“Ensuring Mauritius never faces another FATF grey listing”[Bizweek’s article – Mathew Beale]

Mauritius is stepping up its commitment to combat financial crime, with a renewed focus on accountability, collaboration, and innovation. Speaking at the Comsure Financial Crime Conference, Mathew Beale, CEO of Comsure Compliance Ltd, emphasized Mauritius’ determination to maintain its position as a trusted and transparent international financial centre.

During the two-day conference, BIZWEEK sat down with Mathew and asked some pressing questions:-

What are the key takeaways from the Attorney General’s speech?

“I think the key takeaway from the Attorney General’s speech was that the Mauritian legislation to enact further financial crime legislation for the jurisdiction to function effectively and to the satisfaction of the international community, such as FATF. He also highlighted that while progress has been made, there’s still more work ahead.

We also had the privilege of hearing from the current Director of Public Prosecutions (DPP) in Mauritius, Mr Rashid Ahmine. His key message resonated deeply: everyone in the financial industry must first and foremost be good corporate citizens, adhering to the law to combat money laundering and other financial crimes. Mr Rashid Ahmine then emphasised his commitment to using the courts of justice without fear or favour, and to taking the necessary action against those who have committed crimes. It was a powerful reminder of our collective responsibility in the fight against financial crime. Together, we must uphold integrity and ensure accountability in our industry.

What stood out to me is the focus on accountability — suggesting that moving forward, we will likely see stronger enforcement and more prosecutions for wrongdoing where, in the past, there may have been leniency.

I personally think there will be challenges ahead for those who find themselves on the wrong side of the law. In the past, some issues may have been overlooked, but going forward, I believe we will see a stronger focus on accountability and more prosecutions for wrongdoing.

What is the inspiration behind this year’s theme which is “Guardians of Paradise: Outsmarting Financial Crime”, and how does it reflect the journey of Mauritius as a financial centre?

The theme “Guardians of Paradise: Outsmarting Financial Crime” reflects both the responsibility and resilience of Mauritius as a reputable international financial centre. The idea of being “guardians” speaks to our collective duty to protect this island’s hard-earned reputation — a paradise not just in its natural beauty, but in its integrity, governance, and commitment to high standards.

Having been involved with Mauritius for the past twenty years, I have seen first-hand the country’s remarkable progress and the determination to strengthen its position globally. My passion lies in ensuring that Mauritius never faces another grey listing and continues to be recognized as a trusted and transparent jurisdiction.

The fact that global partners including the United States which is currently building an embassy here have such confidence in Mauritius demonstrates that the world values its commitment to compliance and good governance.

However, with that recognition comes responsibility. We must remain vigilant and ensure that we consistently stay on the right side of both local and international laws. The theme serves as a timely reminder that safeguarding our financial paradise requires intelligence, integrity, and continuous effort to outsmart financial crime.

You have spoken about the importance of collaboration among regulators, law enforcement, and the private sector. How can such cooperation make the idea of being “guardians” a practical reality?

Collaboration among regulators, law enforcement, and the private sector is essential because it saves time, reduces duplication, and promotes consistency. At the moment, each industry sector produces its own guidance and interpretations of the same laws, which results in confusion and inefficiency, along with an uneven playing field in the application of the law. Instead of having multiple handbooks that essentially say the same thing in slightly different ways, we should aim for one well-crafted, comprehensive document developed collaboratively and agreed upon by all relevant parties.

Such a centralised approach would not only streamline compliance efforts but also build trust and understanding across sectors. It would allow each industry to contribute its specific expertise under a unified framework, ensuring both consistency and practicality. In this way, collaboration makes the idea of being “guardians” a reality. 

Mauritius positions itself as a trusted and transparent jurisdiction. How do events like the Comsure Financial Crime Conference reinforce that reputation on the international level?

Events like the Comsure Financial Crime Conference play a key role in reinforcing Mauritius’s reputation as a trusted and transparent jurisdiction. Such platforms demonstrate the country’s commitment to upholding high standards of integrity and compliance.

When leading professionals such as the Accountant General, Director of Public Prosecutions (DPP), lawyers, senior financial service practitioners and accountants are actively engaged in discussions about financial crime prevention and best practices, it sends a strong signal internationally that Mauritius takes its responsibilities seriously.

Moreover, transparency and ethical conduct are qualities that attract reputable investors and regulated businesses. In a world where financial crime remains a trillion-dollar concern, most investors prefer to operate in well-regulated environments with robust governance and credible financial institutions. By fostering dialogue on “doing the right thing,” conferences like this one help strengthen Mauritius’s image as a reliable, responsible, and forward-looking financial centre.

The title of your session which is “Effectiveness or Exhaustion” poses a stark question. From your experience, are compliance frameworks today delivering real results, or simply overwhelming institutions?

Reading between the lines of my presentation, there is clearly a sense of exhaustion in the system. Many compliance frameworks today have become overstretched and overburdened largely because we have drifted into a tick-box approach to regulation.

What we need now is a shift from mere compliance to collaboration. Institutions, regulators, and stakeholders must work more closely together and provide clearer guidance. Without that, the entire framework risks failing in its purpose.

Ultimately, we have to step back and remind ourselves of our true objective: stopping financial crime. If we keep that goal at the centre, then the regulator’s role in checks and balances and in holding non-compliant institutions accountable becomes part of a system that delivers real results, not just more paperwork.

In the case of Mauritius, many existing laws are outdated and have been amended repeatedly to fit modern contexts. Instead of continuously patching old legislation, it may be time to draft a new, comprehensive legal framework that reflects the realities and needs of today’s society and economy.

