BA (Law and Management), ACCAMeena RAMKAUNLLB Honours Bar-at-Law

Research Intelligence Officers Anubhav JEETUN BSc MSc (Stats)Vrishni POONET BSc MSc (Information Systems)

Field Intelligence Officers Rajesh SOMAROO BSc (Police Studies)Mohammad Sallah-ud-din SURFRAZ Diploma in Police Studies, ACCA (ongoing)Navin PADARUTHBSc Biology, MSc IT

Police Liaison Officer Désiré Toussaint Richard VEERAPAH



Staff List as at 17th January, 2006

INFORMATION TECHNOLOGY

Information Control Officer Suraj RAMRUTTUNB.Eng Computer Science & Engineering / MSc Project Management (ongoing)

IT Security Officer Leckraj NAGOWAHBSc (Hons) Computer Science & EngineeringMSc Computer Science with Specialisation inSoftware Engineering (ongoing)

IT Assistants David ARMOOGUMBSc Information Technology Enabled Services (ongoing)Andy Valéry Stéphane ELAHEEBACCUS

LEGAL

Legal Officer Poubasini Pillay VYTHELINGUM LLB Hons

CORPORATE AFFAIRS

Finance and Administrative Manager Sailendrasingh GOKHOOL BSc (Accounting) ACCA

Accounting and Administrative Assistant Rajnish RAMCHURUN BSc (Management) ACCA (ongoing)

Office Secretaries Guylaine MOOTOOYasmin ISSELJEEDiploma in Management Studies (ongoing)

Receptionist Anabelle HOMET

Driver / Attendant Kisna PERGUN

General Assistants Vikash CHIKHURI Harris MUNURUTH

Appendix III


Overseas

Mr. S.D. Bikoo, Director, participated in:(i) an IMF TA Mission in Malawi from 10th – 21st

January, 2005 (Funded by International Monetary Fund)

(ii) the 9th meeting of the Task Force of SeniorOfficials of ESAAMLG in Arusha, Tanzania from14th – 17th March, 2005

(iii) a National Seminar and capacity building oncountering money laundering and terroristfinancing in Gambia, from 15th – 17th June, 2005(Funded by UNODC)

(iv) the Egmont Group Plenary Meeting and theEgmont Committee Meetings in WashingtonDC, USA 26th June – 1st July, 2005

(v) the 10th meeting of the Task Force of SeniorOfficials of ESAAMLG and the 5th Council ofMinisters Meeting in Livingstone, Zambia from22nd – 25th August, 2005

(vi) a Search Committee Meeting and an Extraordinarymeeting of the ESAAMLG Council of Ministersfrom 5th – 6th October, 2005 in Swaziland(Funded by ESAAMLG)

(vii) ESAAMLG Search Committee Meeting from26th – 27th October, 2005 in Dar Es Salaam,Tanzania (Funded by ESAAMLG)

(viii) an Egmont / UNODC / ESAAMLG / FIC TrainingSeminar for New FIUs from 31st October – 1stNovember, 2005 in Pretoria, South Africa

(ix) an Egmont / UNGPML / GIABA TrainingSeminar for New FIUs from 28th-30thNovember, 2005 in Dakar, Senegal (Funded by UNODC)

Mr. D.S. Sanhye, Assistant Director participated in:(i) the 9th Meeting of the Task Force of Senior Officials

of ESAAMLG in Arusha, Tanzania and visit toFinancial Intelligence Centre, South Africa from14th – 16th March, 2005(Funded by ESAAMLG)

(ii) AML/CFT Strategy Development Sub-RegionalWorkshop in Arusha, Tanzania from 16th – 19thMay, 2005 (Funded by ESAAMLG)

(iii) an AML/CFT Workshop in Namibia from 7th – 11thAugust, 2005(Funded by ESAAMLG)

(iv) Meeting of the Task Force of Senior Officials ofESAAMLG in Livingstone, Zambia from 22nd –24th August, 2005 (Funded by ESAAMLG)

(v) 23rd Annual Symposium by the University ofCambridge in Cambridge from 4th – 10thSeptember, 2005 (Funded by FIU)

