Mauritius has earned global recognition for its swift and determined reforms in AntiMoney Laundering and Countering the Financing of Terrorism (AML/CFT). In a remarkably short span, the country exited the Financial Action Task Force (FATF) grey list —an achievement few jurisdictions accomplish with such speed. By September 2022, Mauritius had achieved “Compliant” or “Largely Compliant” ratings across all 40 FATF Recommendations, reflecting a strong regulatory framework and unwavering political commitment.
As the country prepares for its next Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) Mutual Evaluation in 2027, a less visible but equally critical threat demands attention: Proliferation Financing (PF). Often overshadowed by money laundering and terrorist financing, PF poses a global risk with direct local implications.
Proliferation Financing may be a quieter risk yet it is equally consequential, if not more. This article puts PF in the spotlight that its urgency demands.
Understanding Proliferation Financing and Why It Matters
Proliferation financing refers to the provision of financial services or funds used in the development, acquisition, or transportation of weapons of mass destruction (WMDs), including nuclear, chemical, and biological weapons. Under the Mauritius’ United Nations Sanctions Act 2019, “proliferation” includes not only the movement of WMDs but also related technical training, advice, service, brokering or assistance.
PF is not as widely understood or discussed as ML or TF, and it may seem distant or unlikely in the Mauritian context. However, its low visibility is precisely what makes it dangerous. PF often involves legitimate-looking trade transactions, front companies, and intermediaries that operate under the radar of conventional monitoring systems. Unlike money laundering (ML), which seeks to obscure illicit origins, or terrorist financing (TF), which supports violent extremism, PF is often state-sponsored. It involves complex supply chains and dual-use goods items that serve both civilian and military purposes. PF transactions may not involve large sums or overt criminal behaviour, making them especially difficult to detect.
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