What are your views about the laws that govern the system?

In Mauritius, many existing laws and regulatory guidance are outdated and have been amended repeatedly to reflect modern contexts. Instead of continuously patching old rules, it may be time to draft a new, comprehensive legal framework that reflects the realities and needs of today’s society and economy.

And in drafting a new, comprehensive legal framework, ensure clarity of the rules. Currently, there is an issue with the rules that laws lie in the tension between two main legal and regulatory approaches: bright-line regulation and principle-based rules.

Bright-line often seen in systems like that of the United States, provides clear and specific rules. Practitioners tend to prefer this approach because it gives certainty as they know exactly what is permitted or prohibited. However, it can also hinder innovation, as strict rules leave little room for flexibility or interpretation.

On the other hand, principle-based rules, as found in systems such as English Civil Law, focus on broader principles rather than detailed rules. This approach works best for well-governed firms that are committed to ethical conduct and willing to develop their own compliant frameworks. It allows for adaptability and innovation but also requires a high degree of integrity and professional judgment.

The ongoing debate between these two philosophies, bright-line regulation and principle-based rules remains a significant challenge for lawmakers and regulators. However, in drafting a new, comprehensive legal framework, these philosophies must be addressed because a purely bright-line approach risks creating rigid rules that foster regulatory arbitrage, encourage box-ticking compliance over genuine risk management, and quickly become obsolete amid rapid financial innovation. Conversely, an exclusively principle-based system invites inconsistent enforcement, subjective interpretations by regulators, and heightened legal uncertainty for firms, potentially stifling innovation and cross-border competition. A hybrid framework is essential to balance certainty with flexibility, ensuring robust consumer protection, systemic stability, and adaptability to emerging technologies like DeFi and AI-driven trading, while minimising compliance costs that disproportionately burden smaller institutions.

Do you believe global AML/CFT/CPF systems are producing meaningful deterrence, or are we witnessing diminishing returns from excessive regulation?

I believe that while the global AML/CFT/CPF systems have historically leaned toward excessive rule-making, we are now beginning to see a shift toward meaningful implementation and measurable deterrence. The FATF’s statement in 2013 about testing the effectiveness of their rules was a key turning point, thus signalling a move from simply having frameworks in place to ensuring they actually work in practice.

In Mauritius, we can clearly observe this evolution. For instance, something as symbolic as the car park at the FCC Building illustrates that enforcement bodies are active and engaged towards effectiveness in action rather than on paper. Also, many bad actors have been charged with financial crime through 2025. Moreover, the Attorney General’s recent comments about introducing more laws to make the fight against financial crime more effective and the DPP comments about using the courts of justice without fear or favour, and taking the necessary action against those who have committed crimes show that the focus is no longer just on quantity of regulation, but on the quality and application of these measures.

It seems the pendulum is indeed beginning to swing toward balance — moving away from endless rule-writing toward refining and actively using the rules that already exist. This shift suggests that global AML/CFT/CPF efforts may finally be delivering meaningful deterrence rather than diminishing returns.

In Mauritius’ context, how can institutions move from a form-based approach to a substance-based one that truly mitigates risk?

The transition from a form-based to a substance-based approach in Mauritius requires a concerted effort from both regulators and regulated entities. Regulators must lead through clear guidance, education, and consistent supervision, while institutions must internalize the principles of risk-based compliance and embed them into their culture and operations.

Only through such a coordinated and informed approach can the Mauritian financial system achieve a truly effective and sustainable framework for risk mitigation and regulatory compliance.

So, I would like the risk-based approach to be adopted and followed properly by all actors of the industry. And, that can only happen where there is education from the regulator in regards to a consistent approach to mitigate risk.

What we need now is a shift from mere compliance to collaboration. Institutions, regulators, and stakeholders must work more closely together and provide clearer guidance. Without that, the entire framework risks failing in its purpose.

What is the right balance between international compliance expectations and operational realities of smaller jurisdictions?

You cannot be half pregnant? Compliance cannot be selective; jurisdictions cannot be “half-compliant.” For Mauritius, the path to effective implementation lies in proportionate, risk-based measures, capacity building, and international collaboration.

By balancing these elements, Mauritius meets international standards, mitigates financial crime, and reinforces its position as a credible financial centre.

The journey that the FATF wants is that everybody has to be equal. Unless you have a global level playing field, that will certainly stop the criminals finding the gaps in the global system.

With RegTech and AI tools transforming compliance, do you think technology will restore effectiveness or further contribute to exhaustion?

In reality, it is likely to do both. In the early years, technology may contribute more to exhaustion because AI will not always deliver accurate or useful outcomes largely because our skills in using AI are still developing. As we become more proficient at understanding how AI manipulates data and interpreting its outputs, it has the potential to become a highly effective tool.

At present, many people are using AI in a “clunky” way, which can produce poor results. Therefore, it’s crucial that we approach these tools with caution and invest in learning how to use them properly.

As you close the conference, what message do you hope participants will take away regarding the next phase of AML/CFT/CPF evolution?

Firstly, I hope participants will recognize and appreciate the knowledge they already have. We are not introducing unfamiliar concepts, rather, we are reinforcing what they know and offering new ways to communicate the risks we discussed back in their offices.

The Attorney General’s speech was particularly powerful, as was that of the Director of Public Prosecutions (DPP), Mr Rashid Ahmine, and, I would even turn the messages into a poster to hang on the wall, not to remind us of where we are, but to inspire us about where we are heading in the next phase of AML/CFT/CPF evolution.

Source

https://bizweek.mu/ensuring-mauritius-never-faces-another-fatf-grey-listing/