(vi) Awareness Raising Training Seminar onCountering Money Laundering and Financing ofTerrorism in Addis Ababa, Ethiopia from 20th –22nd September, 2005 (Funded by UNODC)

(vii) Interpol / UNODC Training Workshop on FinancialCrime and AML/CFT in Nairobi, Kenya from 27th–29th November, 2005(Funded by UNODC)

Mr.Y. Appadoo, Financial Intelligence Analyst attendeda course on International Law Enforcement Agency inGaborone, Botswana from 28th March to 1st April, 2005 (Funded by US Embassy and ILEA)

Mr. M. Ramdhary, Financial Intelligence Analyst repre-sented the Director at the Egmont Working Group andthe Egmont Committee meetings in Sofia, Bulgaria from29th March – 2nd April, 2005 (Funded by FIU)

Mr. R. Somaroo, Field Intelligence Officer attended anEgmont / UNODC / ESAAMLG / FIC Training Seminar fornew FIUs in Pretoria, South Africa from 31st October – 1stNovember, 2005 (Funded by UNODC )

Local

Mrs. S.P. Beeharee-Ramyead, Assistant FinancialIntelligence Analyst attended a course on FinancialDelinquency and Money Laundering organised by theUniversity of Mauritius from 26th – 28th October, 2005

Mr.Y. Appadoo, Financial Intelligence Analyst attendeda course in Managing Fraud and Money Launderingorganised by the Mauritius Bankers Association from15th – 18th November, 2005


Participation in Overseas Missions and Training Courses

Appendix IV



Appendix V


1. Albania Drejtoria e Bashkerendimit te Luftes

Kunder Pastrimit te Parave

(DBLKPP) Directorate of Co-ordinating

the Fight Against Money Laundering

2. Andorra Unitat de Prevenció del Blanqueig (UPB)

Money Laundering Prevention Unit

3. Anguilla Money Laundering Reporting Authority

(MLRA)

4. Antigua and Office of National Drug and Money

Barbuda Laundering Control Policy (ONDCP)

5. Argentina Unidad de Información Financiera (UIF)

6. Aruba Meldpunt Ongebruikelijke Transacties -

Ministerie van Financiën (MOT-Aruba)

Reporting Center for Unusual

Transactions

7. Australia Australian Transaction Report & Analysis

Centre (AUSTRAC)

8. Austria Bundeskriminalamt (A-FIU)

9. Bahamas Financial Intelligence Unit (FIU)

10. Bahrain Anti-Money Laundering Unit (AMLU)

11. Barbados Anti-Money Laundering Authority

(AMLA)

12. Belgium Cellule de Traitement des Informations

Financières / Cel voor Financiële

Informatieverwerking (CTIF-CFI)

Financial Information Processing Unit

13. Belize Financial Intelligence Unit (FIU)

14. Bermuda Bermuda Police Service / Financial

Investigation Unit (BPSFIU)

15. Bolivia Unidad de Investigaciones Financieras

(UIF – Bolivia)

16. Bosnia & Financial Intelligence Department (FID)

Herzegovina

17. Brazil Conselho de Controle de Atividades

Financeira (COAF)

Council for Financial Activities Control

18. British Virgin Financial Investigation Agency

Islands

19. Bulgaria Financial Intelligence Agency (FIA)

20. Canada Financial Transactions and Reports

Analysis Centre of Canada/

Centre d’analyse des opérations et

déclarations financières du

Canada (FINTRAC/CANAFE)

21. Cayman Financial Reporting Authority (CAYFIN)

Islands

22. Chile Unidad de Análisis Financiero (UAF)

23. Colombia Unidad de Informacion y Analisis

Financiero (UIAF)

24. Cook Islands Cook Islands Financial Intelligence Unit

(CIFIU)

25. Costa Rica Instituto Costarricense sobre Drogas/-

Unidad de Análisis Financiero

(UAF) 6/30/2005

26. Croatia Financijska Policija / Ured za

Sprjecavanje Pranja Novca

Financial Police / Anti Money Laundering

Department (AMLD)

27. Cyprus ΜΟ.Κ.Α.Σ.— Unit for Combating Money

Laundering

28. Czech Rep. Financní analyticky útvar (FAU – CR)

Financial Analytical Unit

29. Denmark SØK / Hvidvasksekretariatet Stadsadvoka-

ten for Særlig Økonomisk

Kriminalitet / Hvidvasksekretariatet

(HVIDVASK)

National Public Prosecutor for Serious

Economic Crime / Money Laundering

Secretariat

30. Dominica Financial Intelligence Unit (FIU)

31. Dominican Departamento Inteligencia Financiera

Republic


The Egmont GroupFinancial intelligence Units of the World

Operational Units (Meeting the Egmont Definition)Status as of 29 June 2005

Appendix VI


32. Egypt Egyptian Money Laundering Combating

Unit (EMLCU)

33. El Salvador Unidad de Investigacion Financiera

(UIF)

34. Estonia Rahapesu Andmeburo/Money

Laundering Information Bureau

35. Finland Keskusrikospoliisi / Rahanpesun selvitte-

lykeskus (RAP)

National Bureau of Investigation / Money

Laundering Clearing House

36. France Traitement du renseignement et action

contre les circuits financiers clandestins

(TRACFIN)

Processing of information and action

against clandestine financial networks

37. Georgia Saqartvelos Finansuri Monitoringis

Samsaxuri Financial Monitoring Service

of Georgia (FMS)

38. Germany Zentralstelle für Verdachtsanzeigen –


39. Gibraltar Gibraltar Co-ordinating Centre for

Criminal Intelligence and Drugs/

Gibraltar Financial Intelligence Unit

(GCID GFIU)

40. Greece Φορηας Aρθρον 7 N.2331/95 “Commit-

tee of Article 7 of Law 2331/1995”

(C.F.C.I)

41. Grenada Financial Intelligence Unit (FIU)

42. Guatemala Intendencia de Verificación Especial (IVE)

Special Verification Intendency

43. Guernsey Financial Intelligence Service (FIS)

44. Honduras Unidad de Informacion Financiera (UIF)

45. Hong Kong Joint Financial Intelligence Unit (JFIU)

46. Hungary Pénzmosás Elleni Alosztály (ORFK)

47. Iceland Ríkislögreglustjórinn (RLS)

Unit of Investigation and Prosecution

of Economic and Environmental Crime

in Iceland

48. Indonesia Pusat Pelaporan dan Analisis Transaksi

Keuangan Indonesian

Financial Transaction Reports and

Analysis Centre (PPATK/INTRAC)

49. Ireland An Garda Síochána / Bureau of Fraud

Investigation (MLIU)

50. Isle of Man Financial Crime Unit (FCU – IOM)

51. Israel Israel Money Laundering Prohibition

Authority (IMPA)

52. Italy Ufficio Italiano dei Cambi / Servizio

Antiriciclaggio – (UIC/SAR)

Italian Foreign Exchange Office / Anti-

Money Laundering Service

53. Japan Japan Financial Intelligence Office

(JAFIO)

54. Jersey Joint Police & Customs Financial

Investigation Unit- Jersey

(FCU – Jersey) 6/30/2005

55. Korea Korea Financial Intelligence Unit (KoFIU)

(Rep. of)

56. Latvia Kontroles dienests, Noziedîgi iegûto lîdze-

klu legalizâcijas novçrsanas dienests (KD)

Control Service - Office for Prevention of

Laundering of Proceeds Derived from

Criminal Activity

57. Lebanon Special Investigation Commission (SIC)

Fighting Money Laundering

58. Liechtenstein Einheit für Finanzinformationen (EFFI)

59. Lithuania Financial Crime Investigation Service

(FCIS)

60. Luxembourg Cellule de Renseignement Financier

(FIU-LUX)

61. Macedonia Ministerstvo za Finansii-Direkcija za

Sprecuvanje na Perenje Pari

Money Laundering Prevention

Directorate (MLPD)

62. Malaysia Unit Perisikan Kewangan, Bank Negara

Malaysia (UPW)

63. Malta Financial Intelligence Analysis Unit

(FIAU)

64. Marshall Domestic Financial Intelligence Unit

Islands (DFIU)

65. Mauritius Financial Intelligence Unit (FIU)

66. Mexico Financial Intelligence Unit

67. Monaco Service d’Information et de Contrôle sur

les Circuits Financiers (SICCFIN)

Service for Information and Monitoring

of Financial Networks

68. Montenegro Admnistration for the Prevention of

Money Laundering and Terrorism

Financing (APML)


Appendix VI


69. Netherlands Meldpunt Ongebruikelijke Transacties -

(Dutch) Ministerie van Justitie (MOT)

Unusual Transactions Reporting Office

70. Netherlands Meldpunt Ongebruikelijke Transacties –

Antilles Nederlandse Antillen (MOT-Nederlandse

Antillen)

Unusual Transactions Reporting Centre-

Netherlands Antilles

71. New Zealand NZ Police Financial Intelligence Unit

72. Norway ØKOKRIM / Hvitvaskingsenheten

The National Authority for Investigation

and Prosecution of Economic and

Environmental Crime – The Money

Laundering Unit

73. Panama Unidad de Análisis Financiero (UAF -

Panama)

74. Paraguay Unidad de Análisis Financiera (UAF)

75. Peru Unidad de Inteligencia Financiera del

Peru (UIF)

76. Philippines Anti Money Laundering Council (AMLC)

77. Poland Generalny Inspektor Informacji

Finansowej (GIIF)

General Inspector of Financial Information

78. Portugal Unidade de Informação Financeira (UIF)

79. Qatar Qatar Financial Information Unit (QFIU)

80. Romania Oficiul Nacional de Prevenire si

Combatere a Spalarii Banilor (ONPCSB)

National Office for the Prevention and

Control of Money Laundering

81. Russia Komitet Rossijskoi Federacii po

Finansovomu Monitoringu Financial

Monitoring Committee of the Russian

Federation (FMC)

82. San Marino Central Bank of San Marino –

Supervision Dept. – FIU Area

83. Serbia Uprava Za Sprecavanje Pranja Novca.

6/30/2005

Administration for the Prevention of

Money Laundering

84. Singapore Suspicious Transaction Reporting Office

(STRO)

85. Slovakia Spravodajská jednotka finacnej polície

Úradu boja proti organizovanej krimi-

nalite (SJFP UBPOK)

Financial Intelligence Unit of the Bureau

of Organised Crime

86. Slovenia Urad RS za Preprecevanje Pranja

Denarja Ministrstvo za Finance

Office for Money Laundering Prevention

(OMLP)

87. South Africa Financial Intelligence Centre (FIC)

88. Spain Servicio Ejecutivo de la Comisión de

Prevención de Blanqueo de Capitales e

Infracciones Monetarias (SEPBLAC)

Executive Service of the Commission for

the Prevention of Money Laundering and

Financial Crime

89. St. Kitts & Financial Intelligence Unit (FIU)

Nevis

90. St.Vincent & Financial Intelligence Unit (FIU)

the Grenadines

91. Sweden Finanspolisen Rikspolisstyrelsen (NFIS)

National Criminal Intelligence Service,

Financial Unit

92. Switzerland Meldestelle für Geldwäscherei, Bureau de

communication en matière de blanchi-

ment d’argent, Ufficio di comunicazione

in materia di riciclaggio di denaro

Money Laundering Reporting Office –

Switzerland (MROS)

93. Taiwan Money Laundering Prevention Center

(MLPC)

94. Thailand Anti-Money Laundering Office (AMLO)

95. Turkey Mali Suçlari Arastirma Kurulu (MASAK)

Financial Crimes Investigation Board

96. Ukraine

State Department for Financial

Monitoring (SDFM)

97. United Arab Anti-Money Laundering and Suspicious

Emirates Cases Unit (AMLSCU)

98. United National Criminal Intelligence Service/

Kingdom Financial Intelligence Division (NCIS /

FID)

99. United States Financial Crimes Enforcement Network

(FinCEN)

100. Vanuatu Financial Intelligence Unit (FIU)

101.Venezuela Unidad de Inteligencia Financiera

(UNIF)


Appendix VI

(Red/underlined text indicates units accepted during Egmont Group 13th Plenary, Washington, June 2005)


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FINANCIAL INTELLIGENCE UNIT - FIU Mauritius · Pursuant to section 34 of the Financial Intelligence and Anti-Money Laundering Act, 2002, I am pleased to present to you the third Annual